CSG Reports Q1 667329

Total revenues for Q1 2009 were $123.5M, a 9% increase when compared to $113.6M for the same period in 2008

April 28, 2009

2 Min Read

ENGLEWOOD, Colo. -- CSG Systems International, Inc. (Nasdaq: CSGS - News), a leading provider of customer interaction management and billing solutions, today reported results for the quarter ended March 31, 2009.

“We are quite pleased with our solid financial results for the start of 2009, as we increased adoption of our solutions, diversified into new verticals, and delivered new products to the marketplace,” said Peter Kalan, chief executive officer and president of CSG Systems. “We continue to increase our market share within the cable sector with planned conversions of over three million subscribers onto our Advanced Convergent Platform during the next 12 months. These important market share wins validate our product excellence, reliable service, and innovative solutions that earn our clients’ business on a daily basis.”

Results of Operations

Revenues: Total revenues for the first quarter of 2009 were $123.5 million, a 9% increase when compared to $113.6 million for the same period in 2008 and consistent with the fourth quarter of 2008 revenues of $123.6 million. The increase in year-over-year revenues relates primarily to the additional revenues generated from the DataProse and Quaero businesses CSG acquired over the past 12 months.

Operating Income: GAAP operating income for the first quarter of 2009 was $21.6 million, or 17.5% of total revenues, compared to $23.3 million, or 20.5% of total revenues, for the same period last year. Non-GAAP operating income for the first quarter of 2009 was $23.0 million, or 18.6% of total revenues. Non-GAAP operating income excludes $1.4 million of expenses related to CSG’s transition of its data center services from First Data Corporation to Infocrossing (“Data Center Transition Expenses”), which began in the first quarter of 2009.

Earnings per Share: GAAP EPS for the first quarter of 2009 was $0.37, compared to $0.39 for the same period last year. Non-GAAP EPS for the first quarter of 2009 was $0.41, compared to non-GAAP EPS of $0.43 for the first quarter of 2008. The year-over-year decreases in both EPS measures are primarily due to the decrease in operating margin between periods as a result of the impact of the DataProse and Quaero acquisitions on CSG’s overall results of operations.

Non-GAAP EPS excludes the impact of the following items on a tax-affected, per diluted share basis: (i) Data Center Transition Expenses; (ii) amortization of the original issue discount (“OID”) for CSG’s convertible debt securities; and (iii) the gain on the repurchase of CSG’s convertible debt securities.

Total customer accounts processed on CSG's systems as of March 31, 2009, were 45.4 million, as compared to 45.3 million customer accounts processed as of December 31, 2008.

CSG Systems International Inc. (Nasdaq: CSGS)

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