CSG Reports Q2 644699

ENGLEWOOD, Colo. -- CSG Systems International, Inc. (Nasdaq: CSGS - News), a leading provider of customer care and billing solutions, today reported results for the quarter ended June 30, 2007.

Second Quarter 2007 Highlights:

"Our second quarter's financial performance is reflective of the strong acceptance of CSG's solutions," Ed Nafus, chief executive officer and president of CSG Systems International, Inc., said. "Our clients continue to turn to us as a trusted and valued partner as they aim to strengthen customer relationships and roll out new products in this very competitive and ever-changing marketplace. Looking ahead, we remain very committed to delivering innovative solutions to ensure our clients have the tools they need to make every interaction with their customers both meaningful and efficient, driving value through customer satisfaction and cost savings as they expand their businesses."

Second Quarter 2007 Results From Continuing Operations

Total revenues for the second quarter of 2007 were $99.5 million, which were within the range of CSG's financial guidance for the quarter. Second quarter revenues represent an increase of five percent when compared to $95.0 million for the same period in 2006, and an increase of one percent when compared to $98.7 million for the first quarter of 2007. The components of total revenues were as follows: (i) processing revenues for the second quarter of 2007 were $90.3 million, an increase of three percent when compared to $87.7 million for the same period last year, and an increase of one percent when compared to $89.6 million for the first quarter of 2007; and (ii) software, maintenance and services revenues were $9.2 million for the current quarter, a 25 percent increase when compared to $7.3 million for the same period last year, and a one percent increase when compared to $9.1 million for the first quarter of 2007.

Income from continuing operations presented in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2007 was $15.6 million, or $0.37 per diluted share, compared to $15.6 million, or $0.33 per diluted share, for the same period last year, and $15.8 million, or $0.35 per diluted share, for the first quarter of 2007.

Total customer accounts processed on CSG's systems as of June 30, 2007 were 45.1 million, as compared to 45.4 million customer accounts processed as of March 31, 2007. To date, nearly 100% of CSG's cable customer accounts have migrated to CSG's Advanced Convergent Platform, or ACP.

Third Quarter 2007 and Full Year 2007 Financial Guidance

A summary of CSG's financial guidance for continuing operations for the third quarter and full year 2007 is as follows (in millions, except for per share amounts and percentages). These expected results include the estimated GAAP impact of the acquired ComTec business, which closed on July 9, 2007, including estimates for certain acquisition-related expenses such as amortization of the acquired intangible assets, and planned integration efforts. The actual impact of the ComTec business may vary from our current expectations as we complete the purchase accounting and work through our integration efforts during the remainder of the year.

CSG Systems International Inc. (Nasdaq: CSGS)