(September 26 – 16:30 ET) – Star Data Systems Inc. is reporting improved earnings for the first quarter of fiscal 2001 ended August 31, 2000. The solutions provider achieved quarterly net income of $1.5 million or 9¢ a share. This was 54% higher than the $1 million reported in the first quarter of the previous year.
Star Data said this performance reflects it’s continued focus on improving profitability and managing costs such as administrative expenses, which were down 17% year over year.
Revenue in the first quarter was $20.4 million, 4% ahead of the $19.6 million generated in the fourth quarter of fiscal 2000. The company said first quarter revenues were in line with revenues from continuing businesses in the same quarter a year ago of $20.4 million.
Total revenue in the first quarter of fiscal 2000 was $20.7 million. Information Services revenues increased 16% to $10.5 million compared to $9 million for continuing businesses a year ago. Star Data said growth in the installed base of StarQuote subscribers has now reached an all time high of 18,400 terminals.
Wealth Management Solutions’ quarterly revenues of $9.9 million was 3% above the $9.5 million in the fourth quarter of fiscal 2000, but was less than the $11.3 million in the first quarter last year. The first quarter of last year saw substantially higher custom development activity as Star Data provided services to customers preparing for Y2K.
“The significant earnings growth achieved this quarter and continuing improvement in operating margins provides a solid financial foundation to support our strategic plans,” stated Alan Hutton, Star Data’s president and CEO. “We are leveraging our financial strength to increase our investment in partnerships such as Fidelity Investments Canada, and in developing new products. In addition we will continue to aggressively pursue acquisition and alliance opportunities intended to build on the momentum we have gained.”
-IE Staff