Tech News

• Kornit Digital Reports Third Quarter 2015 Results

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  Highlights

  • Third quarter 2015 sales of $22.2 million, an increase of 20.0% over the prior year
  • Non-GAAP operating margin of 13.5%, or $3 million; GAAP operating margin of 10%, or $2.2 million
  • Third quarter non-GAAP net income of $2.9 million, or $0.09 per diluted share; GAAP net income of $2.1 million or $0.07 per diluted share.
  • Key customer places fourth order for Allegro R2R system

  ROSH-HA'AYIN, Israel, Nov. 3, 2015 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT), a leading provider of digital printing solutions for the global printed textile industry, today reported results for the third quarter ended September 30, 2015.

  Sales for the third quarter of 2015 increased 20.0% year-over-year to $22.2 million, as a result of incremental revenue associated with the new Allegro roll-to-roll system, combined with continued growth in direct-to-garment (DTG) systems and ink.

  Non-GAAP net income in the third quarter of 2015 was $2.9 million, or $0.09 per diluted share, compared to prior-year net income of $3.5 million. On a GAAP basis, the Company reported a net income of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, in the third quarter of 2014.

  Gabi Seligsohn, Kornit Digital's Chief Executive Officer commented, "During the third quarter, we continued to deepen our customer relationships and generate strong interest for our disruptive solutions, particularly of our recently introduced high throughput systems. To that point, throughout the quarter we hosted multiple demonstrations for our newly introduced Allegro and pre-beta Vulcan systems, which generated strong customer interest. For the Allegro, several customer interactions have led to system orders which will be installed during the fourth quarter. For Vulcan, we successfully executed on multiple pre-beta customer demos, all of which have led to firm demand for systems by those customers."

  Seligsohn continued, "We are pleased with the growth in our business through the first nine-months of 29% vs. the same period last year, although third quarter growth came in at the lower end of our guided range due to the timing of system volume. As we have seen in the past, quarter-to-quarter growth is not linear at this stage in our evolution. Looking to the balance of the year, we anticipate revenue from our recently introduced high throughput systems and volume from several new customers to provide a tailwind as we close out 2015."

  Results of Operations

  In the third quarter of 2015, Kornit reported sales of $22.2 million, an increase of 20.0% compared with the prior-year level of $18.5 million. Higher sales were the result of contributions from all product categories including systems, ink and consumables, and services.

  Non-GAAP gross margin as a percentage of sales in the third quarter of 2015 was 48.3%, compared with 50.6% in the prior-year period. Lower gross margin compared to the prior year resulted from two large customer orders of multiple high-end systems in the third quarter of 2014, which provided a favorable margin rate during the period. Excluding the impact of these orders, our gross margin run rate continued to expand as a result of the ongoing mix shift to higher throughput systems, incremental ink sales, and a stronger contribution from services. On a GAAP basis, gross margin was $10.6 million, or 47.6% of sales.

  Non-GAAP operating expenses in the third quarter increased to $7.7 million, compared to $5.6 million in the prior year. The increase in total operating expenses is consistent with the previously stated growth strategy, as the Company continues to execute to its global infrastructure build out. As a percent of sales, non-GAAP operating expenses for the third quarter were 34.8% of sales, an increase from 30.4% of sales in the prior year. On a GAAP basis, operating expenses were $8.4 million, or 37.7% during the quarter.

  Non-GAAP research and development expenses were $2.9 million, compared to $2.2 million in the prior-year. On a GAAP basis, research and development expenses were $3.1 million, or 13.8% of sales during the quarter.

  Non-GAAP operating profit in the third quarter declined to $3.0 million, compared to $3.7 million in the prior year. As a percent of sales, non-GAAP operating profit for the third quarter was 13.5% of sales, a decrease from 20.2% of sales in the prior year.

  Non-GAAP net income for the third quarter of 2015 were $2.9 million, or $0.09 per diluted share, compared with Non-GAAP net income of $3.5 million, or $0.31 in the prior year period.

  On a GAAP basis, the Company reported net earnings of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, or $0.3 per diluted share in the third quarter of 2014.

  2015 Third Quarter Guidance

  The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com.

  Conference Call Information

  Kornit will host a conference call today at 5:00 p.m. ET, or 12:00 a.m. Israel time, to discuss the results, followed by a question and answer session for the investment community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-888-427-9411 or +1-719-325-2458. The toll-free Israeli number is 1-809-24 5906. The confirmation code is 8335584.

  To listen to a telephonic replay of the conference call, dial toll-free 1-877-870-5176 or +1-858-384-5517 (international) and enter confirmation code 8335584. The telephonic replay will be available beginning at 8:00 p.m. ET on Tuesday, November 3, 2015, and will last through 11:59 p.m. ET November 17, 2015. The call will also be available for replay via the webcast link on Kornit's Investor Relations website.

  Forward Looking Statements

  Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance," "preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements relating to the company's objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: development of the market for digital textile printing, availability of alternative ink, competition, sales concentration, changes to our relationships with suppliers, our success in developing, introducing and selling new or improved products, our success in marketing, our success in effectively increasing our field presence and those factors referred to under "Risk Factors" in the company's final prospectus filed with the U.S. Securities and Exchange Commission. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

  Non-GAAP Discussion Disclosure

  Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude acquisition related expenses, share-based compensation expenses, amortization of acquired intangible assets and compensation related to the IPO. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

  About Kornit                                                                                           

  Kornit develops, designs and markets innovative digital printing solutions for the global printed textile industry. Kornit's solution includes its proprietary digital printing systems, ink and other consumables, associated software and value added services. Kornit's vision is to revolutionize the textile industry by facilitating the transition from analog processes that have not evolved for decades to digital methods of production that address contemporary supply, demand and environmental dynamics. Kornit is a global company headquartered in Rosh-Ha`Ayin, Israel, with U.S. offices in Mequon, Wisconsin and additional sales, support and marketing offices in Germany and Hong Kong.

  KORNIT DIGITAL LTD.
  AND ITS SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF INCOME
  (U.S. dollars in thousands, except share and per share data)
  	Nine Months Ended		Three Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  	(Unaudited)		(Unaudited)
  Revenues	$ 61,077	$ 47,495	$ 22,201	$ 18,494
  Cost of revenues	32,547	26,855	11,624	9,196
  Gross profit	28,530	20,640	10,577	9,298
  Operating expenses:
  Research and development	8,573	6,851	3,067	2,263
  Selling and marketing	9,175	7,569	3,264	2,195
  General and administrative	7,213	3,716	2,028	1,393
  Total operating expenses	24,961	18,136	8,359	5,851
  Operating income	3,569	2,504	2,218	3,447
  Financial income (expenses), net	(170)	(199)	279	(105)
  Income before taxes on income	3,399	2,305	2,497	3,342
  Taxes on income	739	476	354	173
  Net income	2,660	1,829	2,143	3,169
  Basic net income per share	$ 0.12	$ 0.20	$ 0.07	$ 0.35
  Weighted average number of shares used in computing basic net income per share	22,814,312	8,968,343	29,779,017	8,968,343
  Diluted net income per share	$ 0.11	$ 0.18	$ 0.07	$ 0.30
  Weighted average number of shares used in computing diluted net income per share	24,734,519	10,139,704	31,743,307	10,663,649

  KORNIT DIGITAL LTD.
  AND ITS SUBSIDIARIES
  RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
  (U.S. dollars in thousands, except per share data)
  	Nine Months Ended		Three Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  	(Unaudited)		(Unaudited)
  GAAP net income as reported	$ 2,660	$ 1,829	$ 2,143	$ 3,169
  Non-GAAP adjustments
  Expenses recorded for share-based compensation
  Cost of revenues	197	59	85	20
  Research and development	209	43	85	29
  Selling and marketing	338	122	174	41
  General and administrative	882	289	307	159
  Acquisition related expenses
  Research and development	188	--	62	--
  General and administrative	550	--	--	--
  Intangible assets amortization
  Cost of revenues	169	94	56	32
  Compensation in relation to the IPO
  Separation payment to shareholder	750	--	--	--
  IPO bonuses to employees	270	--	--	--
  Total adjustments	3,553	607	769	281
  Non-GAAP net income	$ 6,213	$ 2,436	$ 2,912	$ 3,450
  Non- GAAP diluted net income per share	$ 0.25	$ 0.23	$ 0.09	$ 0.31
  Weighted average number of shares used in computing diluted net income per share	25,111,776	10,431,433	32,096,739	11,125,629

  KORNIT DIGITAL LTD.
  AND ITS SUBSIDIARIES
  CONDENSED CONSOLIDATED BALANCE SHEETS
  (U.S. dollars in thousands)
  	September 30,	December 31,
  	2015	2014
  	(Unaudited)
  ASSETS
  CURRENT ASSETS:
  Cash and cash equivalents	$ 37,377	$ 4,993
  Short term bank deposits	11,000	--
  Available for sale marketable securities	3,543	--
  Trade receivables, net	17,319	9,770
  Other accounts receivables and prepaid expenses	3,473	1,775
  Inventory	14,729	11,986
  Total current assets	87,441	28,524
  LONG-TERM ASSETS:
  Available for sale long-term marketable securities	22,305	--
  Severance pay fund	1,121	1,187
  Property and equipment, net	4,097	3,660
  Intangible assets, net	1,079	245
  Deferred issuance costs	--	849
  Other assets	292	249
  Total long-term assets	28,894	6,190
  Total assets	$ 116,335	$ 34,714
  LIABILITIES AND EQUITY
  CURRENT LIABILITIES:
  Trade payables	$ 9,028	$ 5,901
  Employees and payroll accruals	4,442	2,968
  Deferred revenues and advances from customers	552	1,863
  Other payables and accrued expenses	3,116	2,606
  Total current liabilities	17,138	13,338
  LONG-TERM LIABILITIES:
  Accrued severance pay	1,829	1,903
  Deferred taxes	153	122
  Total long-term liabilities	1,982	2,025
  SHAREHOLDERS' EQUITY	97,215	19,351
  Total liabilities and shareholders' equity	$ 116,335	$ 34,714

  KORNIT DIGITAL LTD.
  AND ITS SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  (U.S. dollars in thousands)
  	Nine Months Ended		Three Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  	(Unaudited)		(Unaudited)
  Cash flows from operating activities:
  Net income	$ 2,660	$ 1,829	$ 2,143	$ 3,169
  Adjustments to reconcile net income to net cash (used in) provided by operating activities:
  Depreciation and amortization	1,279	1,004	613	360
  Share-based compensation	1,626	513	651	249
  Increase in accrued interest and amortization of premium on marketable securities	(43)	--	(43)	--
  Increase (decrease) in accrued severance pay, net	(8)	289	(50)	68
  Decrease (increase) in trade receivables	(7,726)	(1,541)	(6,235)	57
  Decrease (increase) in other receivables and prepaid expenses	(1,556)	55	(304)	645
  Increase in inventories	(3,361)	(1,961)	(1,802)	(426)
  Changes in deferred taxes, net	(76)	--	(18)	--
  Increase (decrease) in other long term assets	(49)	4	51	11
  Increase (decrease) in trade payables	3,101	(2,029)	(23)	(1,606)
  Increase in employees and payroll accruals	1,486	302	799	26
  Increase (decrease) in deferred revenues	(1,281)	374	(1,006)	(2,796)
  Increase (decrease) in other payables and accrued expenses	729	(720)	391	266
  Interest on short-term bank deposit	(30)	(1)	(30)	(1)
  Gain from sale of property and equipments	--	(5)	--	--
  Foreign currency translation loss on inter company balances with foreign subsidiaries	409	174	6	124
  Net cash (used in) provided by operating activities	(2,840)	(1,713)	(4,857)	146
  Cash flows from investing activities:
  Purchase of property and equipment	(1,052)	(1,407)	(279)	(515)
  Cash paid in connection with acquisition	(1,000)	--	--	--
  Proceeds from (investment in) bank deposits, net	(11,000)	2,094	(11,000)	1,076
  Proceeds from redemption or sale of marketable securities	1,500	--	1,500	--
  Proceeds from sale of property and equipment	8	6	8	--
  Purchase of marketable securities	(27,428)	--	(27,428)	--
  Net cash provided by (used in) investing activities	(38,972)	693	(37,199)	561
  Cash flows from financing activities:
  Payment of issuance costs	--	--	--	--
  Proceeds from initial public offering, net (Payment of issuance costs)	74,180	(6)	(1,052)	(6)
  Exercise of employee stock options	60	6	60	--
  Net cash provided by (used in) financing activities	74,240	--	(992)	(6)
  Foreign currency translation adjustments on cash and cash equivalents	(44)	(36)	1	(31)
  Increase (decrease) in cash and cash equivalents	32,428	(1,020)	(43,048)	701
  Cash and cash equivalents at the beginning of the period	4,993	5,329	80,424	3,603
  Cash and cash equivalents at the end of the period	37,377	4,273	37,377	4,273
  (a) Non-cash investing activities:
  Non-cash investing activities:
  Purchase of property and equipment on credit	145	52	145	52
  Non-cash issuance expenses	--	56	--	56
  Inventory transferred to be used as property and equipment	592	69	306	69
  Property and equipment transferred to be used as inventory	106	--	--	--

  CONTACT: Investor Contact: Michael Callahan, ICR (203) 682-8311 Michael.Callahan@icrinc.com

  Full ArticleVisit Website

• Epiq Systems Reports Third Quarter 2015 Results and Updates Fiscal Year 2015 Outlook

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  KANSAS CITY, Kan., Nov. 3, 2015 (GLOBE NEWSWIRE) -- Epiq Systems, Inc. (NASDAQ:EPIQ), a leading global provider of integrated technology solutions for the legal profession, today announced results for its third quarter ended September 30, 2015 and updated its full year financial outlook for 2015. Epiq will hold a conference call today at 4:30 pm ET to review its results (details below).

  Summary Results (Unaudited)
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions, except share count and per share data)	2015	2014	2015	2014
  Segment Operating Revenue
  Technology	$91.8	$69.1	$255.0	$228.8
  Bankruptcy & Settlement Administration	$39.5	$34.8	$114.6	$106.8
  Total Operating Revenue	$131.3	$103.9	$369.6	$335.6
  Net Income (Loss)(1)	($19.2)	$5.0	($20.7)	($0.7)
  Net Income (Loss) Per Diluted Share(1)	($0.52)	$0.14	($0.57)	($0.02)
  Adjusted EBITDA(2)	$29.7	$23.7	$75.9	$71.8
  Adjusted Net Income(2)	$9.0	$6.5	$21.4	$20.7
  Adjusted Earnings Per Diluted Share(2)	$0.24	$0.18	$0.58	$0.59
  Adjusted Diluted Shares (in thousands)	37,055	36,288	36,995	35,339
  Net Cash from Operating Activities	$18.9	$18.6	$46.8	$37.4
  (1) Includes impact of a GAAP net non-cash tax charge of $19.0 million related to establishing a full valuation allowance against U.S. deferred tax assets. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. The valuation allowance is included in "Provision for (benefit from) income taxes" in the Condensed Consolidated Statements of Operations.
  (2) Adjusted net income, adjusted EBITDA and adjusted earnings per share are all non-GAAP financial measures. See the accompanying tables herein for information regarding these measures and reconciliation to the most comparable GAAP measure.

  Q3 Financial Overview

  Third quarter 2015 operating revenue increased 26%, or 16% excluding operating revenue from recently acquired Iris Data Services, compared to the third quarter 2014 driven by both of Epiq's operating segments. Technology segment operating revenues increased 33%, or 17% excluding operating revenue from Iris, compared to the prior year quarter while Bankruptcy and Settlement Administration operating revenue increased 14%. Consolidated adjusted EBITDA increased 25% from $23.7 million in the third quarter 2014 and rose 20% from $24.7 million in Q2 2015 and 39% from $21.4 million in Q1 2015. Quarterly adjusted EPS of $0.24 per diluted share increased 33% compared to the prior year quarter and rose 33% from $0.18 in Q2 2015 and 60% from $0.15 in Q1 2015.

  Recent Company Highlights

  • Launch of a full-service eDiscovery office in Frankfurt, including managed services through Iris Data Services, a comprehensive document review center, and data processing and hosting in a world-class data center.
     
  • Retained as call center provider to support the U.S. Office of Personnel Management's (OPM) response to cybersecurity incidents earlier this year impacting 21.5 million individuals.
     
  • Recently elected independent directors, Kevin L. Robert and Douglas M. Gaston, have been newly appointed as chairs of the Audit Committee and Compensation Committee, respectively, and the Board of Directors is exploring the addition of new independent directors.
     
  • Declared dividend of $0.09 per share, Epiq's 22^nd consecutive quarterly dividend, payable November 16, 2015 to shareholders of record at the close of business October 15, 2015.

  "Epiq delivered a strong quarter of growth in operating revenue, adjusted EBITDA and adjusted EPS reflecting both organic growth and the first full quarter of Iris Data Services revenue as we finalize the integration of that organization into Epiq's global footprint. We see Iris's leading managed services offering being a key part of our eDiscovery growth strategy and market differentiation," said Tom W. Olofson, chairman and CEO, Epiq Systems.

  "Epiq continues to be a preferred strategic partner for complex legal matters. The pace of data breaches, regulatory investigations and a healthy environment for corporate M&A provide favorable indicators of global demand for our services. While Epiq continues to gain market share and achieve revenue growth, we are very focused on improving margins and profitability in 2015. We have identified and are implementing a range of initiatives to better leverage our global resources, optimize efficiency and improve our cost structure."

  Segment Review 

  Technology Segment (eDiscovery)
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions)(Unaudited)	2015	2014	2015	2014
  Operating Revenue	$91.8	$69.1	$255.0	$228.8
  Adjusted EBITDA	$26.3	$20.5	$68.6	$63.3
  Operating Revenue Mix
  By Service Type
  Electronically Stored Information (ESI)	62%	63%	60%	57%
  Document Review	38%	37%	40%	43%
  By Region
  North America	78%	74%	78%	80%
  Europe and Asia	22%	26%	22%	20%

  Epiq's Technology segment provides integrated technology solutions for electronic discovery (eDiscovery), including global electronically stored information (ESI, which includes Iris eDiscovery managed services) and global document review. Revenue growth within Technology (excluding Iris) was 17% for the third quarter and 33% for the segment including Iris. Operating revenue from international eDiscovery increased by $2.4 million compared to the prior year quarter reflecting growth in both document review and ESI service revenues from new and existing clients. On a pro forma basis and excluding Iris Data Services, international eDiscovery represented 25% of Technology segment operating revenue compared to 26% in the prior year quarter. While pricing pressure in North American ESI services continued to impact operating margins, Technology segment adjusted EBITDA increased 28% compared to the third quarter 2014 primarily due to increased demand for ESI and document review services worldwide in addition to initiatives to drive cost control and increased efficiency.

  Bankruptcy and Settlement Administration Segment
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions)(Unaudited)	2015	2014	2015	2014
  Operating Revenue	$39.5	$34.8	$114.6	$106.8
  Adjusted EBITDA	$13.9	$12.7	$36.1	$38.5

  Bankruptcy and Settlement Administration segment third quarter operating revenue increased 14% compared to the prior year period, driven primarily by 29% growth in Settlement Administration. A low level of Chapter 11 bankruptcy filings persisted in the third quarter, a trend that is expected to continue for the remainder of 2015. Epiq continues to secure non-traditional work and ongoing projects from current clients to supplement operating revenue in this segment. Segment Adjusted EBITDA increased 9% from the prior year quarter due to increased revenue from Settlement Administration services and activity from existing Bankruptcy engagements and non-traditional clients.

  GAAP Non-Cash Tax Charge

  For the third quarter 2015, Epiq recorded a net non-cash tax charge of $19 million as a valuation allowance against deferred tax assets related to its U.S. operations. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. Third quarter 2015 tax expense was $22 million, which includes the discrete impact of establishing a full valuation allowance against U.S net deferred tax assets. The establishment of a valuation allowance does not impact cash flows, nor does Epiq expect it to preclude the use of loss carryforwards or other deferred tax assets in the future, including the expected realization of approximately $23 million related to the April 2015 acquisition of Iris Data Services.

  2015 Financial Guidance Update

  Based on Epiq's current assessment, the Company is updating full year 2015 operating revenue to range between $495 million and $505 million, adjusted EBITDA between $105 million to $108 million and adjusted EPS between $0.82 and $0.85.

  Management will provide a more detailed discussion of its 2015 outlook and a general 2016 outlook during the earnings conference call today at 4:30 p.m. ET (3:30 p.m. CT).

  CONFERENCE CALL INFORMATION
  Call Dial in:	(877) 303-6311 or (631) 813-4730
  Webcast URL:	http://www.epiqsystems.com/investors/corporate-overview/
  Audio replay:	(855) 859-2056, ID# 59972387, available through Nov. 10, 2015

  About Epiq Systems

  Epiq Systems is a leading global provider of integrated technology solutions for the legal profession, including electronic discovery, bankruptcy, and class action and mass tort administration. We offer full-service capabilities to support litigation, investigations, financial transactions, regulatory compliance and other legal matters. Our innovative technology and services, deep subject-matter expertise and global presence spanning 45 countries served from 20 locations allow us to provide secure, reliable solutions to the worldwide legal community. Visit us at www.epiqsystems.com.

  Use of Non-GAAP Financial Measures

  This press release includes the following non-GAAP financial measures: (i) adjusted net income (net income adjusted for amortization of acquisition intangibles, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, loan fee amortization, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and the effect of tax adjustments that are outside of Epiq Systems' anticipated effective tax rate, all net of tax), (ii) adjusted earnings per share, calculated as adjusted net income on a fully diluted per share basis, and (iii) adjusted EBITDA (net income adjusted for depreciation and amortization, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, net expense related to financing, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and provision for (benefit from) income taxes). Income taxes typically represent a complex element of a company's income statement and effective tax rates can vary widely between different periods. Epiq Systems uses an approximate statutory tax rate of 40% to reflect income tax effects in the presentation of its adjusted net income and adjusted net income per share. Utilization of an approximate statutory tax rate for presentation of the non-GAAP measures is done to allow a consistent basis for investors to understand financial performance of the company across historical periods.

  Although Epiq Systems reports its results using GAAP, Epiq Systems also uses non-GAAP financial measures when management believes those measures provide useful information for its shareholders. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations and to allow a comparison with other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. Certain items are excluded from these non-GAAP financial measures to provide additional comparability measures from period to period. These non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. These non-GAAP financial measures are reconciled in the accompanying tables to the most directly comparable measures as reported in accordance with GAAP, and should be viewed in addition to, and not in lieu of, such comparable financial measures.

  Forward-looking and Cautionary Statements

  This press release includes forward-looking statements. These forward-looking statements include, but are not limited to any projection or expectation of earnings, revenue or other financial items; the plans, strategies and objectives of management for future operations; factors that may affect our operating results; new products or services; the demand for our products and services; our ability to consummate acquisitions, successfully integrate them into our operations and achieve expected synergies; future capital expenditures; effects of current or future economic conditions or performance; industry trends and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. These forward-looking statements are based on our current expectations. In this press release, we make statements that plan for or anticipate the future. Forward-looking statements may be identified by words or phrases such as "believe," "expect," "anticipate," "should," "planned," "may," "estimated," "goal," "objective," "seeks," and "potential" and variations of these words and similar expressions or negatives of these words. Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, provide a "safe harbor" for forward-looking statements. Because forward-looking statements involve future risks and uncertainties, listed below are a variety of factors that could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. These factors include (1) failure to keep pace with technological changes and significant changes in the competitive environment, (2) risks associated with cyber-attacks, interruptions or delays in services at data centers, (3) risks of errors or failures of software or services, (4) interruptions or delays in service at data centers we utilize for delivery of our services, (5) undetected errors in, and failure of operation of, software products releases, (6) our reliance on third-party hardware and software, (7) failure of our financial, operating and information systems to operate as intended, (8) our inability to attract, develop and retain executives and other qualified employees, (9) risks associated with the integration of acquisitions into our existing business operations, (10) risks associated with our international operations, (11) lack of protection of our intellectual property through patents and formal copyright registration, (12) risks of litigation against us for infringement of proprietary rights, (13) material changes in the number of bankruptcy filings, class action filings or mass tort actions each year, or changes in government legislation or court rules affecting these filings, (14) any material non-cash write-downs based on impairment of our goodwill, (15) fluctuations in our quarterly results that could cause fluctuations in the market price of our common stock, (16) our inability to maintain compliance with debt covenant ratios, (17) risks associated with indebtedness and interest rate fluctuations, (18) risks associated with provisions of our articles of incorporation that prevent a takeover of Epiq, (19) overall strength and stability of general economic conditions, both in the United States and in the global markets, (20) the impact of our current review process of strategic alternatives, and (21) other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. In addition, there may be other factors not included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

   

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Unaudited)
  (In thousands, except per share data)
  	Three Months Ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  REVENUE:
  Operating revenue	$131,325	$103,955	$369,637	$335,626
  Reimbursable expenses	11,210	7,051	29,936	23,707
  Total Revenue	142,535	111,006	399,573	359,333
  OPERATING EXPENSE:
  Direct cost of operating revenue (exclusive of depreciation and amortization shown separately below)	64,420	48,193	183,350	163,361
  Reimbursable expenses	10,712	6,827	28,506	23,064
  Selling, general and administrative expense	42,267	35,332	126,104	125,870
  Depreciation and software and leasehold amortization	9,787	9,693	28,050	27,648
  Amortization of identifiable intangible assets	5,831	3,184	13,326	9,470
  Impairment of goodwill and identifiable intangible assets	--	--	1,162	--
  Fair value adjustment to contingent consideration	19	--	(1,182)	1,142
  Other operating expense, net	1,308	215	4,306	792
  Total Operating Expense	134,344	103,444	383,622	351,347
  OPERATING INCOME	8,191	7,562	15,951	7,986
  INTEREST EXPENSE (INCOME):
  Interest expense	5,374	3,945	15,083	12,674
  Interest income	(17)	(4)	(22)	(17)
  Net Interest Expense	5,357	3,941	15,061	12,657
  INCOME (LOSS) BEFORE INCOME TAXES	2,834	3,621	890	(4,671)
  PROVISION FOR (BENEFIT FROM) INCOME TAXES	22,014	(1,389)	21,578	(3,964)
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  NET INCOME (LOSS) PER COMMON SHARE INFORMATION:
  Basic	($0.52)	$0.14	($0.57)	($0.02)
  Diluted	($0.52)	$0.14	($0.57)	($0.02)
  WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
  Basic	36,706	35,780	36,509	35,339
  Diluted	36,706	36,288	36,509	35,339
  Cash dividends declared per common share	$0.09	$0.09	$0.27	$0.27

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED BALANCE SHEETS
  (Unaudited)
  (In thousands)
  	September 30,	December 31,
  	2015	2014
  ASSETS:
  Cash and cash equivalents	$12,616	$54,226
  Trade accounts receivable, net	146,260	117,854
  Property and equipment, net	80,493	70,579
  Internally developed software, net	15,742	14,713
  Goodwill	478,773	404,187
  Other intangibles, net	49,964	29,605
  Other	42,658	47,088
  Total Assets	$826,506	$738,252
  LIABILITIES:
  Current liabilities, excluding debt	$59,469	$53,395
  Indebtedness	398,925	313,481
  Other non-current liabilities	67,754	46,439
  Total Equity	300,358	324,937
  Total Liabilities and Equity	$826,506	$738,252

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  (Unaudited)
  (In thousands)
  	Nine Months Ended
  	September 30,
  	2015	2014
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss	($20,688)	($707)
  Non-cash adjustments to loss:
  Depreciation and amortization	41,376	37,118
  Other, net	37,357	7,445
  Changes in operating assets and liabilities, net
  Trade accounts receivable	(13,413)	11,469
  Other, net	2,164	(17,961)
  Net cash provided by operating activities	46,796	37,364
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Property and equipment; and internally developed software	(22,449)	(28,815)
  Cash paid for business acquisitions, net of cash acquired	(124,550)	(302)
  Other	110	597
  Net cash used in investing activities	(146,889)	(28,520)
  CASH FLOWS FROM FINANCING ACTIVITIES:
  Net change in indebtedness	71,042	(8,942)
  Common stock repurchases	(4,151)	(3,982)
  Cash dividends paid	(9,929)	(9,544)
  Payment of acquisition-related liabilities	(92)	(4,963)
  Debt issuance costs	(1,681)	(837)
  Other, net	3,760	11,356
  Net cash provided by (used in) financing activities	58,949	(16,912)
  Effect of exchange rate changes on cash	(466)	(137)
  NET DECREASE IN CASH AND CASH EQUIVALENTS	($41,610)	($8,205)

  EPIQ SYSTEMS, INC.
  RECONCILIATION OF NET INCOME (LOSS)
  TO ADJUSTED EBITDA
  (Unaudited)
  (In thousands)
  	Three Months Ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  Plus:
  Depreciation and amortization expense	15,619	12,877	41,375	37,118
  Share-based compensation expense	3,557	703	10,483	4,979
  Intangible asset impairment expense	--	--	1,162	--
  Acquisition and related expense (1)	1,325	454	3,240	2,254
  One-time technology expense (2)	--	639	--	4,284
  Expense related to financing, net (3)	5,331	3,788	14,825	12,425
  Litigation (recovery) expense, net (4)	29	12	(475)	1,581
  Timing of recognition of expense (5)	--	--	(290)	--
  Reorganization expense (6)	479	1,230	2,451	13,152
  (Gain) Loss on disposition of assets	--	(175)	(13)	176
  Strategic review expense	530	527	2,209	527
  Provision for (benefit from) income taxes	22,014	(1,389)	21,578	(3,964)
  	48,884	18,666	96,545	72,532
  ADJUSTED EBITDA	$29,704	$23,676	$75,857	$71,825
  (1) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration.
  (2) One-time technology related costs associated with security and consolidation of data centers from acquisitions.
  (3) Expense related to financing is net of interest income.
  (4) Litigation expense and recovery related to significant one-time matters.
  (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters.
  (6) Expenses primarily related to one-time charges for post-employment benefits.

  EPIQ SYSTEMS, INC.
  RECONCILIATION OF NET INCOME (LOSS)
  TO ADJUSTED NET INCOME
  (Unaudited)
  (In thousands, except per share data)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  Plus (net of tax) (1) :
  Amortization of acquisition intangibles	3,499	1,910	7,996	5,682
  Share-based compensation	2,134	421	6,290	2,987
  Intangible asset impairment expense	--	--	697	--
  Acquisition and related expense (2)	795	304	1,970	1,453
  One-time technology expense (3)	--	383	--	2,570
  Loan fee amortization and write-off	279	217	1,272	1,117
  Litigation (recovery) expense, net (4)	17	150	(7)	1,375
  Timing of recognition of expense (5)	--	--	(174)	--
  Reorganization expense (6)	287	738	1,470	7,891
  (Gain) Loss on disposition of assets	--	(104)	(8)	106
  Strategic review expense	318	316	1,325	316
  Effective tax rate adjustment (7)	20,882	(2,837)	21,222	(2,095)
  	28,211	1,498	42,053	21,402
  ADJUSTED NET INCOME	$9,031	$6,508	$21,365	$20,695
  ADJUSTED EARNINGS PER SHARE – DILUTED	$0.24	$0.18	$0.58	$0.59
  (1) Individual adjustments are calculated using a tax rate of 40%.
  (2) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration.
  (3) One-time technology related costs associated with security and consolidation of data centers from acquisitions.
  (4) Litigation expense or recovery related to significant one-time matters.
  (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters.
  (6) Expenses primarily related to one-time charges for post-employment benefits.
  (7) The effective tax rate adjustment reflects a non-GAAP provision for income taxes at a tax rate of 40%.

  EPIQ SYSTEMS, INC.
  OPERATING REVENUE
  (Unaudited)
  (In thousands)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  Technology	$91,847	$69,139	$255,029	$228,831
  Bankruptcy	21,047	20,538	58,758	61,793
  Settlement Administration	18,431	14,278	55,850	45,002
  Total Bankruptcy and Settlement Administration	39,478	34,816	114,608	106,795
  TOTAL OPERATING REVENUE	$131,325	$103,955	$369,637	$335,626

  EPIQ SYSTEMS, INC.
  ADJUSTED EBITDA
  (Unaudited)
  (In thousands)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  Technology	$26,308	$20,487	$68,559	$63,322
  Bankruptcy and Settlement Administration	13,938	12,675	36,119	38,529
  Unallocated Corporate (1)	(10,542)	(9,486)	(28,821)	(30,026)
  TOTAL ADJUSTED EBITDA	$29,704	$23,676	$75,857	$71,825
  (1) Unallocated corporate adjusted EBITDA excludes expenses related to share-based compensation, impairment expense related to acquired intangible assets, acquisition and related expense, including fair value adjustments to contingent consideration, one-time technology expense, non-routine litigation expense or recovery, timing of recognition of expense, gain or loss on disposition of assets, strategic review expense, and one-time reorganization expense.

  EPIQ SYSTEMS, INC.
  CALCULATION OF NET LOSS PER SHARE AND
  DILUTED ADJUSTED EARNINGS PER SHARE
  (Unaudited)
  (In thousands, except per share data)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  BASIC WEIGHTED AVERAGE SHARES	36,706	35,780	36,509	35,339
  Adjustment to reflect share-based awards	--	508	--	--
  DILUTED WEIGHTED AVERAGE SHARES	36,706	36,288	36,509	35,339
  NET INCOME (LOSS) PER SHARE – DILUTED	($0.52)	$0.14	($0.57)	($0.02)
  ADJUSTED NET INCOME	$9,031	$6,508	$21,365	$20,695
  BASIC WEIGHTED AVERAGE SHARES	36,706	35,780	36,509	35,339
  Adjustment to reflect share-based awards	349	508	486	--
  DILUTED WEIGHTED AVERAGE SHARES(1)	37,055	36,288	36,995	35,339
  ADJUSTED EARNINGS PER SHARE - DILUTED	$0.24	$0.18	$0.58	$0.59
  (1)  Diluted weighted average shares outstanding for the three and nine months ended September 30, 2015 and 2014 include the dilutive impact of share-based awards due to adjusted net income reported for the respective periods.

  CONTACT: Investor Contacts Kelly Bailey Epiq Systems 913-621-9500 ir@epiqsystems.com Chris Eddy Catalyst Global 212-924-9800 epiq@catalyst-ir.com

  Full ArticleVisit Website

• Epiq Systems Reports Third Quarter 2015 Results and Updates Fiscal Year 2015 Outlook

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  KANSAS CITY, Kan., Nov. 3, 2015 (GLOBE NEWSWIRE) -- Epiq Systems, Inc. (NASDAQ:EPIQ), a leading global provider of integrated technology solutions for the legal profession, today announced results for its third quarter ended September 30, 2015 and updated its full year financial outlook for 2015. Epiq will hold a conference call today at 4:30 pm ET to review its results (details below).

  Summary Results (Unaudited)
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions, except share count and per share data)	2015	2014	2015	2014
  Segment Operating Revenue
  Technology	$91.8	$69.1	$255.0	$228.8
  Bankruptcy & Settlement Administration	$39.5	$34.8	$114.6	$106.8
  Total Operating Revenue	$131.3	$103.9	$369.6	$335.6
  Net Income (Loss)(1)	($19.2)	$5.0	($20.7)	($0.7)
  Net Income (Loss) Per Diluted Share(1)	($0.52)	$0.14	($0.57)	($0.02)
  Adjusted EBITDA(2)	$29.7	$23.7	$75.9	$71.8
  Adjusted Net Income(2)	$9.0	$6.5	$21.4	$20.7
  Adjusted Earnings Per Diluted Share(2)	$0.24	$0.18	$0.58	$0.59
  Adjusted Diluted Shares (in thousands)	37,055	36,288	36,995	35,339
  Net Cash from Operating Activities	$18.9	$18.6	$46.8	$37.4
  (1) Includes impact of a GAAP net non-cash tax charge of $19.0 million related to establishing a full valuation allowance against U.S. deferred tax assets. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. The valuation allowance is included in "Provision for (benefit from) income taxes" in the Condensed Consolidated Statements of Operations.
  (2) Adjusted net income, adjusted EBITDA and adjusted earnings per share are all non-GAAP financial measures. See the accompanying tables herein for information regarding these measures and reconciliation to the most comparable GAAP measure.

  Q3 Financial Overview

  Third quarter 2015 operating revenue increased 26%, or 16% excluding operating revenue from recently acquired Iris Data Services, compared to the third quarter 2014 driven by both of Epiq's operating segments. Technology segment operating revenues increased 33%, or 17% excluding operating revenue from Iris, compared to the prior year quarter while Bankruptcy and Settlement Administration operating revenue increased 14%. Consolidated adjusted EBITDA increased 25% from $23.7 million in the third quarter 2014 and rose 20% from $24.7 million in Q2 2015 and 39% from $21.4 million in Q1 2015. Quarterly adjusted EPS of $0.24 per diluted share increased 33% compared to the prior year quarter and rose 33% from $0.18 in Q2 2015 and 60% from $0.15 in Q1 2015.

  Recent Company Highlights

  • Launch of a full-service eDiscovery office in Frankfurt, including managed services through Iris Data Services, a comprehensive document review center, and data processing and hosting in a world-class data center.
     
  • Retained as call center provider to support the U.S. Office of Personnel Management's (OPM) response to cybersecurity incidents earlier this year impacting 21.5 million individuals.
     
  • Recently elected independent directors, Kevin L. Robert and Douglas M. Gaston, have been newly appointed as chairs of the Audit Committee and Compensation Committee, respectively, and the Board of Directors is exploring the addition of new independent directors.
     
  • Declared dividend of $0.09 per share, Epiq's 22^nd consecutive quarterly dividend, payable November 16, 2015 to shareholders of record at the close of business October 15, 2015.

  "Epiq delivered a strong quarter of growth in operating revenue, adjusted EBITDA and adjusted EPS reflecting both organic growth and the first full quarter of Iris Data Services revenue as we finalize the integration of that organization into Epiq's global footprint. We see Iris's leading managed services offering being a key part of our eDiscovery growth strategy and market differentiation," said Tom W. Olofson, chairman and CEO, Epiq Systems.

  "Epiq continues to be a preferred strategic partner for complex legal matters. The pace of data breaches, regulatory investigations and a healthy environment for corporate M&A provide favorable indicators of global demand for our services. While Epiq continues to gain market share and achieve revenue growth, we are very focused on improving margins and profitability in 2015. We have identified and are implementing a range of initiatives to better leverage our global resources, optimize efficiency and improve our cost structure."

  Segment Review 

  Technology Segment (eDiscovery)
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions)(Unaudited)	2015	2014	2015	2014
  Operating Revenue	$91.8	$69.1	$255.0	$228.8
  Adjusted EBITDA	$26.3	$20.5	$68.6	$63.3
  Operating Revenue Mix
  By Service Type
  Electronically Stored Information (ESI)	62%	63%	60%	57%
  Document Review	38%	37%	40%	43%
  By Region
  North America	78%	74%	78%	80%
  Europe and Asia	22%	26%	22%	20%

  Epiq's Technology segment provides integrated technology solutions for electronic discovery (eDiscovery), including global electronically stored information (ESI, which includes Iris eDiscovery managed services) and global document review. Revenue growth within Technology (excluding Iris) was 17% for the third quarter and 33% for the segment including Iris. Operating revenue from international eDiscovery increased by $2.4 million compared to the prior year quarter reflecting growth in both document review and ESI service revenues from new and existing clients. On a pro forma basis and excluding Iris Data Services, international eDiscovery represented 25% of Technology segment operating revenue compared to 26% in the prior year quarter. While pricing pressure in North American ESI services continued to impact operating margins, Technology segment adjusted EBITDA increased 28% compared to the third quarter 2014 primarily due to increased demand for ESI and document review services worldwide in addition to initiatives to drive cost control and increased efficiency.

  Bankruptcy and Settlement Administration Segment
  	Three months ended Sept. 30		Nine months ended Sept. 30
  (In millions)(Unaudited)	2015	2014	2015	2014
  Operating Revenue	$39.5	$34.8	$114.6	$106.8
  Adjusted EBITDA	$13.9	$12.7	$36.1	$38.5

  Bankruptcy and Settlement Administration segment third quarter operating revenue increased 14% compared to the prior year period, driven primarily by 29% growth in Settlement Administration. A low level of Chapter 11 bankruptcy filings persisted in the third quarter, a trend that is expected to continue for the remainder of 2015. Epiq continues to secure non-traditional work and ongoing projects from current clients to supplement operating revenue in this segment. Segment Adjusted EBITDA increased 9% from the prior year quarter due to increased revenue from Settlement Administration services and activity from existing Bankruptcy engagements and non-traditional clients.

  GAAP Non-Cash Tax Charge

  For the third quarter 2015, Epiq recorded a net non-cash tax charge of $19 million as a valuation allowance against deferred tax assets related to its U.S. operations. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. Third quarter 2015 tax expense was $22 million, which includes the discrete impact of establishing a full valuation allowance against U.S net deferred tax assets. The establishment of a valuation allowance does not impact cash flows, nor does Epiq expect it to preclude the use of loss carryforwards or other deferred tax assets in the future, including the expected realization of approximately $23 million related to the April 2015 acquisition of Iris Data Services.

  2015 Financial Guidance Update

  Based on Epiq's current assessment, the Company is updating full year 2015 operating revenue to range between $495 million and $505 million, adjusted EBITDA between $105 million to $108 million and adjusted EPS between $0.82 and $0.85.

  Management will provide a more detailed discussion of its 2015 outlook and a general 2016 outlook during the earnings conference call today at 4:30 p.m. ET (3:30 p.m. CT).

  CONFERENCE CALL INFORMATION
  Call Dial in:	(877) 303-6311 or (631) 813-4730
  Webcast URL:	http://www.epiqsystems.com/investors/corporate-overview/
  Audio replay:	(855) 859-2056, ID# 59972387, available through Nov. 10, 2015

  About Epiq Systems

  Epiq Systems is a leading global provider of integrated technology solutions for the legal profession, including electronic discovery, bankruptcy, and class action and mass tort administration. We offer full-service capabilities to support litigation, investigations, financial transactions, regulatory compliance and other legal matters. Our innovative technology and services, deep subject-matter expertise and global presence spanning 45 countries served from 20 locations allow us to provide secure, reliable solutions to the worldwide legal community. Visit us at www.epiqsystems.com.

  Use of Non-GAAP Financial Measures

  This press release includes the following non-GAAP financial measures: (i) adjusted net income (net income adjusted for amortization of acquisition intangibles, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, loan fee amortization, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and the effect of tax adjustments that are outside of Epiq Systems' anticipated effective tax rate, all net of tax), (ii) adjusted earnings per share, calculated as adjusted net income on a fully diluted per share basis, and (iii) adjusted EBITDA (net income adjusted for depreciation and amortization, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, net expense related to financing, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and provision for (benefit from) income taxes). Income taxes typically represent a complex element of a company's income statement and effective tax rates can vary widely between different periods. Epiq Systems uses an approximate statutory tax rate of 40% to reflect income tax effects in the presentation of its adjusted net income and adjusted net income per share. Utilization of an approximate statutory tax rate for presentation of the non-GAAP measures is done to allow a consistent basis for investors to understand financial performance of the company across historical periods.

  Although Epiq Systems reports its results using GAAP, Epiq Systems also uses non-GAAP financial measures when management believes those measures provide useful information for its shareholders. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations and to allow a comparison with other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. Certain items are excluded from these non-GAAP financial measures to provide additional comparability measures from period to period. These non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. These non-GAAP financial measures are reconciled in the accompanying tables to the most directly comparable measures as reported in accordance with GAAP, and should be viewed in addition to, and not in lieu of, such comparable financial measures.

  Forward-looking and Cautionary Statements

  This press release includes forward-looking statements. These forward-looking statements include, but are not limited to any projection or expectation of earnings, revenue or other financial items; the plans, strategies and objectives of management for future operations; factors that may affect our operating results; new products or services; the demand for our products and services; our ability to consummate acquisitions, successfully integrate them into our operations and achieve expected synergies; future capital expenditures; effects of current or future economic conditions or performance; industry trends and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. These forward-looking statements are based on our current expectations. In this press release, we make statements that plan for or anticipate the future. Forward-looking statements may be identified by words or phrases such as "believe," "expect," "anticipate," "should," "planned," "may," "estimated," "goal," "objective," "seeks," and "potential" and variations of these words and similar expressions or negatives of these words. Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, provide a "safe harbor" for forward-looking statements. Because forward-looking statements involve future risks and uncertainties, listed below are a variety of factors that could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. These factors include (1) failure to keep pace with technological changes and significant changes in the competitive environment, (2) risks associated with cyber-attacks, interruptions or delays in services at data centers, (3) risks of errors or failures of software or services, (4) interruptions or delays in service at data centers we utilize for delivery of our services, (5) undetected errors in, and failure of operation of, software products releases, (6) our reliance on third-party hardware and software, (7) failure of our financial, operating and information systems to operate as intended, (8) our inability to attract, develop and retain executives and other qualified employees, (9) risks associated with the integration of acquisitions into our existing business operations, (10) risks associated with our international operations, (11) lack of protection of our intellectual property through patents and formal copyright registration, (12) risks of litigation against us for infringement of proprietary rights, (13) material changes in the number of bankruptcy filings, class action filings or mass tort actions each year, or changes in government legislation or court rules affecting these filings, (14) any material non-cash write-downs based on impairment of our goodwill, (15) fluctuations in our quarterly results that could cause fluctuations in the market price of our common stock, (16) our inability to maintain compliance with debt covenant ratios, (17) risks associated with indebtedness and interest rate fluctuations, (18) risks associated with provisions of our articles of incorporation that prevent a takeover of Epiq, (19) overall strength and stability of general economic conditions, both in the United States and in the global markets, (20) the impact of our current review process of strategic alternatives, and (21) other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. In addition, there may be other factors not included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

   

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Unaudited)
  (In thousands, except per share data)
  	Three Months Ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  REVENUE:
  Operating revenue	$131,325	$103,955	$369,637	$335,626
  Reimbursable expenses	11,210	7,051	29,936	23,707
  Total Revenue	142,535	111,006	399,573	359,333
  OPERATING EXPENSE:
  Direct cost of operating revenue (exclusive of depreciation and amortization shown separately below)	64,420	48,193	183,350	163,361
  Reimbursable expenses	10,712	6,827	28,506	23,064
  Selling, general and administrative expense	42,267	35,332	126,104	125,870
  Depreciation and software and leasehold amortization	9,787	9,693	28,050	27,648
  Amortization of identifiable intangible assets	5,831	3,184	13,326	9,470
  Impairment of goodwill and identifiable intangible assets	--	--	1,162	--
  Fair value adjustment to contingent consideration	19	--	(1,182)	1,142
  Other operating expense, net	1,308	215	4,306	792
  Total Operating Expense	134,344	103,444	383,622	351,347
  OPERATING INCOME	8,191	7,562	15,951	7,986
  INTEREST EXPENSE (INCOME):
  Interest expense	5,374	3,945	15,083	12,674
  Interest income	(17)	(4)	(22)	(17)
  Net Interest Expense	5,357	3,941	15,061	12,657
  INCOME (LOSS) BEFORE INCOME TAXES	2,834	3,621	890	(4,671)
  PROVISION FOR (BENEFIT FROM) INCOME TAXES	22,014	(1,389)	21,578	(3,964)
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  NET INCOME (LOSS) PER COMMON SHARE INFORMATION:
  Basic	($0.52)	$0.14	($0.57)	($0.02)
  Diluted	($0.52)	$0.14	($0.57)	($0.02)
  WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
  Basic	36,706	35,780	36,509	35,339
  Diluted	36,706	36,288	36,509	35,339
  Cash dividends declared per common share	$0.09	$0.09	$0.27	$0.27

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED BALANCE SHEETS
  (Unaudited)
  (In thousands)
  	September 30,	December 31,
  	2015	2014
  ASSETS:
  Cash and cash equivalents	$12,616	$54,226
  Trade accounts receivable, net	146,260	117,854
  Property and equipment, net	80,493	70,579
  Internally developed software, net	15,742	14,713
  Goodwill	478,773	404,187
  Other intangibles, net	49,964	29,605
  Other	42,658	47,088
  Total Assets	$826,506	$738,252
  LIABILITIES:
  Current liabilities, excluding debt	$59,469	$53,395
  Indebtedness	398,925	313,481
  Other non-current liabilities	67,754	46,439
  Total Equity	300,358	324,937
  Total Liabilities and Equity	$826,506	$738,252

  EPIQ SYSTEMS, INC.
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  (Unaudited)
  (In thousands)
  	Nine Months Ended
  	September 30,
  	2015	2014
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss	($20,688)	($707)
  Non-cash adjustments to loss:
  Depreciation and amortization	41,376	37,118
  Other, net	37,357	7,445
  Changes in operating assets and liabilities, net
  Trade accounts receivable	(13,413)	11,469
  Other, net	2,164	(17,961)
  Net cash provided by operating activities	46,796	37,364
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Property and equipment; and internally developed software	(22,449)	(28,815)
  Cash paid for business acquisitions, net of cash acquired	(124,550)	(302)
  Other	110	597
  Net cash used in investing activities	(146,889)	(28,520)
  CASH FLOWS FROM FINANCING ACTIVITIES:
  Net change in indebtedness	71,042	(8,942)
  Common stock repurchases	(4,151)	(3,982)
  Cash dividends paid	(9,929)	(9,544)
  Payment of acquisition-related liabilities	(92)	(4,963)
  Debt issuance costs	(1,681)	(837)
  Other, net	3,760	11,356
  Net cash provided by (used in) financing activities	58,949	(16,912)
  Effect of exchange rate changes on cash	(466)	(137)
  NET DECREASE IN CASH AND CASH EQUIVALENTS	($41,610)	($8,205)

  EPIQ SYSTEMS, INC.
  RECONCILIATION OF NET INCOME (LOSS)
  TO ADJUSTED EBITDA
  (Unaudited)
  (In thousands)
  	Three Months Ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  Plus:
  Depreciation and amortization expense	15,619	12,877	41,375	37,118
  Share-based compensation expense	3,557	703	10,483	4,979
  Intangible asset impairment expense	--	--	1,162	--
  Acquisition and related expense (1)	1,325	454	3,240	2,254
  One-time technology expense (2)	--	639	--	4,284
  Expense related to financing, net (3)	5,331	3,788	14,825	12,425
  Litigation (recovery) expense, net (4)	29	12	(475)	1,581
  Timing of recognition of expense (5)	--	--	(290)	--
  Reorganization expense (6)	479	1,230	2,451	13,152
  (Gain) Loss on disposition of assets	--	(175)	(13)	176
  Strategic review expense	530	527	2,209	527
  Provision for (benefit from) income taxes	22,014	(1,389)	21,578	(3,964)
  	48,884	18,666	96,545	72,532
  ADJUSTED EBITDA	$29,704	$23,676	$75,857	$71,825
  (1) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration.
  (2) One-time technology related costs associated with security and consolidation of data centers from acquisitions.
  (3) Expense related to financing is net of interest income.
  (4) Litigation expense and recovery related to significant one-time matters.
  (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters.
  (6) Expenses primarily related to one-time charges for post-employment benefits.

  EPIQ SYSTEMS, INC.
  RECONCILIATION OF NET INCOME (LOSS)
  TO ADJUSTED NET INCOME
  (Unaudited)
  (In thousands, except per share data)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  Plus (net of tax) (1) :
  Amortization of acquisition intangibles	3,499	1,910	7,996	5,682
  Share-based compensation	2,134	421	6,290	2,987
  Intangible asset impairment expense	--	--	697	--
  Acquisition and related expense (2)	795	304	1,970	1,453
  One-time technology expense (3)	--	383	--	2,570
  Loan fee amortization and write-off	279	217	1,272	1,117
  Litigation (recovery) expense, net (4)	17	150	(7)	1,375
  Timing of recognition of expense (5)	--	--	(174)	--
  Reorganization expense (6)	287	738	1,470	7,891
  (Gain) Loss on disposition of assets	--	(104)	(8)	106
  Strategic review expense	318	316	1,325	316
  Effective tax rate adjustment (7)	20,882	(2,837)	21,222	(2,095)
  	28,211	1,498	42,053	21,402
  ADJUSTED NET INCOME	$9,031	$6,508	$21,365	$20,695
  ADJUSTED EARNINGS PER SHARE – DILUTED	$0.24	$0.18	$0.58	$0.59
  (1) Individual adjustments are calculated using a tax rate of 40%.
  (2) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration.
  (3) One-time technology related costs associated with security and consolidation of data centers from acquisitions.
  (4) Litigation expense or recovery related to significant one-time matters.
  (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters.
  (6) Expenses primarily related to one-time charges for post-employment benefits.
  (7) The effective tax rate adjustment reflects a non-GAAP provision for income taxes at a tax rate of 40%.

  EPIQ SYSTEMS, INC.
  OPERATING REVENUE
  (Unaudited)
  (In thousands)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  Technology	$91,847	$69,139	$255,029	$228,831
  Bankruptcy	21,047	20,538	58,758	61,793
  Settlement Administration	18,431	14,278	55,850	45,002
  Total Bankruptcy and Settlement Administration	39,478	34,816	114,608	106,795
  TOTAL OPERATING REVENUE	$131,325	$103,955	$369,637	$335,626

  EPIQ SYSTEMS, INC.
  ADJUSTED EBITDA
  (Unaudited)
  (In thousands)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  Technology	$26,308	$20,487	$68,559	$63,322
  Bankruptcy and Settlement Administration	13,938	12,675	36,119	38,529
  Unallocated Corporate (1)	(10,542)	(9,486)	(28,821)	(30,026)
  TOTAL ADJUSTED EBITDA	$29,704	$23,676	$75,857	$71,825
  (1) Unallocated corporate adjusted EBITDA excludes expenses related to share-based compensation, impairment expense related to acquired intangible assets, acquisition and related expense, including fair value adjustments to contingent consideration, one-time technology expense, non-routine litigation expense or recovery, timing of recognition of expense, gain or loss on disposition of assets, strategic review expense, and one-time reorganization expense.

  EPIQ SYSTEMS, INC.
  CALCULATION OF NET LOSS PER SHARE AND
  DILUTED ADJUSTED EARNINGS PER SHARE
  (Unaudited)
  (In thousands, except per share data)
  	Three months ended		Nine Months Ended
  	September 30,		September 30,
  	2015	2014	2015	2014
  NET INCOME (LOSS)	($19,180)	$5,010	($20,688)	($707)
  BASIC WEIGHTED AVERAGE SHARES	36,706	35,780	36,509	35,339
  Adjustment to reflect share-based awards	--	508	--	--
  DILUTED WEIGHTED AVERAGE SHARES	36,706	36,288	36,509	35,339
  NET INCOME (LOSS) PER SHARE – DILUTED	($0.52)	$0.14	($0.57)	($0.02)
  ADJUSTED NET INCOME	$9,031	$6,508	$21,365	$20,695
  BASIC WEIGHTED AVERAGE SHARES	36,706	35,780	36,509	35,339
  Adjustment to reflect share-based awards	349	508	486	--
  DILUTED WEIGHTED AVERAGE SHARES(1)	37,055	36,288	36,995	35,339
  ADJUSTED EARNINGS PER SHARE - DILUTED	$0.24	$0.18	$0.58	$0.59
  (1)  Diluted weighted average shares outstanding for the three and nine months ended September 30, 2015 and 2014 include the dilutive impact of share-based awards due to adjusted net income reported for the respective periods.

  CONTACT: Investor Contacts Kelly Bailey Epiq Systems 913-621-9500 ir@epiqsystems.com Chris Eddy Catalyst Global 212-924-9800 epiq@catalyst-ir.com

  Full ArticleVisit Website

• PCG Software Releases Primer on the Coding Modifier 59 Subset: XE, XP, XS and XU

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  LAS VEGAS, Nov. 03, 2015 (GLOBE NEWSWIRE) -- PCG Software (PCG), a leading provider of software solutions designed to slow the escalating costs of healthcare, today announced the public release of a new primer document designed to provide guidance on the four new Healthcare Common Procedure Coding System (HCPCS) modifiers to define subsets of modifier 59 that The Centers for Medicare & Medicaid Services (CMS) established.
  

  The educational resource, “A Primer on the Coding Modifier 59 Subset: XE, XP, XS and XU,” offers insight and tips into how to use each of the new modifiers that became effective January 1, 2015 and were developed to provide greater reporting specificity in situations where modifier 59 was previously reported and may be utilized in lieu of modifier 59 whenever possible.

  “Modifier 59 is the most commonly used and abused modifier for Medicare reimbursement of CPT codes in acupuncture, breast biopsies, physical therapy, radiology, surgery and other medical practices. It often causes incorrect payments – triggering audits, fraud, waste and abuse (FWA) cases and escalating costs for everyone,” said Andria Jacobs, RN, MS, CEN, CPHQ, chief operating officer of PCG Software. “The new codes were designed to be more descriptive, precise and reduce errors, but because there hasn't been clear guidance issued on how to use the new modifiers, the change has caused denied claims, increased costs and frustrated the industry more than necessary. So we felt it incredibly necessary to develop and release this primer document to the industry, as we continue on our mission of reducing the cost of healthcare.”

  Modifier 59 has been used to identify procedures/services that are commonly bundled together but are appropriate to report separately under some circumstances, whereas the XE (Separate Encounter), XP (Separate Practitioner), XS (Separate Structure) and XU (Unusual Non-Overlapping Service) may now be used, together with National Correct Coding Initiative (NCCI) edits, to identify distinct services in the same encounter warranting separate reimbursement. While it encourages migration to the new modifiers, CMS currently allows providers to submit either modifier 59 or the appropriate X modifier to override Correct Coding Initiative (CCI) edits and get paid.

  About PCG Software
  Established in 1984, PCG Software is a leading provider of innovative software solutions designed to slow the escalating costs of healthcare. The company works with healthcare payer organizations to increase profitability and maximize financial recoveries, while assisting their provider partners to improve the accuracy of billing processes.

  The company’s flagship software solution, Virtual Examiner®, enhances claims adjudication systems with more than 30 million edits per claim and uses investigative profiling reports to graphically indicate patterns of fraud and abuse. Through more accurate and efficient claims adjudication, this fraud and abuse prevention software acts as an automated cost containment system for national and regional health insurance plans, independent practice associations and third-party administrators. For more information, visit www.pcgsoftware.com, or follow us on Twitter.

  CONTACT: Press Contact Information:Dave Anderson678-401-2991dave@andersoni.com

  Full ArticleVisit Website

• PCG Software Releases Primer on the Coding Modifier 59 Subset: XE, XP, XS and XU

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  LAS VEGAS, Nov. 03, 2015 (GLOBE NEWSWIRE) -- PCG Software (PCG), a leading provider of software solutions designed to slow the escalating costs of healthcare, today announced the public release of a new primer document designed to provide guidance on the four new Healthcare Common Procedure Coding System (HCPCS) modifiers to define subsets of modifier 59 that The Centers for Medicare & Medicaid Services (CMS) established.
  

  The educational resource, “A Primer on the Coding Modifier 59 Subset: XE, XP, XS and XU,” offers insight and tips into how to use each of the new modifiers that became effective January 1, 2015 and were developed to provide greater reporting specificity in situations where modifier 59 was previously reported and may be utilized in lieu of modifier 59 whenever possible.

  “Modifier 59 is the most commonly used and abused modifier for Medicare reimbursement of CPT codes in acupuncture, breast biopsies, physical therapy, radiology, surgery and other medical practices. It often causes incorrect payments – triggering audits, fraud, waste and abuse (FWA) cases and escalating costs for everyone,” said Andria Jacobs, RN, MS, CEN, CPHQ, chief operating officer of PCG Software. “The new codes were designed to be more descriptive, precise and reduce errors, but because there hasn't been clear guidance issued on how to use the new modifiers, the change has caused denied claims, increased costs and frustrated the industry more than necessary. So we felt it incredibly necessary to develop and release this primer document to the industry, as we continue on our mission of reducing the cost of healthcare.”

  Modifier 59 has been used to identify procedures/services that are commonly bundled together but are appropriate to report separately under some circumstances, whereas the XE (Separate Encounter), XP (Separate Practitioner), XS (Separate Structure) and XU (Unusual Non-Overlapping Service) may now be used, together with National Correct Coding Initiative (NCCI) edits, to identify distinct services in the same encounter warranting separate reimbursement. While it encourages migration to the new modifiers, CMS currently allows providers to submit either modifier 59 or the appropriate X modifier to override Correct Coding Initiative (CCI) edits and get paid.

  About PCG Software
  Established in 1984, PCG Software is a leading provider of innovative software solutions designed to slow the escalating costs of healthcare. The company works with healthcare payer organizations to increase profitability and maximize financial recoveries, while assisting their provider partners to improve the accuracy of billing processes.

  The company’s flagship software solution, Virtual Examiner®, enhances claims adjudication systems with more than 30 million edits per claim and uses investigative profiling reports to graphically indicate patterns of fraud and abuse. Through more accurate and efficient claims adjudication, this fraud and abuse prevention software acts as an automated cost containment system for national and regional health insurance plans, independent practice associations and third-party administrators. For more information, visit www.pcgsoftware.com, or follow us on Twitter.

  CONTACT: Press Contact Information:Dave Anderson678-401-2991dave@andersoni.com

  Full ArticleVisit Website

• Centage Corporation Continues Rapid Growth Driven by Demand for Cloud-Based Budgeting Solutions

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  NATICK, Mass., Nov. 3, 2015 (GLOBE NEWSWIRE) -- Centage™ Corporation, a leading provider of budgeting and forecasting software (Budget Maestro™) for small and medium sized businesses, today announced the company has continued its double digit growth, as market demand for innovative cloud-based budgeting solutions expands. The company's cloud-based Budget Maestro solution has generated five times more revenue in Q3 of this year than for the same period last year. The extraordinary adoption of the cloud platform has also driven a 130% increase in cloud software sales year to date.
  
  Centage remains committed to delivering the financial and operational insight organizations need to improve business performance, and has also garnered independent industry recognition for its efforts.
  
  Notable industry recognition for 2015 include:

  • Awarded Microsoft Gold Competency for application development;
  • Designated a Core Vendor in BPM Partners 2015 BPM Pulse report;
  • Selected as a 2015 Golden Bridge Awards finalist for "Innovation in Business Process Management" with Analytics Maestro and "Best Deployment", based on a successful customer case study with M3 Midstream; and,
  • Named a finalist nominee in CPA Practice Advisor's annual Innovation Awards.

  "Top performing organizations look for solutions that can provide the essential information and process flows needed to effectively and efficiently plan, budget, and forecast", noted Nick Castellina, Senior Research Director, Aberdeen Group. "Part of the solution selection equation is deployment method. Due to cost concerns, easy implementation, and recurring updates, cloud technology has been an attractive alternative to spreadsheets, for organizations that are looking to improve their FP &A processes."
  
  "We have more 7,000 users worldwide across industries including manufacturing, healthcare and non-profit", said Barry Clapp, President & CEO of Centage. "While Budget Maestro's growth has been nearly 30% per year of late, we were constrained by not offering the alternative of cloud access to the product. Since we offered it, adoption and growth has wildly exceeded our expectations. Our customers and market face challenges that demand timely, agile, flexible budgeting, planning and forecasting, and that also enable involvement of a broader number of managers in the process. The budget itself, and financial reports, need to be easily modifiable and should be accessible on whatever technology platform that the customers desire. Adding cloud access continues our mission to make our best in class tool affordable and easy to deploy."
  
  As part of the company's ongoing commitment to ensuring customer success, Centage also introduced a new cloud-based training portal. The Training Center is an extension of the company's "Center of Excellence" program and complements existing educational resources. The complimentary resource for Budget Maestro users is designed to serve as, a study guide for new users, to reinforce what was learned during initial implementation, and as an independent resource for on-demand training.
  For more information on Centage follow us on Twitter @Centage or visit our blog http://centage.com/Blog/.
  
  About Centage
  
  Budget Maestro® by Centage is an easy-to-use, scalable, automated budgeting, planning, and forecasting application. It is designed for small to mid-market companies and automates many of the time-consuming and error-prone activities associated with using spreadsheets to generate accurate budgets and forecasts. It features built in financial and business logic that allow users to build and update their budgets and forecasts and never worry about formulas, functions, links or any custom programming. It is the only solution in the market that offers synchronized P &L, Balance Sheet, and Cash Flow reporting that generate automatically and seamlessly update. Budget Maestro serves more than 7,000 users worldwide. Visit us at www.centage.com. For more information follow us on Twitter @Centage or visit our blog http://blog.centage.com/ for the latest insights on budgeting and forecasting strategies.
  
  Centage and Budget Maestro are registered trademarks of Centage.

  CONTACT: David Winterhalter dwinterhalter@centage.com (508) 948-0088

  Full ArticleVisit Website

• Centage Corporation Continues Rapid Growth Driven by Demand for Cloud-Based Budgeting Solutions

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  NATICK, Mass., Nov. 3, 2015 (GLOBE NEWSWIRE) -- Centage™ Corporation, a leading provider of budgeting and forecasting software (Budget Maestro™) for small and medium sized businesses, today announced the company has continued its double digit growth, as market demand for innovative cloud-based budgeting solutions expands. The company's cloud-based Budget Maestro solution has generated five times more revenue in Q3 of this year than for the same period last year. The extraordinary adoption of the cloud platform has also driven a 130% increase in cloud software sales year to date.
  
  Centage remains committed to delivering the financial and operational insight organizations need to improve business performance, and has also garnered independent industry recognition for its efforts.
  
  Notable industry recognition for 2015 include:

  • Awarded Microsoft Gold Competency for application development;
  • Designated a Core Vendor in BPM Partners 2015 BPM Pulse report;
  • Selected as a 2015 Golden Bridge Awards finalist for "Innovation in Business Process Management" with Analytics Maestro and "Best Deployment", based on a successful customer case study with M3 Midstream; and,
  • Named a finalist nominee in CPA Practice Advisor's annual Innovation Awards.

  "Top performing organizations look for solutions that can provide the essential information and process flows needed to effectively and efficiently plan, budget, and forecast", noted Nick Castellina, Senior Research Director, Aberdeen Group. "Part of the solution selection equation is deployment method. Due to cost concerns, easy implementation, and recurring updates, cloud technology has been an attractive alternative to spreadsheets, for organizations that are looking to improve their FP &A processes."
  
  "We have more 7,000 users worldwide across industries including manufacturing, healthcare and non-profit", said Barry Clapp, President & CEO of Centage. "While Budget Maestro's growth has been nearly 30% per year of late, we were constrained by not offering the alternative of cloud access to the product. Since we offered it, adoption and growth has wildly exceeded our expectations. Our customers and market face challenges that demand timely, agile, flexible budgeting, planning and forecasting, and that also enable involvement of a broader number of managers in the process. The budget itself, and financial reports, need to be easily modifiable and should be accessible on whatever technology platform that the customers desire. Adding cloud access continues our mission to make our best in class tool affordable and easy to deploy."
  
  As part of the company's ongoing commitment to ensuring customer success, Centage also introduced a new cloud-based training portal. The Training Center is an extension of the company's "Center of Excellence" program and complements existing educational resources. The complimentary resource for Budget Maestro users is designed to serve as, a study guide for new users, to reinforce what was learned during initial implementation, and as an independent resource for on-demand training.
  For more information on Centage follow us on Twitter @Centage or visit our blog http://centage.com/Blog/.
  
  About Centage
  
  Budget Maestro® by Centage is an easy-to-use, scalable, automated budgeting, planning, and forecasting application. It is designed for small to mid-market companies and automates many of the time-consuming and error-prone activities associated with using spreadsheets to generate accurate budgets and forecasts. It features built in financial and business logic that allow users to build and update their budgets and forecasts and never worry about formulas, functions, links or any custom programming. It is the only solution in the market that offers synchronized P &L, Balance Sheet, and Cash Flow reporting that generate automatically and seamlessly update. Budget Maestro serves more than 7,000 users worldwide. Visit us at www.centage.com. For more information follow us on Twitter @Centage or visit our blog http://blog.centage.com/ for the latest insights on budgeting and forecasting strategies.
  
  Centage and Budget Maestro are registered trademarks of Centage.

  CONTACT: David Winterhalter dwinterhalter@centage.com (508) 948-0088

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• Johnson Smith Company(TM) Expands Relationship with Yes Lifecycle Marketing

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  CHICAGO, Nov. 3, 2015 (GLOBE NEWSWIRE) -- Yes Lifecycle Marketing, an Infogroup company and multichannel marketing solutions provider, today announced the Johnson Smith Company™ has expanded their relationship with Yes Lifecycle Marketing to include full-service marketing capabilities - analytics, strategy, data and database marketing technology - across their brands.
  
  As one of America's oldest catalog and internet retailers, headquartered in Bradenton, FL, the Johnson Smith Company, relies on Yes Lifecycle Marketing to provide data-driven, actionable insights, and state-of-the-art technology solutions to ensure they are meeting the demands of their customers. By implementing a Marketing Opportunity Diagnosis, Yes Lifecycle Marketing's Agency Services was able to equip the Johnson Smith Company with a comprehensive customer data analysis in order to quantify and fuel revenue growth opportunities.
  
  "Yes Lifecycle Marketing has provided us with the insights and guidance to help lead our business into becoming a better multichannel cataloger," said Johnson Smith Company's, Ellen Pullman, Director of Marketing. "They understand our customers, our business and our vision."
  
  Key reasons the Johnson Smith Company selected Yes Lifecycle Marketing include:

  • Innovative data and analytics solutions
  • Thought Leadership
  • Database marketing expertise
  • Responsiveness and collaboration of the client service team

  "The Johnson Smith Company has long been a household name in cataloging for novelties, gifts and collectibles," said Michael Fisher, president of Yes Lifecycle Marketing. "We are thrilled to be an integral partner as the Johnson Smith Company further evolves into a multichannel marketer."
  
  "Yes Lifecycle Marketing is well positioned to help traditional cataloguers adapt to the multichannel age of marketing," said Mike Iaccarino, CEO and Chairman, of Infogroup. "Our expertise as a services and technology partner gives clients the opportunity to facilitate progress and develop strategies that impact the bottom line."
  
  About Johnson Smith Company

  Founded in 1904 by Alfred Johnson Smith in Australia and launched in the United States in 1914, is celebrating its 97th anniversary in 2011. Based in Bradenton, Florida, The Johnson Smith Company serves millions of people through its four catalogs and complementary web sites - The Lighter Side (www.LighterSide.com), Things You Never Knew Existed (www.ThingsYouNeverKnew.com), Betty's Attic (www.BettysAttic.com), and Full of Life (www.FullOfLife.com). The Johnson Smith Company is a member of The Direct Marketing Association, American Catalog Association, The New England Mail Order Association, the Manatee (Fla.) Chamber of Commerce and Better Business Bureau. Find out more information at: www.johnsonsmith.com.
  
  About Yes Lifecycle Marketing

  Yes Lifecycle Marketing provides solutions that orchestrate cross-channel marketing communications to drive results and revenue. This is accomplished by leveraging technology, data, analytics, creative, and strategy to activate and optimize insights-driven, real-time, relevant communications. This holistic approach gives marketers the ability to source a full-service offering of best-of-breed technology and solutions from a single vendor in order to achieve their desired outcomes across all on and offline channels. To learn more, call 1-877-937-6245, email sales@yeslifecyclemarketing.com or visit www.yeslifecyclemarketing.com.
  
  About Infogroup

  Infogroup is a marketing services and analytics provider that delivers best in class data-driven customer-centric technology solutions. Our data and software-as-a-service (DaaS & SaaS) offerings help clients of all sizes, from small companies to FORTUNE 100TM enterprises, increase their sales and customer loyalty. Infogroup provides both digital and traditional marketing channel expertise that is enhanced by access to our proprietary data on 235MM individuals and 24MM businesses, which is distributed real-time to our clients. For more information, visit: www.infogroup.com.

  CONTACT: Sarah Dietze Phone: 312-241-1471 E-mail: sarah.dietze@walkersands.com

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• Johnson Smith Company(TM) Expands Relationship with Yes Lifecycle Marketing

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  CHICAGO, Nov. 3, 2015 (GLOBE NEWSWIRE) -- Yes Lifecycle Marketing, an Infogroup company and multichannel marketing solutions provider, today announced the Johnson Smith Company™ has expanded their relationship with Yes Lifecycle Marketing to include full-service marketing capabilities - analytics, strategy, data and database marketing technology - across their brands.
  
  As one of America's oldest catalog and internet retailers, headquartered in Bradenton, FL, the Johnson Smith Company, relies on Yes Lifecycle Marketing to provide data-driven, actionable insights, and state-of-the-art technology solutions to ensure they are meeting the demands of their customers. By implementing a Marketing Opportunity Diagnosis, Yes Lifecycle Marketing's Agency Services was able to equip the Johnson Smith Company with a comprehensive customer data analysis in order to quantify and fuel revenue growth opportunities.
  
  "Yes Lifecycle Marketing has provided us with the insights and guidance to help lead our business into becoming a better multichannel cataloger," said Johnson Smith Company's, Ellen Pullman, Director of Marketing. "They understand our customers, our business and our vision."
  
  Key reasons the Johnson Smith Company selected Yes Lifecycle Marketing include:

  • Innovative data and analytics solutions
  • Thought Leadership
  • Database marketing expertise
  • Responsiveness and collaboration of the client service team

  "The Johnson Smith Company has long been a household name in cataloging for novelties, gifts and collectibles," said Michael Fisher, president of Yes Lifecycle Marketing. "We are thrilled to be an integral partner as the Johnson Smith Company further evolves into a multichannel marketer."
  
  "Yes Lifecycle Marketing is well positioned to help traditional cataloguers adapt to the multichannel age of marketing," said Mike Iaccarino, CEO and Chairman, of Infogroup. "Our expertise as a services and technology partner gives clients the opportunity to facilitate progress and develop strategies that impact the bottom line."
  
  About Johnson Smith Company

  Founded in 1904 by Alfred Johnson Smith in Australia and launched in the United States in 1914, is celebrating its 97th anniversary in 2011. Based in Bradenton, Florida, The Johnson Smith Company serves millions of people through its four catalogs and complementary web sites - The Lighter Side (www.LighterSide.com), Things You Never Knew Existed (www.ThingsYouNeverKnew.com), Betty's Attic (www.BettysAttic.com), and Full of Life (www.FullOfLife.com). The Johnson Smith Company is a member of The Direct Marketing Association, American Catalog Association, The New England Mail Order Association, the Manatee (Fla.) Chamber of Commerce and Better Business Bureau. Find out more information at: www.johnsonsmith.com.
  
  About Yes Lifecycle Marketing

  Yes Lifecycle Marketing provides solutions that orchestrate cross-channel marketing communications to drive results and revenue. This is accomplished by leveraging technology, data, analytics, creative, and strategy to activate and optimize insights-driven, real-time, relevant communications. This holistic approach gives marketers the ability to source a full-service offering of best-of-breed technology and solutions from a single vendor in order to achieve their desired outcomes across all on and offline channels. To learn more, call 1-877-937-6245, email sales@yeslifecyclemarketing.com or visit www.yeslifecyclemarketing.com.
  
  About Infogroup

  Infogroup is a marketing services and analytics provider that delivers best in class data-driven customer-centric technology solutions. Our data and software-as-a-service (DaaS & SaaS) offerings help clients of all sizes, from small companies to FORTUNE 100TM enterprises, increase their sales and customer loyalty. Infogroup provides both digital and traditional marketing channel expertise that is enhanced by access to our proprietary data on 235MM individuals and 24MM businesses, which is distributed real-time to our clients. For more information, visit: www.infogroup.com.

  CONTACT: Sarah Dietze Phone: 312-241-1471 E-mail: sarah.dietze@walkersands.com

  Full ArticleVisit Website

• BMC Named Mobby Award Winner for Best Collaboration and Teamwork App

  

  By: GlobalNewswire News | Published: Tuesday, November 3, 2015

  HOUSTON, Nov. 3, 2015 (GLOBE NEWSWIRE) -- BMC, the global leader in software solutions for IT, has been named the winner of the Best Collaboration and Teamwork App in the 2015 Mobby Awards. Selected from a pool of more than 150 nominated apps, the award honors BMC MyEBC, a mobile application designed to deliver an exceptional customer experience for those visiting the company's executive briefing center in Houston.

  The MyEBC app provides a holistic approach to the customer's visit with BMC including personalized access to all logistical and content details associated with the visit such as agendas, speaker bios, travel information, presentations and related post briefing collateral.

  "At BMC we strive to create intuitive solutions, centered on specific needs that enable our customers to be more productive. MyEBC does just that, and we are excited to be recognized by the industry," said Karen Bintz, area vice president, customer experience, BMC. "The BMC MyEBC app redefines how executive briefing centers can bring digital transformation to life and sets the standard for customer-facing enterprise apps."

  MyEBC was developed in collaboration with Appirio's top coder community. "Appirio's developer community is comprised of some of the most talented programming and design experts in the world," says Tom Scott, vice president at Appirio. "We are proud to be a trusted BMC partner and are excited to have been given the opportunity to help build an innovative business application that delivers exceptional customer experiences and interactions."

  The Mobby Awards celebrate the best mobile apps for work and productivity across the world. For a list of winners, visit http://tabbyawards.com/business/2015-winners/.

  About BMC
  BMC is a global leader in software solutions that help IT transform traditional businesses into digital enterprises for the ultimate competitive advantage. Our Digital Enterprise Management set of IT solutions is designed to make digital business fast, seamless, and optimized. From mainframe to mobile to cloud and beyond, we pair high-speed digital innovation with robust IT industrialization—allowing our customers to provide intuitive user experiences with optimized performance, cost, compliance, and productivity. BMC solutions serve more than 15,000 customers worldwide including 82 percent of the Fortune 500.

  BMC – Bring IT to Life

  BMC, BMC Software, the BMC logo, and the BMC Software logo are the exclusive properties of BMC Software Inc., are registered or pending registration with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other BMC trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries. All other trademarks or registered trademarks are the property of their respective owners. © Copyright 2015 BMC Software, Inc.

  CONTACT: Editorial contacts: Tami Casey BMC D: 408.571.7131 M: 650.293.7219 Tami_Casey@bmc.com Jenn Zimmer Eastwick Communications D: 415.820.4175 bmc@eastwick.com

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