US banking systems vendor Sanchez Computer Associates says a strong fourth quarter helped it meet 2002 revenue targets of $93 million and exceed earnings estimates of $3.9 million for the year ended 31 December, 2002.
Record quarterly revenues of $26.1 million, which included results from the company's recently acquired wealth management business unit, helped the company meet its fourth quarter revenue forecast and report earnings of $0.08 per share, which exceeded the company's estimates.
The 20% hike in fourth quarter revenues is attributed to growth in product, processing and software maintenance fees.
Sanchez's 2002 fourth quarter product revenues rose by approximately 57% to $8.2 million from 2001's fourth quarter product revenues of $5.2 million. Contracts in progress with Krung Thai Bank and Scotiabank along with client license expansions contributed to the increase in product revenues.
Processing revenues, generated from Sanchez's outsourcing business unit, Sanchez Data Systems Inc. (SDSI), grew nine percent to $4.8 million from $4.4 million on a comparable quarter basis.
Software maintenance and other revenue, which rose approximately 42% to $6.0 million in 2002's fourth quarter from $4.2 million for the same period in 2001, was indicative of new client institutions going live in 2002, growth of client institutions' account bases, and the addition of maintenance contracts acquired in the acquisition of Spectra Securities Software in July 2002.
Services revenue for Q4 2002 was $7.1 million, down from $8 million recorded in 2001's fourth quarter.
Year on year, Sanchez's annual revenues and net earnings were flat at approximately $93 million and $3.9 million respectively.
For the year ahead, management estimates the company's annual revenues can increase by 10 to 20%, which is a range of $102 million to $112 million.