The earnings announcement followed the news of a launch by retail brokerage Schwab of a new direct banking business powered by Sanchez technology.

Frank Sanchez, chief executive officer of Sanchez, comments: "The launch of Charles Schwab Bank is expected to have a significant positive impact on our revenues and earnings for the remainder of 2003 and in the years to come."

He adds that the existing Sanchez client base continued to generate significant revenues for the company during the first quarter: "This is a positive sign in a climate that remains soft for new sales of large-scale, financial technology solutions."

Comparing 2002's first quarter over Q1 2003, the company's revenues rose 19% from $19.3 million to $23 million. Revenue contributions were recognised from across the client base and included new license sales in Poland and Hungary and implementations with Krung Thai Bank in Thailand and Scotiabank in Canada.

Comparing the company's key revenue lines, product revenues increased approximately 48% from $3.9 million in 2002's first quarter to $5.7 million in Q1 2003; services revenues increased approximately 15 percent from $5.7 million to $6.6 million; and software maintenance and other increased approximately 31 percent from $3.9 million to $5.1 million. Processing revenues were flat at $4.6 million.

Earnings from operations rose from $134,000, achieved in the first quarter 2002, to $417,000, reached in the first quarter 2003. Net earnings increased from $218,000 to $335,000. The company recognised a net gain of $156,000 on an investment in a partner company in Poland, but took a foreign exchange charge of $207,000 due to a weakening US dollar against the Canadian dollar

Management reaffirmed its estimates that the company can grow its 2003 revenues 10 to 20%, which is a range of $102 million to $112 million.