PLUS to be compensated $37M by Ariba
PLUS and Ariba reached an out of court settlement in which Ariba will pay PLUS $37M, or over $4 per share, with payment due by 3/31. PLUS also reported earnings which were a bit disappointing ... EPS of .18 vs .27 y/y for fiscal Q3.
HERNDON, Va.--(BUSINESS WIRE)--Feb. 14, 2005--ePlus inc. (Nasdaq NM: PLUS - News) today announced financial results for its third quarter and nine months ended December 31, 2004. ePlus recorded an 85% increase in total revenues for the quarter, to $147.7 million, as compared to $79.8 million the prior year. Net earnings were $1.6 million, 38% less than prior year's quarter of $2.6 million. Basic earnings per share decreased 35% from $0.28 to $0.18, and fully diluted earnings declined 34% to $0.17, as compared to $0.26 the prior year.
For the nine month period, ePlus recorded record revenues of $408 million, a 66% increase over $245 million the prior year, and net earnings of $5.8 million, a 23% decline from $7.6 million the prior year. Basic earnings per share decreased 19% to $0.65 from $0.81, and fully diluted earnings decreased 17% to $0.62 from $0.76.
As of December 31, 2004, ePlus had total stockholders' equity of $117.3 million and cash of $18.7 million. On November 18, 2004, the Company announced a Stock Repurchase Plan, and the Company repurchased 19,032 shares of common stock at a cost of $0.2 million during the quarter.
"We are very pleased by this fiscal year's increase in revenues, which have resulted from both organic growth and the successful Manchester acquisition," stated Phillip G. Norton, chairman, president and CEO of ePlus. "Our bottom line results were impacted by a reduction in revenues generated by our leasing business, especially in the federal sector, and to expenses relating to our corporate office relocation. In addition, we continue to have real estate sublease costs from the Manchester transaction which will be reduced over the next two quarters as we move to less expensive office space in those locations. The software sector of our business was negatively impacted due to management's focus on our patent infringement lawsuit, and the related customer uncertainty which we believe may have lengthened the sales and closing cycle."
Mr. Norton continued, "Despite the demands of the infringement litigation, the Company achieved a number of successes in the software, technology distribution, and advanced solutions areas. We held our first software customer summit, which was well attended and provided a great foundation for future collaboration between ePlus and its customers. We signed 12 customer software agreements, including our first Spend+ VisualEngine deal, which is with a Fortune 500 company, and we announced five new or upgraded software solutions. We gained a number of significant customer wins in our technology business. At our new HQ, we are demonstrating our patent-pending serverless office technology, which can reduce infrastructure costs significantly while providing enhanced data security and redundancy. And the successful defense of our patents has enhanced public awareness of ePlus and our Enterprise Cost Management solutions, and we believe will lead to more sales opportunities."
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