Magazine article American Banker

Systems Integrator at $1B in Revenue

Magazine article American Banker

Systems Integrator at $1B in Revenue

Article excerpt

American Management Systems Inc. has passed the $1 billion milestone in revenue.

The Fairfax, Va., provider of software and systems integration services reported 1998 revenues of $1.06 billion, up 21% from a year earlier. Fourth-quarter revenues were $301 million, up 31% from the year before.

Net income for the fourth quarter was $16.1 million, up 24%. Earnings of 38 cents per share were 2 cents more than expected, according to First Call, an American Banker affiliate.

"It looks like solid performance," said Mark D'Annolfo, an analyst at Adams, Harkness & Hill Inc. "They were hinting at some good numbers all quarter. They came in a little stronger than I would have thought." He had expected fourth-quarter revenues to total $17 million less than they did.

Against a backdrop of big revenue surges in other units, AMS lost ground in financial services. Fourth-quarter revenues in that unit dropped 1%, to $54.8 million.

State and local government business shot up 81% in the fourth quarter, to $92.4 million. The telecommunications unit increased fourth-quarter revenues 26%, to $76.4 million, and the federal government agencies unit increased revenues 23%, to $61.8 million.

Brian Maimone, analyst at ING Furman Selz, said the numbers for financial services "look worse than they actually are."

AMS reallocated certain revenues from financial services into telecommunications. On an apples-to-apples basis, he said, revenue in the financial services practice would have grown 10%. …

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