PADUCAH, Ky.--(BUSINESS WIRE)--Computer Services, Inc. (CSI) (OTCQX: CSVI) announced today that shareholders elected two directors and approved the ratification of the appointment of RSM US LLP as independent auditors for fiscal year 2018.
In comments to shareholders, Steven A. Powless, CEO of CSI, stated, “We reported record results in fiscal 2017 marking our 17th consecutive year of increased revenues, 20th consecutive year of increased net income and our 45th consecutive year of increased cash dividends for our shareholders. Our record results benefited from our high rate of customer satisfaction, contract renewals and new accounts opened during the year.
“Our results for the first quarter of fiscal 2018 highlighted our continued growth in revenues across all of our business units based on new contracts signed, higher cross-sales and increased transaction volumes,” Powless continued. “Our first quarter also benefited from approximately $5.3 million in early contract termination fees compared with $85,000 in the first quarter of fiscal 2017. Excluding the effect of early contract termination fees, net revenues increased approximately 6% and net income rose approximately 5% in the first quarter of fiscal 2018 compared with the first quarter of fiscal 2017.
“We expect continued growth in fiscal 2018 based on our high recurring revenue base with long-term contracts, high renewal rates on customer contracts and our current pipeline of business. Our outlook for the second half of this fiscal year is for revenue and earnings growth to be lower than the first half due to higher early contract termination fees in the third and fourth quarters of last fiscal year compared with possible lower early contract termination fees in the second half of this year. For the full year, we expect total revenues for fiscal 2018 to be higher than the prior fiscal year, notwithstanding the early contract termination fees.
“Our strategy for the future remains focused on customer retention and satisfaction, sales and market expansion, marketing and brand awareness, and product innovation. We believe these strategies will drive our future growth, earnings and returns to our shareholders,” Powless concluded.
At the meeting, shareholders elected the following directors for three-year terms:
- Bruce R. Gall – CEO of Dornoch Management Corporation, and Chairman and CEO of Fed Reporter, Inc.
- Kristin R. Muhlner – President and COO of Framebridge
About Computer Services, Inc.
Computer Services, Inc. delivers core processing, managed services, digital banking, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate customers across the nation. Exceptional service, dynamic solutions and superior results are the foundation of CSI’s reputation, and have resulted in the company’s inclusion in such top industry-wide rankings as the FinTech 100, Talkin’ Cloud 100 and MSPmentor Top 501 Global Managed Service Providers List. CSI’s stock is traded on OTCQX under the symbol CSVI. For more information about CSI, visit www.csiweb.com.
This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements except historical statements contained herein constitute “forward-looking statements.” Forward-looking statements are inherently uncertain and are based only on current expectations and assumptions that are subject to future developments that may cause results to differ materially. Readers should carefully consider: (i) economic, competitive, technological and governmental factors affecting CSI’s operations, customers, markets, services, products and prices; (ii) risk factors affecting the financial services information technology industry generally including, but not limited to, cybersecurity risks that may result in increased costs for us to protect against the risks, as well as liability or reputational damage to CSI in the event of a breach of our security; and (iii) other factors discussed in CSI's Annual Reports, Quarterly Reports, Information and Disclosure Statements and other documents posted from time to time on the OTCQX website (available either at www.otcmarkets.com or www.otcqx.com), including without limitation, the description of the nature of CSI's business and its management discussion and analysis of financial condition and results of operations for reported periods. Except as required by law or OTC Markets Group, Inc., CSI undertakes no obligation to update, and is not responsible for updating, the information contained or incorporated by reference in this report beyond the publication date, whether as a result of new information or future events, or to conform this document to actual results or changes in CSI's expectations, or for changes made to this document by wire services or Internet services or otherwise.