Revenue for the fourth quarter of 2002 increased to $19.8 million from $19.4 million in the third quarter of 2002. Total cost of revenue and operating expenses for the fourth quarter decreased to $17.2 million from $17.6 million in the third quarter. The corresponding results for the fourth quarter of 2001 were revenue of $20.7 million and total cost of revenue and operating expenses of $19.2 million.
EBITDA for the fourth quarter of 2002 increased to $2.6 million from $1.8 million in the third quarter of 2002. Net earnings for the fourth quarter increased to $1.0 million, or earnings per share of $0.09, from $0.6 million, or earnings per share of $0.05, in the third quarter. The corresponding results for the fourth quarter of 2001 were EBITDA of $1.5 million and a loss of $4.8 million, or loss per share of $0.40.
"We are pleased with the continued improvements in revenue and earnings for the third consecutive quarter," said Stamos D. Katotakis, President and Chief Executive Officer of FMC. "Despite a difficult economic environment we have managed to restore FMC's profitability. We are particularly pleased with the growth of our recurring revenues which now account for approximately 65% of total revenues."
Revenue for the year decreased 3.4% to $76.2 million in 2002 from $78.9 million in 2001. Recurring revenue from application services and licence maintenance increased 24.3% to $49.0 million in 2002 from $39.4 million in 2001. Non-recurring revenue from licence sales and professional services decreased 31.0% to $27.2 million from $39.5 million. Total cost of revenue and operating expenses were relatively constant increasing 0.6% to $75.1 million in 2002 from $74.7 million in 2001.
EBITDA for the year decreased to $1.1 million in 2002 from $4.2 million in 2001. Net loss decreased to $2.0 million, or loss per share of $0.17, from a net loss of $5.3 million, or loss per share of $0.44.
Cash as of February 28, 2002 increased to $17.4 million from $14.0 million at the end of the third quarter of 2002 and increased from $14.4 million at February 28, 2001 due mainly to improved cash flow and receivables collection. Cash flow from operations increased to $3.2 million in the fourth quarter from $1.4 million in the third quarter and increased from $1.1 million in the fourth quarter of 2001. Receivables as of February 28, 2002 decreased to $14.2 million, or 68 days outstanding, from $18.0 million, or 85 days outstanding, at the end of the third quarter and decreased from $20.1 million, or 93 days outstanding, at February 28, 2001.
"In addition to continued improvements in profitability we have continued to improve our cash flow from operations and our cash balances again this quarter," continued Mr. Katotakis. "In the fourth quarter we started deploying our new web-based systems with the launch of FMCSuite(TM) FMCModel(TM) and FMCWealthnet(TM) and will be deploying additional products throughout 2003. These systems embody FMC's considerable domain expertise and represent a significant technological breakthrough. We are pleased to provide our clients with an evolutionary path to advanced technology as they invest to achieve straight-through-processing and meet the challenge of next day settlement (T+1)."
