"Increased volatility and greater financial risk in 2001 strengthened the demand for risk solutions and helped Algorithmics grow at a solid pace," said Ron Dembo, President and Chief Executive Officer. "We continue to capitalize on the trend among banks to buy, rather than build, risk management solutions.
In addition, regulatory pressures brought on by the latest BIS II guidelines have increased demand for our integrated suite of products."
In North America alone in fiscal 2002, Algorithmics' revenues grew by over 50% on a year-over-year basis. The company sustained additional growth of 22% in Europe, the Middle East and Africa, as well as 19% in Japan.
In fiscal 2002 Algorithmics added 14 new clients, and it now has more than 140 clients, including more than 40 of the top 100 financial institutions worldwide. Algorithmics boasts more than 30 clients who have chosen Algo Collateral as their risk solution of choice. In addition, more than 40 clients
have purchased Algo Credit to recognize the benefits of measuring and managing
their credit risk on an enterprise- wide basis using a scalable, consistent
and robust framework.
"We are extremely pleased by the success that we experienced in a challenging economic environment," said Michael Zerbs, Chief Operating Officer. "We generated strong positive cash flow from operations in fiscal 2002. As a result, we continue to make a significant investment in our core products which reflects our commitment to future growth."
Fiscal 2002 also marked the release of Algorithmics' Algo Suite Version 4.0 architecture that, modeled on a single Mark-to-Future-based risk framework, saves capital charges and meets business and regulatory demands for 'best practice' processes and systems. Upgrades and implementations of Algo Suite 4.0 are currently underway at 31 client sites worldwide.
Ron Dembo said "Fiscal 2002 was filled with many significant accomplishments, none of which would have been possible without the loyalty of our customers, the dedication of our staff and the commitment of our shareholders including Morgan Stanley International, CIBC Capital Partners, Royal Bank of Canada, American International Group, VenGrowth Capital Investment Fund and Commerzbank AG. Fiscal 2003 is shaping up to be another successful year, filled with new innovations, developments and initiatives which will further round out the Algorithmics suite of enterprise risk management solutions."