Melita Reports Record 3Q Results, CEO Resigns
Also announced by the company is the resignation of president/CEO Carl James Schaper, who assumed his role on September 23, 1998. According to a statement issued by the company, Shaper's management style was found to be incompatible with the company's. Melita's founder, Aleksander Szlam, will assume the responsibilities of president/CEO.
His departure is not expected to cause disruption to future results of the company.
"Melita posted record quarterly results in the third quarter of this year which were achieved, for the most part, without my involvement," Schaper said.
Revenue for the quarter is $24.3 million, or a 43.3 percent increase compared to $16.9 million for the same period in 1997. Operating income for the quarter grew to $4.4 million, or 18.2 percent of total revenue compared to third quarter 1997 operating income of $3.0 million, or 17.5 percent of total revenue. Net income increased to $3.1 million, or a 47.4 percent increase compared to $2.1 million in the year ago period. Diluted earnings per share increased 46.2 percent to 19 cents from 13 cents for the same period in 1997.
Melita reported revenue of $66.8 million for the nine-month period ending Sept. 30, 1998 compared to $47.1 million for the same period in 1997, an increase of 41.8 percent. Net income increased 61.4 percent to $8.4 million compared to pro forma net income of $5.2 million for the first nine months of 1997. Earnings per share increased to 52 cents from pro forma earnings per share of 37 cents for the same period in 1997, an increase of 40.5 percent. Pro forma income tax provisions are calculated using an effective tax rate of 38 percent for 1997.
During the quarter the Company introduced Melita Enterprise Explorer, the first of its kind customer contact management solution. It provides centralized control and resource routing across multiple, geographically-distributed call centers.
Melita also announced COMPASS services, an advanced and innovative support program for companies with call centers. It enables proactive, reliable and timely resolutions through remote
monitoring and diagnostics, by creating automatic links to Melita's Global Support Services.
Significant new customer agreements during the quarter included contracts with Tecmarketing S.A. de C.V. of Mexico (telemarketing), Bank of Montreal (collections) and FANCL, a Japanese cosmetics firm (telemarketing). The company also closed an agreement with a significant leader in the healthcare industry through its agreement with M.D. Anderson Cancer Center. Also, a number of current customers purchased new systems and upgraded existing systems, with the most significant being First USA; Metris; Ameridial and Americredit Financial.