Group 1 Reports Record Revenue
Total revenue for the quarter from enterprise solutions software and services was $16.1 million, up from $14.5 million the prior year. Total revenue for DOC1 Customer Communications Management software and services increased 15 percent to $7.3 million. License revenue rose 35 percent in the enterprise solutions division to $7.1 million and 47 percent in the DOC1 division to $2.8 million.
Non-operating income for the Lanham, MD-based company was $100,000, down from $500,000 last year. The company attributed the drop to lower interest income in the current year and higher interest expense related to the three asset acquisitions made in the prior year.
"The significant increases in license fees were particularly encouraging," Group 1 CEO Bob Bowen said. "We saw strong demand for our enterprise solutions division's data quality solutions. The DOC1 division saw growing sales of DOC1 Archive, the newest component of our end-to-end customer communications management suite. DOC1 Archive offers real-time storage, compression and high-speed retrieval of business documents."
Chief financial officer Mark Funston said that though the company is pleased to see a return to record results, "due to the continuing difficult market conditions, we are taking a conservative view toward the next several quarters ... Our guidance for the balance of the fiscal year remains 10 percent revenue growth over the prior year and EPS growth in the 18 [percent] to 22 percent range."