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Integral Reports Record Revenues in 4Q FY2005

LANHAM, Md., Dec. 14, 2005, Satnews Daily/ — Integral Systems, Inc. (NASDAQ:ISYS) said on Tuesday revenues for the fourth quarter fiscal 2005 were $27.1 million, up from $25.1 million in the fourth quarter of fiscal 2004 or equivalent to an 8 percent increase and the highest quarterly revenue total in the company’s history.

Integral said excluding a one time, non-cash compensation charge related to the acceleration of stock option share vesting of approximately $1.2 million, operating income decreased slightly, declining to $3.5 million for the current quarter, versus $3.6 in the fourth quarter of fiscal 2004. The acceleration of the vesting of these options enabled Integral to avoid related future non-cash compensation expense to be recorded upon adoption of SFAS 123R of approximately $4.1 million, the company said.

Net income, exclusive of the one-time charge, was flat at $2.4 million in the fourth quarter of fiscal 2005 compared to the fourth quarter of fiscal year 2004, while EPS was down slightly during the same periods, falling from $.24 per share to $.22 per share, Integral said.

Including the stock option charge, operating income, net income and earnings per share were $2.3 million, $1.7 million and $.16 respectively during the fourth quarter of fiscal year 2005.

For the fiscal year ended September 30, 2005, revenues increased to $97.7 million compared to $90.3 million last year. Excluding the stock option charge, operating income rose to $11.0 million from $10.4 million, while net income for fiscal year 2005 was $7.5 million, or $0.71 per share, compared to $6.8 million, or $0.67 per share, for fiscal year 2004.

Steven R. Chamberlain, chairman and CEO, said the company’s Air Force business in its core command and control segment and the RT Logic subsidiary continue to post outstanding results for the company. RT Logic surpassed last year's record performance with operating income of $9.4 million on revenue of $32.5 million.

Integral said for fiscal year 2006, the company is anticipating revenue, operating income, net income, and earnings per common share to increase by 15 percent, 30 percent, 30 percent and 30 percent, respectively, over fiscal year 2005 results.