- Delays Filing of Third Quarter Form 10-Q;
Will Restate Results of Certain Prior Periods;
Reaffirms Guidance for Fourth Fiscal Quarter -
NEW YORK, May 17 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today provided an update on its previously reported results of operations for
the quarter ended March 31, 2004.
Based upon a continuing review and analysis of commissions receivable in
its Life Insurance division, BISYS has determined that the previously reported
adjustment of $24.7 million ($15.5 million net of tax) to commissions
receivable in its Life Insurance division will be increased to approximately
$70 million to $80 million (approximately $44 million to $50 million net of
tax).
BISYS has also determined that the adjustment requires a restatement of
its financial results for each of the fiscal years ended June 30, 2003, 2002
and 2001, as well as its interim results for fiscal 2004, to reflect the
impact of the adjustment on each of the periods presented. The Company
intends to file its Form 10-Q for the quarterly period ended March 31, 2004,
as soon as practicable.
According to Jim Fox, BISYS' executive vice president and CFO, "The
adjustment to commissions receivable in our Life Insurance division is larger
than we had previously anticipated, and after further analysis requires that
we restate our previously reported results to appropriately reflect the impact
of the adjustment on prior periods. We look forward to presenting our
restated historical financial results as soon as practicable, and expect the
substantial majority of the final adjustment, including the $24.7 million
previously reported in our third fiscal quarter of 2004, to relate to fiscal
years prior to 2003."
Russ Fradin, BISYS' president and CEO, added, "We continue to believe that
we are taking the actions necessary to position our Life Insurance business
for future growth, and we continue to expect our Life Insurance results to
improve in fiscal year 2005. This adjustment to our commissions receivable
portfolio has no impact on our current guidance, nor on our belief in the
future opportunity of our Life Insurance business. We continue to expect that
our net income for our fiscal fourth quarter will be in the range of $0.16 to
$0.18 per share, excluding restructuring, impairment, and other charges."
About BISYS
The BISYS Group, Inc. (NYSE: BSG), headquartered in New York City,
provides business process outsourcing solutions that enable investment firms,
insurance companies, and banks to capitalize on convergence by entering new
segments of the financial services industry. BISYS currently supports more
than 22,000 domestic and international financial institutions and corporate
clients through three business units. Its Investment Services group provides
administration and distribution services for approximately 380 clients,
representing more than 2,200 mutual funds, hedge funds, private equity funds,
and other alternative investment products with approximately $750 billion in
assets under administration. BISYS' largest group also provides retirement
services to more than 18,000 companies in partnership with 40 of the nation's
leading banks and investment management companies, and offers analytical
research and competitive information through its Financial Research
Corporation (FRC) subsidiary. Through its Insurance and Education Services
group, BISYS is the nation's largest independent distributor of life insurance
and the premier provider of the support services required to sell traditional
and variable life, long-term care, disability, and annuity products. BISYS is
also the nation's second largest independent wholesale distributor of
commercial property/casualty insurance. This group complements its insurance
distribution services with a comprehensive compliance management solution that
supports insurance and investment firms and professionals with approximately
390 certification and continuing education training courses, and a
sophisticated suite of products and services that automate the entire
licensing process. BISYS' Information Services group supports approximately
1,450 banks, insurance companies, and corporations with industry-leading
information processing and imaging solutions, turnkey asset retention
solutions, and specialized corporate banking solutions. Additional
information is available at http://www.bisys.com.
Except for the historical information contained herein, the matters
discussed in the press release are forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors affecting the Company's operations, markets, services and related
products, prices and other factors discussed in the Company's periodic filings
with the Securities and Exchange Commission.
SOURCE The BISYS Group, Inc.
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Related links:
http://www.bisys.com
Company News On-Call:
http://www.prnewswire.com/comp/851938.html
CONTACT:
Daniel Briggs, Vice President Finance and
Investor Relations, The BISYS Group, Inc., +1-212-907-6134
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