Open Solutions Reports Strong Fourth Quarter and Year-End 2005 Results; Signed Contract Value for the Fourth Quarter Increased 291% over Same Period of the Prior Year.

Publication: Business Wire

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COPYRIGHT 2006 Business Wire

GLASTONBURY, Conn. -- Open Solutions Inc. (Nasdaq: OPEN), a provider of integrated enabling technologies for financial institutions throughout the United States and Canada, today reported financial results for the three months and full year ended December 31, 2005.

Revenue for the fourth quarter of 2005 increased 65 percent to $59.7 million, from $36.1 million for the fourth quarter of 2004. Revenues for the full year 2005 increased 81 percent to $193.8 million, from $107.2 million in the prior year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2005 increased 91 percent to $15.5 million, from $8.1 million for the fourth quarter of 2004. EBITDA for the full year 2005 increased 83 percent to $41.3 million, from $22.6 million in the prior year. Net income for the three months ended December 31, 2005 was $0.34 per diluted share compared to $0.19 per diluted share for the same period of the prior year assuming the same 2005 effective tax rate for that period, net income was $0.70 per diluted share, as reported, for the three months ended December 31, 2004, which included a one-time tax benefit from the release of the company's deferred tax valuation allowance resulting in a tax benefit of $8.0 million. Net income for the full year 2005 was $0.85 per diluted share compared to $0.54 per diluted share for the same period of the prior year assuming the same 2005 effective tax rate for that period, net income was $1.26 per diluted share as reported for the period, which included a one-time tax benefit from the release of the company's deferred tax valuation allowance resulting a tax benefit of $7.4 million. A reconciliation of EBITDA and pro forma 2004 earnings per share assuming the same 2005 effective tax rate for the 2004 periods to GAAP results is provided as part of this press release.

The Company is providing non-GAAP financial measures because the Company believes that these figures are helpful in allowing individuals to assess more accurately the ongoing financial performance of the business. The Company uses the presented non-GAAP financial measures internally to focus management on period-to-period changes in the Company's core business. Therefore, the Company believes that this information is meaningful when considered in connection with the information contained in the GAAP presentation of financial information.

Open Solutions' Chairman and...

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