Tyler Technologies Reports Earnings for Second Quarter 2007.

REVENUES RISE 10 PERCENT

DALLAS, July 25 /PRNewswire-FirstCall/ -- Tyler Technologies, Inc. today reported the following financial results for the quarter ended June 30, 2007:

 
  * Total revenues were $54.1 million, up 10.1 percent compared to 
    $49.2 million in the same period last year. Software-related revenues 
    (software licenses, software services and maintenance) grew in the 
    aggregate 9.3 percent for the quarter. 
 
  * Operating income was $5.8 million, compared with operating income of 
    $5.6 million in the same quarter of 2006. 
 
  * The effective income tax rate was 39.1 percent, compared to 35.5 percent 
    in the second quarter of 2006. 
 
  * Net income was $3.8 million, or $0.09 per diluted share for both the 
    three months ended June 30, 2007 and 2006. 
 
  * Free cash flow was $972,000 (cash provided by operating activities of 
    $1.9 million minus capital expenditures of $937,000).  For the second 
    quarter of 2006, free cash flow was negative $780,000 (cash provided by 
    operating activities of $625,000 minus capital expenditures of 
    $1.4 million).  For the six months ended June 30, 2007, free cash flow 
    was $7.1 million (cash provided by operating activities of $8.8 million 
    minus capital expenditures of $1.7 million).  For the six months ended 
    June 30, 2006, free cash flow was $8.2 million (cash provided by 
    operating activities of $10.6 million minus capital expenditures of 
    $2.4 million). 
 
  * EBITDA, or earnings before interest, income taxes, depreciation and 
    amortization, totaled $8.4 million.  EBITDA for the second quarter of 
    2006 totaled $8.0 million. 
 
  * Gross margin was 37.6 percent, compared to 38.5 percent in the quarter 
    ended June 30, 2006.  Sequentially, gross margin for the second quarter 
    improved from 35.8 percent in the first quarter of 2007. 
 
  * Selling, general and administrative expenses were $12.8 million (23.6 
    percent of revenues), compared to $12.2 million (24.8 percent of 
    revenues) in the same quarter last year.  Sequentially, SG&A expenses as 
    a percentage of revenue decreased from 25.8 percent for the first 
    quarter of 2007. 
 
  * Share-based compensation expense for the second quarter, related to 
    share-based awards under SFAS No. 123R, totaled $575,000, of which 
    $56,000 was included in cost of revenues and $519,000 was included in 
    selling, general and administrative expenses.  For the second quarter of 
    2006, share-based…