Herndon, VA August 13, 2002 ePlus inc., a provider of enterprise cost canagement (ECM) announced financial results for its first quarter ending June 30, 2002. For the quarter, as compared to the same period the prior fiscal year, total revenues increased 35 percent to $72.2 million from $53.3 million, net earnings declined 7.6 percent to $2.0 million from $2.1 million, and fully diluted earnings per share declined 9.5 percent to $0.19 from $0.21.
The increase in total revenues for the quarter was driven by a 39 percent increase in sales of equipment to new customers from two acquisitions and increased equipment orders from ePlus' existing customers. Phillip Norton, chairman, president and CEO of ePlus stated "Our acquisition strategy is to expand our geographic footprint and acquire new customers." He added that ePlus has started a number of pilots for Procure+ and Content+ for Fortune 1000 companies, and, if successful, should transition to multi-year license and subscription deals in the next few months for the company.
During the quarter, ePlus incurred higher general and administrative expenses, including a 60 percent increase in salaries and benefits, from $7.0 million to $11.2 million. Total headcount increased from 460 to 590 from June 30, 2001 to June 30, 2002. ePlus incurred expenses related to the transition of the acquired customers and systems, including the changeover of approximately 40 customers from Elcom's Internet procurement system to ePlus' Procure+ and integration of the SalesTrak order automation and tracking system acquired from Elcom into ePlus' systems. The transition was substantively completed by July 31st.
Norton said, "We are incurring higher costs as compared to prior years, to hire and support a greater sales staff, expand locations, improve our products and increase marketing activities. All of these investments are highly focused on increasing our customer base and revenues. We believe it is important to make this investment today to be better positioned to capture growth in the future."
During the quarter, ePlus generated cash flow of $4.1 million, and its cash position grew from $28.2 million to $32.3 million. Total shareholder's equity grew to $108.2 million or $10.30 per share (fully diluted).