ISG Reports Record First Quarter Revenues

ISG International Software Group (NASDAQ:SISG ), a leading provider of high performance business-to-business (B2B) and e-Business integration software, today reported record first quarter revenues of $6,424,000, compared with $4,696,000 for the first quarter of 1999.

The Company posted in excess of $3 million in software license revenues for its high performance e-Business and B2B products, representing a 78% increase over the same period in 1999 and a 76% increase over Q4/1999. Gross profit in the first quarter of 2000 was $4,257,000 compared with $3,142,000 in the first quarter of 1999.

The company continued to invest in sales and marketing and those expenses increased by 25% from $2,471,000 in Q4/1999 to $3,080,000 in Q1/2000 and by 70% over Q1/1999, whereas research and development expenses remained flat. Net loss for the three months before acquisition related expenses, was $310,000 or $0.03 per share, as compared with net loss of $73,000 or $0.01 loss per share for the same period last year.

The Company incurred a one time in-process research and development expense of $21,492,000, related to the acquisitions of Bridges for Islands, Medatech and Insol at the end of March 2000.

Published by Israel's Business Arena on May 1, 2000.

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