<PAGE>
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the quarterly period ended MARCH 31, 2000
-----------------------------------------------
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from ____________________ to _______________________
Commission file number 0-21705
SANCHEZ COMPUTER ASSOCIATES, INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
PENNSYLVANIA 23-2161560
- ------------------------------------- ------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
40 VALLEY STREAM PARKWAY, MALVERN, PA 19355
- ---------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (610) 296-8877
-----------------------------
N/A
- --------------------------------------------------------------------------------
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
As of April 30, 2000, there were outstanding 24,934,354 shares of the issuer's
Common Stock, no par value.
<PAGE>
SANCHEZ COMPUTER ASSSOCIATES, INC.
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2000
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
CONSOLIDATED BALANCE SHEETS
March 31, 2000 (Unaudited) and December 31, 1999 3
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended March 31, 2000 and 1999 4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31, 2000 and 1999 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 6
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12
PART II: OTHER INFORMATION
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K 13
SIGNATURES 14
</TABLE>
2
<PAGE>
SANCHEZ COMPUTER ASSOCIATES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
<TABLE>
<CAPTION>
ASSETS MARCH 31, DECEMBER 31,
2000 1999
-------- --------
(UNAUDITED)
<S> <C> <C>
Current assets
Cash and cash equivalents $ 31,801 25,404
Receivables, less allowance of $288 14,598 12,564
Contracts in process 3,905 3,227
Deferred income taxes 686 686
Income tax refund receivable 3,694 2,948
Prepaid and other current assets 1,301 1,187
-------- --------
Total current assets 55,985 46,016
Property and equipment
Equipment 8,418 7,351
Furniture and fixtures 1,879 1,784
Leasehold improvements 2,081 2,020
-------- --------
12,378 11,155
Accumulated depreciation and amortization (5,790) (5,115)
-------- --------
Net property and equipment 6,588 6,040
Capitalized software costs, net 1,342 1,493
Intangible assets, net 1,121 1,153
Investments 1,693 1,693
-------- --------
Total assets $ 66,729 56,395
======== ========
LIABILITIES
Current liabilities
Current debt obligations $ 47 83
Accounts payable, trade 2,169 2,360
Accrued expenses 7,403 4,417
Deferred revenue 5,179 3,615
-------- --------
Total current liabilities 14,798 10,475
Deferred income taxes 482 482
-------- --------
Total liabilities 15,280 10,957
SHAREHOLDERS' EQUITY
Common stock, no par value
Authorized - 150,000,000 shares
Issued and outstanding 24,868,105 and 24,357,351 respectively 249 244
Additional paid-in capital 37,597 28,392
Retained earnings 13,603 16,894
Notes due on common stock purchases (92)
-------- --------
Total shareholders' equity 51,449 45,438
-------- --------
Total liabilities and shareholders' equity $ 66,729 56,395
======== ========
</TABLE>
3
<PAGE>
SANCHEZ COMPUTER ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
------------------------------
2000 1999
------------- ---------------
<S> <C> <C>
Revenues
Products $ 2,806 $ 3,286
Services 9,306 4,302
Software maintenance and other 2,765 2,067
-------------- ---------------
Total revenues 14,877 9,655
Operating expenses
Product development 5,975 3,488
Product support 1,062 823
Services 6,565 2,139
Sales and marketing 3,315 1,852
General, administrative and other 3,224 885
-------------- ---------------
Total operating expenses 20,141 9,187
-------------- ---------------
Earnings (loss) from operations (5,264) 468
Interest income, net 425 302
-------------- ---------------
Earnings (loss) before income taxes (4,839) 770
Income tax provision (benefit) (1,548) 277
-------------- ---------------
Net earnings (loss) $ (3,291) $ 493
============== ===============
Basic earnings (loss) per average common share $ (0.13) $ 0.02
Diluted earnings (loss) per average common share $ (0.13) $ 0.02
Weighted-average common shares outstanding 24,633 23,490
Weighted-average common and dilutive shares outstanding 24,633 24,988
</TABLE>
4
<PAGE>
SANCHEZ COMPUTER ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------------------------
2000 1999
-------- --------
<S> <C> <C>
Cash flows from operating activities
Net earnings (loss) $ (3,291) $ 493
Adjustments to reconcile net earnings to cash
provided by operating activities, net of effect
from acquisition
Depreciation and amortization 871 493
Stock based compensation 1,649
Other (13) (2)
Cash provided (used) by changes in
operating assets and liabilities
Accounts receivable (2,034) (5,619)
Contracts in process (678) 1,550
Income tax refund receivable (746)
Prepaid and other current assets (114) (306)
Accounts payable and accrued expenses 2,795 (1,756)
Deferred revenues 1,564 747
-------- --------
Net cash provided (used) by operating activities 3 (4,400)
Cash used in investing activities
Investments (48)
Cost of acquisition, net of cash acquired (499)
Capitalized computer software costs (158)
Proceeds from sale of fixed assets 47
Capital expenditures (1,270) (1,066)
-------- --------
Net cash used in investing activities (1,223) (1,771)
Cash flows from financing activities
Repayment of notes due on common stock purchases 92 1
Purchase of treasury stock (592)
Principal payments under current debt (36) (73)
Proceeds from exercise of stock options 4,561 102
Proceeds from equity investments 3,000
-------- --------
Net cash provided (used) by financing activities 7,617 (562)
-------- --------
Net increase (decrease) in cash and cash equivalents 6,397 (6,733)
Cash and cash equivalents at beginning of period 25,404 27,177
-------- --------
Cash and cash equivalents at end of period $ 31,801 $ 20,444
======== ========
Supplemental cash flow information
Interest paid $ 2 $ 5
Income taxes paid $ 137 $ 1,636
</TABLE>
5
<PAGE>
SANCHEZ COMPUTER ASSOCIATES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(A.) BASIS OF PRESENTATION
The accompanying consolidated financial statements of Sanchez Computer
Associates, Inc. ("Sanchez" or the "Company") include the accounts of
all of the Company's wholly and majority owned subsidiaries. All
significant intercompany transactions and balances have been eliminated
in consolidation. Certain prior period amounts have been reclassified
to conform with current period presentation. In the opinion of
management, the consolidated financial statements reflect all normal
and recurring adjustments which are necessary for a fair presentation
of the Company's financial position, results of operations, and cash
flows as of the dates and for the periods presented. The consolidated
financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information.
Consequently, these statements do not include all the disclosures
normally required by generally accepted accounting principles for
annual financial statements nor those normally made in the Company's
Annual Report on Form 10-K. Accordingly, reference should be made to
the Company's Annual Report on Form 10-K for additional disclosures,
including a summary of the Company's accounting policies, which have
not changed. The consolidated results of operations for the three
months ended March 31, 2000 are not necessarily indicative of results
for the full year.
(B.) CLIENT REVENUE DATA
Revenue derived from customers in various geographic regions is as
follows (in thousands):
<TABLE>
<CAPTION>
---------------------- -------------------------------------
THREE MONTHS ENDED
MARCH 31,
---------------------- -------------------------------------
2000 1999
---------------------- ------------------ ------------------
<S> <C> <C>
U.S.and Caribbean $ 9,876 $ 4,112
Western Europe 3,352 2,459
Central Europe 956 1,046
Canada 642 1,724
Other 51 314
------------------ ------------------
$ 14,877 $ 9,655
---------------------- -------------------------------------
</TABLE>
(C.) EARNINGS PER SHARE
Basic earnings per share has been calculated as net earnings divided by
weighted-average common shares outstanding, while diluted earnings per
share has been computed as net earnings divided by weighted-average
common and diluted shares outstanding which includes the dilutive
effect of stock options and warrants. The following table provides a
reconciliation of weighted-average common shares outstanding to
weighted-average common and diluted shares outstanding (in thousands).
<TABLE>
<CAPTION>
----------------------------------------- ---------------------------
THREE MONTHS ENDED
MARCH 31,
----------------------------------------- ---------------------------
2000 1999
----------------------------------------- ------------- -------------
<S> <C> <C>
Weighted-average shares outstanding 24,633 23,490
Dilutive effect of
Warrants -- --
Options -- 1,498
------------- -------------
Total common and diluted shares 24,633 24,988
------------- -------------
----------------------------------------- ------------- -------------
</TABLE>
At March 31, 2000, potentially dilutive common stock equivalents
include warrants to purchase 66,000 shares of common stock and options
to purchase 2,409,021 shares of common stock. All potentially dilutive
common stock equivalents were excluded from the calculation of net loss
per share for the three
6
<PAGE>
months ended March 31, 2000 as their effect is anti-dilutive as a
result of the net loss incurred for the period.
(D.) SEGMENTS
The Company classifies its operations in two segments: Sanchez's
traditional licensing business and the e-PROFILE outsourcing business.
The Company evaluates the performance of its segments and allocates
resources to them accordingly.
The table below summarizes business segment:
<TABLE>
<CAPTION>
----------------------------------------- ------------------------------
THREE MONTHS ENDED MARCH
31,
----------------------------------------- ------------------------------
2000 1999
----------------------------------------- --------------- --------------
<S> <C> <C>
Revenues
Sanchez 10,094 9,159
e-PROFILE 4,783 496
--------------- --------------
Total 14,877 9,655
=============== ==============
Earnings (loss) from operations
Sanchez (713) 287
e-PROFILE (4,551) 181
--------------- --------------
Total (5,264) 468
----------------------------------------- =============== =============
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------- --------------- --------------
MARCH 31, DECEMBER 31,
2000 1999
---------------------------------------- --------------- --------------
<S> <C> <C>
Total Assets
Sanchez 51,773 49,809
e-PROFILE 14,956 6,586
--------------- --------------
Total 66,729 56,395
---------------------------------------- =============== ==============
</TABLE>
(E.) RECENT ACCOUNTING PRONOUNCEMENTS
In December 1999, the Securities and Exchange Commission ("SEC")
issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition
in Financial Statements." SAB No. 101 expresses the views of the SEC
in applying generally accepted accounting principles to certain
transactions. The Company is still in the process of analyzing the
impact of SAB No. 101 on its consolidated financial statements and
related disclosures.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Sanchez Computer Associates, Inc. ("Sanchez" or "the Company")
designs, develops, markets, implements and supports comprehensive
banking software called PROFILE-Registered Trademark- for financial
services organizations worldwide. Sanchez's highly flexible PROFILE
family of products is comprised of five integrated modules that
operate on open, client/server platforms. The primary module, called
PROFILE/ANYWARE, is a multi-currency, multi-language, multi-bank
transaction processing system that supports deposit, loan, customer
and bank management requirements through multiple distribution
channels. The other modules are PROFILE/WEBCONSUMER, a Web-based,
Internet front-end processor for retail and commercial banking
applications; PROFILE/FMS, a multi-company, multi-currency, financial
management and accounting system; PROFILE FOR WINDOWS ("PFW"), a
native Windows-Registered Trademark- client application for
PROFILE/ANYWARE'S customer service and teller functions; and
PROFILE/ODBC, an open connectivity database driver.
In order to expand its core competency as a product-oriented
development company for financial services and to take advantage of
opportunities in the financial services marketplace resulting from
rapid technological changes and adoption of the Internet, the Company
acquired ArTech Financial Technology Services, LLC, a banking
technology service center located outside of Pittsburgh, Pennsylvania
in the first quarter of 1999. In conjunction with the purchase, the
Company announced the formation of a new subsidiary - e-PROFILE, Inc.
("e-PROFILE"), designed to be a vertical solutions provider ("VSP")
for financial services. A VSP is a business-to-business entity that
manages the technology and operational supply chain within an industry
and integrates all of its components under a single, outsourced
operating infrastructure. e-PROFILE provides customers with several
advantages including: differentiated solutions by providing a choice
of "best-in-class" partners; speed to market with predictable results
by using a fast-track implementation methodology and working
with a select group of pre-qualified partners; process re-engineering
via optimized processes and workflows; and an annuity based,
"pay-as-you-grow" pricing model which lowers the initial cost of entry
for clients and allows them to invest in differentiating their on-line
offering and increasing brand recognition. e-PROFILE is currently
processing in excess of 500,000 accounts at its bank operations and
data center for two clients.
The Company derives its revenues from product fees, which include
software license and product enhancement fees, service fees that
include client implementation, processing and consulting fees, and
software maintenance fees. For Sanchez' traditional software license
contracts, product fees are paid in stages upon the completion, by the
Company, of certain defined deliverables. The Company recognizes
revenue from these fees using the percentage-of-completion contract
accounting method. Service fees are generally recognized and billed
monthly on a time and material basis. Maintenance fees are normally
billed annually in advance and recognized into revenue ratably over
the period covered. The Company's e-commerce projects generate
implementation related service revenues for both Sanchez and
e-PROFILE. In addition, these projects will generate on-going
processing fee related services revenue for e-PROFILE. In lieu of
up-front, one-time license fees, e-commerce contracts will generate
license revenue for Sanchez on a per account/per month basis over the
life of the contract after the client "goes live" with the solution.
Under this model, as a client institution's e-commerce account base
grows, Sanchez increases its revenue stream.
Revenues for the quarter ended March 31, 2000 increased 54.1% to $14.9
million, compared to $9.7 million recorded for the same period in
1999. Net loss for the quarter totaled ($3.3) million or ($.13) per
share, compared to net income of $493,000 or $.02 per share for the
same period last year. As of May 15, 2000, the Company is engaged in
12 e-commerce projects worldwide.
The e-PROFILE business segment generated revenues of $4.8 million and
a pre-tax loss of ($4.6) million. As previously announced, e-PROFILE
plans to file a registration statement with the Securities and
Exchange Commission in the coming months for a proposed public
offering of common stock. The timing and size of the offering are
dependent on market conditions and other factors.
8
<PAGE>
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated selected statement of
operations data:
<TABLE>
<CAPTION>
----------------------------------------------------------- --------------------------------
QUARTER ENDED
MARCH 31,
----------------------------------------------------------- --------------------------------
DOLLARS IN THOUSANDS 2000 1999
----------------- --------------
<S> <C> <C>
Revenues
Products $ 2,806 $ 3,286
Services 9,306 4,302
Software maintenance and other 2,765 2,067
----------------- --------------
Total revenues $ 14,877 $ 9,655
================= ==============
Percentage Relationship to Total Revenues
Revenues
Products 18.9% 34.0%
Services 62.5 44.6
Software maintenance and other 18.6 21.4
----------------- --------------
Total revenues 100.0 100.0
Operating expenses
Product development 40.2 36.1
Product support 7.1 8.5
Services 44.1 22.1
Sales and marketing 22.3 19.2
General, administrative and other 21.7 9.2
----------------- --------------
Total operating expenses 135.4 95.1
Earnings (loss) from operations (35.4) 4.9
Interest income, net 2.9 3.1
----------------- --------------
Earnings (loss) before income taxes (32.5) 8.0
Income tax provision (benefit) (10.4) 2.9
----------------- --------------
Net earnings (loss) (22.1%) 5.1%
----------------------------------------------------------- ================= ==============
</TABLE>
THREE MONTHS ENDED MARCH 31, 2000, COMPARED TO THREE MONTHS ENDED MARCH 31, 1999
REVENUES. Revenues increased $5.2 million, or 54.1%, in the first quarter of
2000 as compared to the first quarter of 1999. The most significant growth was
in service revenue, which increased by $5.0 million, or 116.3%. Most of the
service growth is attributable to the increased levels of Sanchez and e-PROFILE
implementation activity associated with e-banking projects and processing
revenue from e-PROFILE. Product revenue decreased by $480,000 or 14.6% from the
first quarter of 1999 to the first quarter of 2000 reflecting the Company's
switch in its pricing model to usage-based pricing versus one-time license fees
to lower the initial investment for potential customers. Sales efforts have been
more focused on this pricing model versus the Company's traditional one-time
license fee model. This focus, and the resulting lower closure of one-time
license fee contract revenue, also contributed to the decline in product
revenues. Software maintenance and other revenue increased by $698,000, or
33.8%, in the first quarter of 2000, due primarily to an increase in the
Company's supported client base.
PRODUCT DEVELOPMENT. Product development expenses increased $2.5 million, or
71.3%, in the first quarter of 2000, due to costs associated with increased
staffing, e-PROFILE professional fees, expanded facilities and other overhead
costs. Staffing increased 30% for this area of the Company primarily due to the
Company's continued development focus on extending its technology into areas
that will become new revenue sources.
PRODUCT SUPPORT. Product support expenses increased by $239,000, or 29.0%, in
the quarter ended March 31, 2000, primarily due to the cost required to support
the larger converted client base.
9
<PAGE>
SERVICES. Service expenses increased by $4.4 million, or 206.9%, during the
first quarter of 2000. The increase was primarily due to the additional
resources needed to support the increased service revenue for Sanchez and
e-PROFILE. The gross margin relative to associated revenues was 29.5% for the
first quarter of 2000, compared to 50.3% in the same period last year. This
decrease can be attributed to the increase in subcontractors for e-banking
projects and margins associated with processing revenues.
SALES AND MARKETING. Sales and marketing expenses increased by $1.5 million, or
79.0%, in the 1999 period due to the costs associated with increased staffing,
professional fees and advertising expenses.
GENERAL, ADMINISTRATIVE AND OTHER. These expenses increased by $2.3 million, or
264.0%, in 2000 due to increased staffing and professional fees at e-PROFILE, as
well as higher incentive pay.
INCOME TAX PROVISION. Taxes in the first quarter of 2000 were 32.0% of income
before income taxes, as compared to 36.0% in the same quarter last year. The
decrease is primarily due to the tax benefit derived from the foreign sales
corporation.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents were $31.8 million at March 31, 2000. Cash provided
by operating activities for the three months ended March 31, 2000 was $3,000
as compared to $4.4 million of cash used by operating activities during the
same period in 1999. Accounts receivable increased by $2.0 million in the
first quarter of 2000 primarily as a result of increased service revenues.
Income tax refund receivable increased by $746,000 as a net result of the
income tax benefit recognized in the first quarter of 2000, offset by the
receipt of refunds for prior periods. The above use of the cash was offset by
an increase in accounts payable and accrued expenses, deferred revenues and
stock based compensation. The Company continues to expect a certain amount of
variability in the payment timing for major contract milestones, which will
impact cash flow from operations during any given period.
During the first quarter of 2000, the Company used $1.2 million for investing
activities. The Company's use of cash was primarily dedicated to the purchase of
$1.3 million fixed assets due to increased staffing and equipment at the
e-PROFILE processing center.
Financing activities contributed $7.6 million of cash during the three months
ended March 31, 2000. The exercise of stock options during the first quarter of
2000 contributed $4.6 million and an investment in e-PROFILE from a venture
capital fund added $3.0 million in cash provided by financing activities.
The Company currently anticipates that cash generated from operations and
existing cash balances will be sufficient to satisfy its operating and
capital cash needs for the foreseeable future. Should the Company's business
expand more rapidly than expected, the Company believes that additional bank
credit, if necessary, would be available to fund such operating and capital
requirements.
The Company believes that its business is generally not seasonal; however, the
Company has historically experienced, and can be expected to continue to
experience, a certain degree of variability in its quarterly revenue, earnings
and cash flow patterns. This variability is typically driven by significant
events, which directly impact the recognition and billing of project-related
revenues. Examples of such events include the timing of new business contract
closings and the initiation of product and service fee revenue recognition,
one-time payments from existing clients relative to license expansion rights
(required to process a greater number of customer accounts or expand the number
of permitted users) and completion of implementation project roll outs and the
related revenue recognition. Because a high percentage of the Company's expenses
are relatively fixed, a variation in the timing of the initiation or the
completion of client projects, particularly at or near the end of any quarter,
can cause significant variations in operating results from quarter to quarter.
As noted earlier, however, the Company believes that over the course of time the
ongoing monthly revenue stream associated with the e-PROFILE outsourcing model
will result in more predictable quarter-to-quarter revenues.
FORWARD-LOOKING STATEMENTS
The Company's forward-looking statements about its revenues, earnings, market
predictions and business development have
10
<PAGE>
been derived from its operating budgets and forecasts which are based upon
detailed assumptions about many important factors. Several important factors may
cause the Company's actual results to differ materially from those contemplated
by any forward-looking statements made by the Company. These factors include the
demand for products and services in the financial services industry, competition
among software and operational and technology outsourcing companies serving that
industry, the timing of new contract closings, the potential delays in the
implementation of products and services, the success of the Company's e-PROFILE
business model, e-PROFILE's limited operating history, the extent to which the
Internet will be used for financial services and products and other significant
events of revenue recognition affecting the Company's quarterly results, the
development of the top-tier and direct banking markets, market acceptance of the
Company's products and services within these markets, the Company's ability to
protect its intellectual property rights, the risks inherent in expansion, the
potential adverse impact of security breaches and the Company's ability to
continue to improve its products and services. Nothing in this Form 10-Q is
intended to constitute an offer to sell or solicit an offer to buy any
securities of e-PROFILE. The offering will be made only by means of prospectus
contained in a registration statement to be filed with the Securities and
Exchange Commission and will be sold through underwriters engaged by the
company.
11
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
INTEREST RATE RISK
The Company's exposure to market risk for changes in interest rates relate
primarily to the Company's cash equivalents. The Company does not have any
derivative financial instruments in its portfolio. The Company is averse to
principal loss and ensures the safety and preservation of its invested funds by
limiting default risk, market risk and reinvestment risk. The Company does not
expect any material loss with respect to its cash equivalents.
FOREIGN CURRENCY RISK
The Company does not use foreign exchange forward contracts. All contractual
arrangements with international customers are denominated in U.S. dollars.
12
<PAGE>
SANCHEZ COMPUTER ASSOCIATES, INC.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
No other applicable items.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SANCHEZ COMPUTER ASSOCIATES, INC.
/s/ Thomas F. McElwee
Thomas F. McElwee
Senior Vice President and Chief
Financial Officer
Date: May 15, 2000
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2000 AND THE CONSOLIDATED STATEMENT
OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 31,801
<SECURITIES> 0
<RECEIVABLES> 14,886
<ALLOWANCES> 288
<INVENTORY> 0
<CURRENT-ASSETS> 55,985
<PP&E> 12,378
<DEPRECIATION> 5,790
<TOTAL-ASSETS> 66,729
<CURRENT-LIABILITIES> 14,798
<BONDS> 0
0
0
<COMMON> 249
<OTHER-SE> 51,200
<TOTAL-LIABILITY-AND-EQUITY> 66,729
<SALES> 0
<TOTAL-REVENUES> 14,877
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 20,141
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (425)
<INCOME-PRETAX> (4,839)
<INCOME-TAX> (1,548)
<INCOME-CONTINUING> (3,291)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,291)
<EPS-BASIC> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
