UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 7, 2000
POLICY MANAGEMENT SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
SOUTH CAROLINA 1-10557 57-0723125
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
ONE PMSC CENTER (PO BOX 10)
BLYTHEWOOD, SC (COLUMBIA, SC) 29016 (29202)
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (803) 333-4000
N/A
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On January 7, 2000, Policy Management Systems Corporation announced it does
not expect to report earnings per share in excess of the low teens (cents per
share) for the fourth quarter.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(A) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED. Not Applicable.
(B) PRO FORMA FINANCIAL INFORMATION. Not Applicable.
(C) EXHIBITS.
99.1. Press release dated January 7, 2000.
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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 hereunto duly authorized.
POLICY MANAGEMENT SYSTEMS CORPORATION
(Registrant)
Date: January 7, 2000 Timothy V. Williams
Executive Vice President
(Chief Financial Officer)
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EXHIBIT INDEX
Exhibit
Number
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99.1 Press release dated January 7, 2000.
Timothy V. Williams Charles T. Conway Jr.
Executive Vice President & Director, Corporate Communications
Chief Financial Officer (803) 333-5348
(803) 333-5638 E-mail: [email protected]
E-mail: [email protected] ----------------------
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POLICY MANAGEMENT SYSTEMS CORPORATION EXPERIENCES WEAK FOURTH QUARTER
LICENSING AND SERVICES
EARNINGS IMPACTED BY CLIENT Y2K DISTRACTION
COLUMBIA, S.C., JAN. 7, 2000: Policy Management Systems Corporation
(NYSE: PMS) (PMSC) announced today that fourth quarter, 1999, licensing and
services will be down significantly from the same quarter last year and that it
does not expect to report earnings per share in excess of the low teens (cents
per share) for the quarter compared to $0.35 reported last year. The company
said its final results will be reported on February 10.
Preliminary results indicate that the company's initial license revenues
are expected to approximate $18 million compared with almost $27 million in the
1998 fourth quarter. The decline in licensing was largely driven by the U.S.
life and financial solutions unit that will report less than $2 million for the
quarter compared with $14 million last year. A substantial majority of the 1999
fourth quarter licenses were for new products released in 1999, especially
claims and eBusiness-related products. During the fourth quarter the company
also had two S3+ licenses, one of which was delayed from the third quarter. In
the aggregate, professional services revenues are not expected to exceed $101
million compared to $110 million in the 1998 fourth quarter. Preliminary
analysis indicates that client apprehension and distraction surrounding Y2K,
including so-called "Y2K lockdowns," have contributed substantially to these
results.
At the end of the third quarter, the company stated that it could not give
fourth quarter earnings estimates largely due to concerns about the
predictability of client decisions resulting from Y2K.
Larry Wilson, chairman and chief executive officer, said, "Although we have not
experienced any significant Y2K issues with our systems or products, our results
were
-more-
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adversely impacted by our clients and prospects preoccupation with their own Y2K
preparations and concerns. These results are extremely disappointing but were
not due to competitive losses. Our products continue to have a strong
competitive position and our new product offerings in claims and eBusiness
contributed substantially to new licensing this quarter. Looking ahead, we are
enthusiastic about our strategy of transitioning the company to its new business
model that focuses on increasing recurring transaction-based revenues,
particularly in claims, eBusiness products and business process outsourcing for
the financial services and property and casualty industries. I believe that as
our clients and prospects put their Y2K transition behind them, they will
increasingly look to us to help them upgrade their systems for eBusiness and new
technology."
PMSC, headquartered in Columbia, S.C., is the leader in providing
enterprise and electronic commerce application software, professional services,
and outsourcing designed to meet the needs of the global insurance and related
financial services industries. Information on PMSC and its products and services
can be found on the World Wide Web at http://www.pmsc.com.
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The Private Securities Litigation Reform Act of 1995 provided a "safe
harbor" for certain forward-looking statements. The forward-looking statements
contained in this release are subject to certain risks and uncertainties. Actual
results could differ materially from current expectations. Among the factors
which could affect the company's actual results and could cause results to
differ from those contained in the forward-looking statements contained herein
are customer acceptance of the company's new products and services, the success
of the company's market penetration efforts, and timing of customers' decisions
to enter into agreements for the company's products and services.
