<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998
OR
[ ] 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: 33-45417
THE BISYS GROUP, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 13-3532663
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
</TABLE>
150 CLOVE ROAD, LITTLE FALLS, NEW JERSEY
07424
(Address of principal executive offices)
(Zip Code)
973-812-8600
(Registrant's telephone number, including area code)
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 REPORT(S), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
----- -----
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE:
Class Shares Outstanding at January 25, 1999
- -------------------------------------- --------------------------------------
Common Stock, par value $.02 per share 26,798,834
--------------------------------------
This document contains 14 pages.
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THE BISYS GROUP, INC.
INDEX TO FORM 10-Q
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheet as of December 31, 1998
and June 30, 1998 3
Condensed Consolidated Statement of Operations for the six months
ended December 31, 1998 and 1997 4
Condensed Consolidated Statement of Cash Flows for the six months
ended December 31, 1998 and 1997 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Results of Operations and 8
Financial Condition
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
EXHIBIT INDEX 14
</TABLE>
2
<PAGE> 3
PART I
ITEM 1. FINANCIAL STATEMENTS
THE BISYS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
December 31, June 30,
1998 1998
------------ --------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 36,943 $ 93,403
Accounts receivable, net 84,960 73,693
Deferred tax asset 4,421 4,660
Prepaid expenses and other 10,916 8,484
-------- --------
Total current assets 137,240 180,240
Property and equipment, net 46,777 37,478
Intangible assets, net 142,255 102,663
Other assets 24,918 13,720
-------- --------
Total assets $351,190 $334,101
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $ 79 $ 124
Accounts payable 11,761 11,626
Short-term borrowings 20,000 -
Other current liabilities 62,055 70,668
-------- --------
Total current liabilities 93,895 82,418
Long-term debt 739 1,578
Deferred tax liability 9,277 10,451
Other liabilities 5,475 1,364
-------- --------
Total liabilities 109,386 95,811
-------- --------
Stockholders' equity:
Common stock, $.02 par value, 80,000,000 shares authorized,
26,692,245 and 26,670,388 shares issued, respectively 534 533
Additional paid-in capital 181,379 173,683
Retained earnings 60,008 66,229
Less treasury stock at cost, 1,917 and 57,895 shares, respectively (117) (2,155)
-------- --------
Total stockholders' equity 241,804 238,290
-------- --------
Total liabilities and stockholders' equity $351,190 $334,101
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
3
<PAGE> 4
THE BISYS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- --------------------------
1998 1997 1998 1997
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Revenues $111,958 $91,431 $213,882 $182,893
-------- ------- -------- --------
Operating costs and expenses:
Service and operating 63,895 53,671 123,767 107,889
General and administrative 16,989 13,972 33,374 29,578
Selling and conversion 6,079 4,378 11,118 8,534
Research and development 2,935 2,854 6,116 5,725
Amortization of intangible assets 1,952 891 3,460 1,779
Merger expenses and other charges - - 400 11,998
Acquired in-process research and development - - 19,000 -
-------- ------- -------- --------
Operating earnings 20,108 15,665 16,647 17,390
Interest income, net 243 1,025 1,040 2,050
-------- ------- -------- --------
Income before income taxes 20,351 16,690 17,687 19,440
Income taxes 8,142 6,676 14,677 7,803
-------- ------- -------- --------
Net income $ 12,209 $10,014 $ 3,010 $ 11,637
======== ======= ======== ========
Basic earnings per share $ 0.46 $ 0.38 $ 0.11 $ 0.44
======== ======= ======== ========
Diluted earnings per share $ 0.44 $ 0.37 $ 0.11 $ 0.43
======== ======= ======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
4
<PAGE> 5
THE BISYS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
-----------------------------
1998 1997
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 3,010 $ 11,637
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 10,601 7,049
Write-off of acquired in-process research and development 19,000 -
Deferred income tax provision 778 2,327
Change in operating assets and liabilities, net of effects from acquisitions (32,226) 7,924
-------- --------
Net cash provided by operating activities 1,163 28,937
-------- --------
Cash flows from investing activities:
Acquisition of businesses (20,340) -
Net cash acquired in acquisitions 4,554 1,490
Capital expenditures, net (13,710) (8,705)
Proceeds from sales of investments - 1,203
Purchase of investments (2,899) (6,513)
Purchase of intangible assets (187) (1,383)
Other 264 301
-------- --------
Net cash used in investing activities (32,318) (13,607)
-------- --------
Cash flows from financing activities:
Proceeds from short-term borrowings 20,000 -
Repayment of debt (275) (2,080)
Proceeds from exercise of stock options 5,938 3,017
Repurchases of common stock (50,968) -
-------- --------
Net cash provided by (used in) financing activities (25,305) 937
-------- --------
Net increase (decrease) in cash and cash equivalents (56,460) 16,267
Cash and cash equivalents at beginning of period 93,403 79,951
-------- --------
Cash and cash equivalents at end of period $ 36,943 $ 96,218
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
5
<PAGE> 6
THE BISYS GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. THE COMPANY
The BISYS(R) Group, Inc. and subsidiaries (the "Company") is a leading
national provider of outsourcing solutions to and through financial
organizations.
The condensed consolidated financial statements include the accounts of
The BISYS Group, Inc. and its subsidiaries and have been prepared
consistent with the accounting policies reflected in the 1998 Annual
Report on Form 10-K filed with the Securities and Exchange Commission
and should be read in conjunction therewith. The condensed consolidated
financial statements include all adjustments (consisting only of normal
recurring adjustments) which are, in the opinion of management,
necessary to present fairly this information.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. The most significant
estimates are related to the allowance for doubtful accounts,
intangible assets, merger expenses and other charges, acquired
in-process research and development, income taxes and contingencies.
Actual results could differ from these estimates in the near term.
3. EARNINGS PER SHARE
Basic and diluted EPS computations for the three and six months ended
December 31, 1998 and 1997 are as follows (in thousands, except per
share amounts):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
---------------------- -----------------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Basic EPS
---------
Net income $12,209 $10,014 $ 3,010 $11,637
======= ======= ======= =======
Weighted average common shares outstanding 26,643 26,199 26,497 26,156
======= ======= ======= =======
Basic earnings per share $ 0.46 $ 0.38 $ 0.11 $ 0.44
======= ======= ======= =======
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
---------------------- -----------------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Diluted EPS
-----------
Net income $12,209 $10,014 $ 3,010 $11,637
======= ======= ======= =======
Weighted average common shares outstanding 26,643 26,199 26,497 26,156
Assumed conversion of common shares issuable
under stock option plans 1,218 941 1,078 1,044
------- ------- ------- -------
Weighted average common and common equivalent
shares outstanding 27,861 27,140 27,575 27,200
======= ======= ======= =======
Diluted earnings per share $ 0.44 $ 0.37 $ 0.11 $ 0.43
======= ======= ======= =======
</TABLE>
6
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Certain stock options were not included in the computation of diluted
EPS because the options' exercise price was greater than the average
market price of common shares during the period, as follows (in
thousands, except per share amounts):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
--------------------------------- ------------------------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Number of options excluded 91 1,650 532 1,348
Option price per share $48.00 $32.25 to $39.00 $44.50 to $48.00 $34.00 to $39.00
</TABLE>
4. BUSINESS COMBINATIONS
On July 16, 1998, the Company completed its acquisition of Corelink
Resources, Inc. (Corelink), which the Company has held a minority
interest in since fiscal 1995. On August 10, 1998, the Company acquired
Potomac Insurance Marketing Group, Inc. (Potomac). Both transactions
have been accounted for by the purchase method of accounting and
involved total cash consideration of $20.3 million. The operations of
both Corelink and Potomac are included in the consolidated results of
operations from the dates of acquisition. Pro forma information has not
been presented due to lack of materiality.
On September 16, 1998, the Company completed its acquisition of
Greenway Corporation (Greenway) through the issuance of 968,202 shares
of BISYS common stock held in treasury and issuance of 148,795
equivalent stock options for all of the outstanding shares and stock
options of Greenway. The acquisition, valued at approximately $43.8
million, was treated as a purchase for accounting purposes, and,
accordingly, the assets and liabilities were recorded based on their
fair values at the date of the acquisition. Of the total purchase
price, $15.6 million was allocated to goodwill, $7.4 million to other
identifiable intangible assets, and $1.8 million to net tangible
assets. In addition, $19.0 million was allocated to acquired in-process
research and development, which was charged to operations at the time
of the acquisition. Greenway's operations are included in the
consolidated results of operations from the date of the acquisition.
Pro forma information has not been presented due to lack of
materiality.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The Company provides outsourcing solutions to and through financial
organizations which is reported as a single segment. The following table
presents the percentage of revenues represented by each item in the Company's
condensed consolidated statement of operations for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
---------------------- ------------------------
1998 1997 1998 1997
----- ----- ----- -----
<S> <C> <C> <C> <C>
Revenues 100.0% 100.0% 100.0% 100.0%
----- ----- ----- -----
Operating costs and expenses:
Service and operating 57.1 58.7 57.9 59.0
General and administrative 15.2 15.3 15.6 16.2
Selling and conversion 5.4 4.8 5.2 4.7
Research and development 2.6 3.1 2.8 3.1
Amortization of intangible assets 1.7 1.0 1.6 1.0
Merger expenses and other charges - - 0.2 6.5
Acquired in-process research and development - - 8.9 -
----- ----- ----- -----
Operating earnings 18.0 17.1 7.8 9.5
Interest income 0.2 1.1 0.5 1.1
----- ----- ----- -----
Income before income taxes 18.2 18.2 8.3 10.6
Income taxes 7.3 7.3 6.9 4.3
----- ----- ----- -----
Net income 10.9% 10.9% 1.4% 6.3%
===== ===== ===== =====
</TABLE>
COMPARISON OF THE THREE MONTHS ENDED DECEMBER 31, 1998 WITH THE THREE MONTHS
ENDED DECEMBER 31, 1997.
Revenues increased 22.5% from $91.4 million for the three months ended
December 31, 1997 to $112.0 million for the three months ended December
31, 1998. This growth was derived from sales to new clients, existing
client growth, cross sales to existing clients and revenues from
acquired businesses, partially offset by lost business.
Service and operating expenses increased 19.1% from $53.7 million during
the three months ended December 31, 1997 to $63.9 million for the three
months ended December 31, 1998, and decreased as a percentage of
revenues from 58.7% to 57.1%. The dollar increase resulted from
additional costs associated with greater revenues.
General and administrative expenses increased 21.6% from $14.0 million
during the three months ended December 31, 1997, to $17.0 million for
the three months ended December 31, 1998, and decreased as a percentage
of revenues from 15.3% to 15.2%. The dollar increase primarily resulted
from additional costs associated with recent acquisitions.
Interest income was $0.8 million less for the three months ended
December 31, 1998 compared to the same period last year due to the lower
levels of invested cash and cash equivalents and higher interest expense
associated with short-term borrowings.
The income tax provision of $8.1 million for the three months ended
December 31, 1998 increased from $6.7 million for the three months ended
December 31, 1997 primarily due to higher taxable income. The provision
represents an effective tax rate of 40% for both periods.
COMPARISON OF THE SIX MONTHS ENDED DECEMBER 31, 1998 WITH THE SIX MONTHS ENDED
DECEMBER 31, 1997.
Revenues increased 16.9% from $182.9 million for the six months ended
December 31, 1997 to $213.9 million for the six months ended December
31, 1998. This growth was derived from sales to new clients, existing
client growth, cross sales to existing clients and revenues from
acquired businesses, partially offset by lost business.
Service and operating expenses increased 14.7% from $107.9 million
during the six months ended December 31, 1997 to $123.8 million for the
six months ended December 31, 1998, and decreased as a percentage of
8
<PAGE> 9
revenues from 59.0% to 57.9%. The dollar increase resulted from
additional costs associated with greater revenues.
General and administrative expenses increased 12.8% from $29.6 million
during the six months ended December 31, 1997, to $33.4 million for the
six months ended December 31, 1998, and decreased as a percentage of
revenues from 16.2% to 15.6%. The dollar increase primarily resulted
from additional costs associated with recent acquisitions. The decrease
as a percentage of revenues resulted from further utilization of
existing general and administrative support resources.
During the six months ended December 31, 1998, the Company wrote off
$19.0 million of acquired in-process research and development associated
with the acquisition of Greenway and incurred $0.4 million of
merger-related expenses.
The income tax provision of $14.7 million for the six months ended
December 31, 1998 increased from $7.8 million for the six months ended
December 31, 1997 primarily due to higher taxable income. The provision
represents an effective tax rate of 40% for both periods, excluding the
nonrecurring nondeductible charge of $19.0 million related to acquired
in-process research and development incurred during the six months ended
December 31, 1998.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1998, the Company had cash and cash equivalents of
$36.9 million and working capital of approximately $43.3 million. At
December 31, 1998, the Company had outstanding borrowings of $20.0
million against its revolving credit facility to support working
capital requirements. The credit facility bears interest at LIBOR plus
a margin not to exceed 1.25%, or 6.22% at December 31, 1998. At
December 31, 1998, the Company had $0.6 million outstanding in the form
of letters of credit. The weighted average interest rate on other
outstanding long-term borrowings of $0.8 million at December 31, 1998
was 8.79%.
For the six months ended December 31, 1998, operating activities
provided cash of $1.2 million. Changes in operating assets and
liabilities utilized cash of $32.2 million as a result of increases in
accounts receivable due to revenue growth and reduction in accrued
liabilities due largely to payments associated with client marketing
programs that are administered by the Company's Fund Services division.
The Company expects cash flow from operations to increase in the second
half of fiscal year 1999. Investing activities used cash of $32.3
million primarily for the acquisition of businesses of $20.3 million
and capital expenditures of $13.7 million offset by cash acquired in
acquisitions of $4.6 million. Financing activities used cash of $25.3
million primarily for the repurchase of common stock of $51.0 million
offset by borrowings of $20.0 million and $5.9 million of proceeds from
the exercise of stock options.
In accordance with the Company's stock buy-back program, the Company
purchased approximately 1.2 million shares of its common stock for
approximately $51.0 million in order to effect the acquisition of
Greenway and for issuance of stock in connection with the exercise of
stock options.
In January 1999, the Company's Board of Directors authorized a new
stock buy-back program of up to $100 million of its outstanding common
stock. Purchases will occur from time-to-time in the open market to
offset the possible dilutive effect of shares to be issued under
employee benefit plans, for possible use in future acquisitions and for
general and other corporate purposes. This new program supercedes and
replaces the share repurchase program previously authorized by the
Board of Directors.
MERGER EXPENSES AND OTHER CHARGES
At December 31, 1998, approximately $1.2 million of costs to integrate
new operations arising from prior acquisitions and costs relating to
the realignment of certain operations are included in accrued
liabilities on the accompanying balance sheet. Approximately $0.9
million of such expenses were paid or charged against the related
accruals during the three months ended December 31, 1998.
ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT
In September 1998, the Company acquired Greenway Corporation (Greenway)
through the issuance of common stock valued at approximately $43.8
million. Of the total purchase price, $19.0 million was allocated to
acquired in-process research and development, which was charged to
operations at the time of acquisition.
9
<PAGE> 10
The amount allocated to acquired in-process research and development
was based on an independent appraisal, employing a discounted cash flow
approach, and relates to the development of 32-bit and 32-bit enhanced
products for the Company's check imaging software. At the acquisition
date, the 32-bit product was estimated to be 75% complete and valued at
$8.7 million, while the 32-bit enhanced product was estimated to be 50%
complete and valued at $10.3 million.
Significant assumptions used in the valuation of the acquired
in-process research and development were as follows:
Estimated costs to complete $2.1 million
Anticipated completion date January 2000
Projected annual revenues $30 million
Discount rate 20%
Discount period 9 years
Currently, the development efforts are proceeding ahead of schedule,
and it is anticipated that technological feasibility of the products
will be attained in the fiscal third quarter and development efforts
completed by the end of the fiscal year.
Research and development expenditures related to this product
development effort approximated $375,000 for the three months ended
December 31, 1998, and are included in the consolidated statement of
operations.
YEAR 2000
The Company is addressing the Year 2000 issues associated with its
existing computer systems and software applications utilizing both
internal and external resources to identify and remediate these matters
throughout the organization. The Company has completed its risk
assessment and testing plans for internal mission critical information
systems and continues to remediate other systems that are not currently
Year 2000 ready. The Company anticipates that all of its internal
mission critical information systems will be tested and Year 2000 ready
by March 31, 1999. In the event such systems are not Year 2000 ready by
December 31, 1999, it could have a material adverse impact on the
Company's business and results of operations.
The Company uses third party provided software and systems in certain
of its businesses for such tasks as account and information statement
processing, fund accounting, and 401(k) plan record keeping. If third
parties upon which the Company depends, including telecommunications
and electrical power providers, are unable to address their Year 2000
issues in a timely manner, it could result in a material adverse
financial risk to the Company. In order to minimize this risk, the
Company is devoting resources necessary to develop appropriate business
continuity plans. These contingency plans will include alternative
systems and vendors, disaster recovery hot sites, alternative power
sources, and manual processes. These contingency plans are expected to
be completed prior to June 30, 1999.
The Company's Year 2000 progress, the testing of remediated software,
and contingency plans have been and will continue to be the subject of
independent verification and validation by the Company's Internal Audit
function. Internal Audit reports on Year 2000 are reviewed by senior
management and the Company's Board of Directors.
The Company believes it has developed an effective plan to address the
Year 2000 issues and that, based on available information, its Year
2000 transition will not have a material effect on its business,
operations, or financial results. The Company anticipates expenditures
for Year 2000 testing and remediation in the range of $3.0 to $4.0
million in fiscal 1999 and less than $1.5 million in the first half of
fiscal 2000. During the six months ended December 31, 1998, the Company
incurred Year 2000 expenditures of $1.3 million.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Except for the historical information contained herein, the matters
discussed in this quarterly report are forward-looking statements which
involve risks and uncertainties, including but not limited to economic,
competitive, governmental and technological factors affecting the
Company's operations, markets, services and related products, prices,
and other factors discussed in the Company's prior filings with the
Securities and Exchange Commission. Although the Company believes that
the assumptions underlying the forward-looking
10
<PAGE> 11
statements contained herein are reasonable, any of the assumptions
could be inaccurate. Therefore, there can be no assurance that the
forward-looking statements included in this quarterly report will prove
to be accurate. In light of the significant uncertainties inherent in
the forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by the Company
or any other person that the objectives and plans of the Company will
be achieved.
11
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PART II
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Stockholders of the Company, held on
November 16, 1998, the Stockholders approved the following
matters:
1. Re-election of all six Directors named below to hold
office until the next Annual Meeting of Stockholders
and until their successors have been duly elected and
qualified:
<TABLE>
<CAPTION>
Number of
Name of Director Votes in Favor
---------------- --------------
<S> <C>
Robert J. Casale 22,006,495
Thomas A. Cooper 22,006,340
Jay W. DeDapper 22,005,180
John J. Lyons 22,006,715
Lynn J. Mangum 22,006,933
Thomas E. McInerney 22,006,915
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C> <C>
2. 1999 Employee Stock
Purchase Plan 21,837,673 176,221 52,919
3. Appointment of PricewaterhouseCoopers LLP
as independent accountants for
fiscal year 1999 22,060,037 3,969 2,807
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
None.
(b REPORTS ON FORM 8-K
None.
12
<PAGE> 13
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.
THE BISYS GROUP, INC.
Date: February 11, 1999 By: /s/ Dennis R. Sheehan
------------------ -------------------------
Dennis R. Sheehan
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer)
13
<PAGE> 14
THE BISYS GROUP, INC.
EXHIBIT INDEX
EXHIBIT NO. PAGE
(27) Financial Data Schedule..................(electronic only)
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF THE BISYS GROUP, INC. AND SUBSIDIARIES FOR
THE SIX MONTHS ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 36,943
<SECURITIES> 0
<RECEIVABLES> 87,857
<ALLOWANCES> 2,897
<INVENTORY> 0
<CURRENT-ASSETS> 137,240
<PP&E> 90,806
<DEPRECIATION> 44,029
<TOTAL-ASSETS> 351,190
<CURRENT-LIABILITIES> 93,895
<BONDS> 0
0
0
<COMMON> 534
<OTHER-SE> 241,270
<TOTAL-LIABILITY-AND-EQUITY> 351,190
<SALES> 0
<TOTAL-REVENUES> 213,882
<CGS> 0
<TOTAL-COSTS> 123,767
<OTHER-EXPENSES> 17,234
<LOSS-PROVISION> 845
<INTEREST-EXPENSE> 506
<INCOME-PRETAX> 17,687
<INCOME-TAX> 14,677
<INCOME-CONTINUING> 3,010
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,010
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
