AVERT INC
8-K, 1998-04-09
COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
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                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 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)   March 3, 1998


                                   AVERT, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)



        Colorado                    0-239052                     84-1028716
 ---------------------------       ------------              ---------------
(State of other jurisdiction      (Commission               (I.R.S. Employer
 of incorporation)                 File Number)              Identification No.)



 301 Remington, Fort Collins, Colorado                         80524
 --------------------------------------                       --------
(Address of principal executive offices)                      Zip Code


Registrant's telephone number, including area code:  970-484-7722




                      301 Remington Fort Collins, CO 80524
           -----------------------------------------------------------
          (Former name or former address, if changed since last report)


<PAGE>


Item 5    Other Events

     a) Avert, Inc. announced fourth quarter,  year-end results and special cash
dividend.


Item 7    Financial Statements and Exhibits

     c)    Exhibits

     30   Press release dated March 3, 1998





























                                        2




<PAGE>




                                    SIGNATURE




     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.



                                            AVERT, INC.



April 8, 1998                               By: /s/  Dean A. Suposs
- ---------------------------                     --------------------------------
Date                                            Dean A. Suposs
                                                President
























                                        3


<PAGE>



                                  EXHIBIT INDEX



     Exhibit No.       Exhibit Description                                 Page
     -----------       -------------------                                 ----

         30            Press Release, dated                                  5
                       March 3, 1998






























                                        4






                                   EXHIBIT 30

FOR IMMEDIATE RELEASE:                                                      NEWS
March 3, 1998                                        Nasdaq National Market/AVRT
                                                            http://www.avert.com


                          AVERT, INC. ANNOUNCES RECORD
                       FOURTH QUARTER AND YEAR END RESULTS
                     New Customer Growth is up 57% from 1996
      Company Announces Payment of Special Cash Dividend of $.10 Per Share

FORT  COLLINS,  Colorado  -  Avert,  Inc.  (Nasdaq  National  Market/AVRT),   an
information  services company that provides  employment  background  checks to a
growing  nationwide  customer base,  today announced  financial  results for its
fourth quarter and year-ended December 31, 1997.

Net revenues for the fourth quarter  increased 10% to $2,412,000 from $2,199,000
in the same  period  in  1996.  Net  revenues  for 1997  also  reached  a record
$9,491,000,  up 18% from  $8,033,000 in 1996.  For the year ending  December 31,
1997,  the  Company  reported  $7,036,000  million  in  working  capital  and no
long-term debt.

Avert,  Inc.  also  announced the payment of a special cash dividend of $.10 per
common share  payable on March 23, 1998 to  shareholders  of record on March 16,
1998.

Fourth  quarter  net income grew 28% to reach  $341,000,  or 10 cents per share,
versus $266,000,  or $.08 cents per share, in the comparable  period a year ago.
The Company also reported  record net income for the year of  $1,218,000,  or 35
cents per share,  up 14% from  $1,066,000,  or $.31 cents per share, a year ago.
Avert's  net  margins  for the  fourth  quarter  and  year-end  were 14% and 13%
respectively.

The Company  achieved record growth in the number of new customers signed during
1997,  adding 3,068,  up 57% from 1,953 signed during 1996.  Fourth  quarter new
customer growth was 630, up 33% from 475 new customers  signed during the fourth
quarter of 1996.

"During  the past year,  we have seen our  revenue  growth  rate  continue  at a
healthy  pace,  although  declining in  comparison  to previous  periods,"  said
Suposs.  "We believe the reason for this is due in part to the  historically low
unemployment  rates facing most of our  customers.  We have continued to achieve
record numbers in signing new customers, and more aggressive sales programs have
shortened  the amount of time from their  sign-up date to their first  purchase.
However,  the low unemployment rate translates to fewer candidates per position,
thus decreasing our total sales per customer."

                                        5



<PAGE>




Revenue from criminal history reports for 1997 grew to $4,754,000, up 17% from a
year ago;  previous  employment  reports  and  credit  reports  advanced  35% to
$1,224,000;  motor vehicle driving records increased 5% to $1,000,000;  workers'
compensation  histories  declined 10% to  $1,114,000;  and services grew 102% to
$520,000.

"As the unemployment  rate remains low, we have found that employers are anxious
to hire good  candidates  quickly.  We have seen an  increase  in the demand for
products and services that offer quick turnaround time," continued Suposs.  "Our
focus on  operational  improvements  this  year  places  us in the  position  to
capitalize on our ability to rapidly  broaden our product  offering to meet this
demand." During the first quarter of 1997, the Company introduced  AVERTnet,  an
interactive web-based order management system to a group of beta customers. This
version  replaced the previous  character-based  order entry,  report  retrieval
system with  expanded  functionality  and  features.  In the second  quarter the
Company rolled out AVERTnet to all  customers.  The first phase of the Company's
internal  software   conversion   project  was  well  received  with  additional
enhancements incorporated through the end of 1997.

On February 4, 1997, the Avert, Inc. Board of Directors  announced a decision to
adhere to the Redeemable  Warrant  expiration date of April 30, 1997.  Issued in
1994 during the Company's  initial  public  offering,  the 1,000,000  Redeemable
Warrants  expired on April 30,  1997.  The number of shares  bought  through the
conversion was 88,125, with total net proceeds to the Company of $572,812.  This
increased the total number of shares outstanding to 3,488,125.

During  the  Company's  annual  meeting  held June 11,  1997,  the  Shareholders
approved a proposal to increase the number of incentive stock options  available
for employees to 525,000, up from 363,337.

Through its  headquarters  in Fort  Collins,  Avert is an  information  services
company  that  provides  applicant  screening  and  employment   information  to
thousands of clients  nationwide.  Products and services include public records,
reference checking, custom services and the KnowledgeLink Help Desk.

<TABLE>
<CAPTION>

EARNINGS RECAP                                                     Fourth Quarter Ended                          Year Ended
                                                                       December 31,                              December 31,
                                                                 1997                1996                1997                1996
                                                                       (unaudited)                                (audited)
<S>                                                          <C>                 <C>                 <C>                 <C> 
Revenue ............................................         $ 2,412,000         $ 2,199,000         $ 9,491,000         $ 8,033,000
Net Income .........................................         $   341,000         $   266,000         $ 1,218,000         $ 1,066,000
Net Income per common share ........................         $       .10         $       .08         $       .35         $       .31
Weighted avg. shares outstanding ...................           3,488,000           3,439,000           3,461,000           3,450,000

<CAPTION>
BALANCE SHEET DATA                                           December 31,        December 31,
                                                                1997                1996
<S>                                                          <C>                 <C>    
Working Capital ....................................         $ 7,036,000         $ 6,175,000
Total Assets .......................................         $11,398,000         $ 9,395,000
Total Liabilities ..................................         $   963,000         $   709,000
Shareholders' Equity ...............................         $10,435,000         $ 8,686,000
</TABLE>

CONTACT:

Avert, Inc.
Investor Relations
800.367.5933

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