CBT systems, the educational software company which has changed its name to SmartForce, has recorded a strong recovery in the third quarter of 1999. Pre-tax profit more than doubled from $3.35 million (€3.1 million) in the third quarter of 1998 to $7.2 million, while sales increased from $35.18 million to $50.2 million.
"Not only did we post record revenues and strong earnings growth, but we showed positive progress against our key metrics for the fourth consecutive quarter," said chief executive officer Mr Gregory Priest. "By simultaneously taking a bold step that we believe will help ensure our market leadership over the next several years, we believe that we have built the foundation for a truly powerful franchise in professional education.'
Although pre-tax profit fell from $16.59 million to $9.4 million in the first nine months of the year, the latest quarter results indicate a continuation of the recovery in the second quarter. Revenue in the first nine months rose from $119.96 million to $137.63 million, the highest level recorded. Income from operations for the third quarter, before depreciation of acquired intangibles, amounted to $7.6 million. This represented a 385 per cent increase on the comparable period in 1998.
Reflecting real underlying growth, the net income per share rose from $0.06 to $0.11.
Chairman Mr Bill McCabe said there will be further strong growth in the last quarter, although its changed strategy will result in losses next year. Nevertheless, this strategy will make it a stronger and more profitable company, he added.
