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Philip G. Heasley

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Revenue increased year-over-year and sequentially. In particular, our international business continues to perform well, growing over 18 percent year-over-year.

We believe that the 60-month backlog provides additional visibility into the long-term, recurring nature of our business.

The Company continues to invest in a number of key areas including product, technology and our corporate infrastructure. We continue to see progress with our Proactive Risk Manager solution and see more interest in the market for payments convergence across the enterprise and for specific needs like transaction settlement. We believe our ongoing investments in BASE24-es are paying off. We signed a new license with a top bank in Pakistan and received customer acceptance from another BASE24-es user. We now have five stand-alone BASE24-es clients live in production environments running on a range of hardware platforms. We continue to validate the performance and efficiency of BASE24-es on multiple hardware platforms.

Our operating cash flow was very strong this quarter. Our healthy balance sheet positions us well to seek out opportunities in the market, in order to add to our solutions portfolio and continue to increase our international reach.

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