Open Solutions, Glastonbury
Glastonbury-based Open Solutions, a provider of integrated enabling technologies for financial institutions throughout the United States and Canada, recently reported financial results for the three months ended March 31. Revenues for the first quarter of 2006 increased 77 percent to $66.7 million, from $37.7 million for the first quarter of 2005. GAAP (generally accepted accounting principles) net income per diluted share for the first quarter of 2006 increased 50 percent to 21 cents per diluted share, from 14 cents per diluted share in the first quarter of 2005.
Earnings before interest, taxes, depreciation, amortization, stock compensation expense and a nonrecurring gain as a result of an acquisition (adjusted EBITDA) for the first quarter of 2006 increased 81 percent to $13.6 million, from $7.5 million for the first quarter of 2005. Net income per diluted share adjusted for stock compensation expense and a nonrecurring gain as a result of an acquisition (non-GAAP net income) for the first quarter of 2006 increased 14 percent to 16 cents per diluted share, from 14 cents per diluted share in the first quarter of 2005.
Open Solutions’ management uses non-GAAP measures to evaluate the performance of its core business, to estimate future core performance and to compensate employees. Since management finds the measure to be useful, company officials said they believe that their investors benefit from seeing the Open Solutions’ results as management does in addition to seeing the GAAP results. The information facilitates management’s internal comparisons to the company’s historical operating results as well as to the operating results of its competitors.
Company officials said non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures, and it should be noted as well that Open Solutions’ non-GAAP information may be different from the non-GAAP information provided by other companies.
Open Solutions Chairman and Chief Executive Officer Louis Hernandez Jr. said, “We saw continued strong demand for Open Solutions’ full suite of financial industry-focused products and services in the first quarter, as demonstrated by total revenue increasing 77 percent and signed contract value increasing 67 percent over the same period in 2005. We are excited to have completed the BISYS Information Services acquisition and integration efforts are well under way. For the remainder of 2006, we look forward to continuing our growth trajectory, proceeding with the BISYS Information Services integration and generating strong returns from our strategic investments.”
Board Vice Chairman Elected
Walter L. Barber has been elected vice chairman of the board of directors for Thomaston Savings Bank.
Barber was voted a corporator of Thomaston Savings Bank in 1988 and has served as a member of the board of directors since 1993. Barber is currently the president of Chittenden Group in Naugatuck. He is active on various community boards, including the Naugatuck Chamber of Commerce, Naugatuck Economic Development Commission and Easter Seals. In 2001, Barber received the Naugatuck YMCA’s “Frank Zonino Volunteer of the Year” award.
He currently resides in Watertown with his wife and three sons.
