PADUCAH, Ky. (June 30, 2016) – Computer Services, Inc. (CSI) (OTCQX: CSVI) announced today that shareholders elected three directors and approved the ratification of the appointment of RSM US LLP as independent auditors for fiscal year 2017.
In comments to shareholders, Steven A. Powless, CEO of CSI, stated, “We reported record results in fiscal 2016 marking our 16th consecutive year of increased revenues, 19th consecutive year of increased net income and our 44th consecutive year of increased cash dividends for our shareholders. Our record results benefited from our excellent record of customer satisfaction, contract renewals and new accounts opened during the year. For fiscal 2016, we signed 264 new contracts and now have customers in all 50 states and in 20 foreign countries.
“Our outlook for fiscal 2017 remains positive based on the pipeline of new contracts signed, higher cross-sales and an excellent response to new products and services introduced recently,” Powless continued. “We expect our forward momentum for the first half of fiscal 2017 to be offset partially by the trailing effects of mergers involving customers over the past few years. We expect revenues to increase in the first half of fiscal 2017, but at a modest rate due to lost recurring revenue from core customers that were acquired.
"In addition, we expect our earnings to be down slightly in the first half of fiscal 2017 due to lower early contract termination fees received compared with the prior year, reflecting a slowdown in merger activity involving customers. We expect our second half revenues and earnings to be stronger as we gain momentum from new account sales and higher cross sales. We also continue to be diligent with expense management measures to ensure that we are meeting our financial objectives and believe our overall performance in fiscal 2017 will show our positive trends in revenues and net income.
“Our strategy for the future remains focused on customer retention and satisfaction, sales and market expansion, marketing and brand awareness, and product innovation. We believe these strategies will drive our future growth, earnings and returns to our shareholders,” Powless concluded.
At the meeting, shareholders elected the following directors for three-year terms:
- Steven A. Powless – CEO, Computer Services, Inc.
- Dr. Linda Johnson Vitale – Partner, Manchester Capital
- Robert L. Walker – Recently Retired Senior Vice President and CFO, Western and Southern Financial Group
About Computer Services, Inc.
Computer Services, Inc. (CSI) delivers core processing, managed services, mobile and Internet solutions, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate customers across the nation. Exceptional service, dynamic solutions and superior results are the foundation of CSI’s reputation, and have resulted in the company’s inclusion in such top industry-wide rankings as the FinTech 100, Talkin’ Cloud 100 and MSPmentor Top 501 Global Managed Service Providers List. CSI’s stock is traded on OTCQX under the symbol CSVI. For more information about CSI, visit www.csiweb.com.
This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements except historical statements contained herein constitute “forward-looking statements.” Forward-looking statements are inherently uncertain and are based only on current expectations and assumptions that are subject to future developments that may cause results to differ materially. Readers should carefully consider: (i) economic, competitive, technological and governmental factors affecting CSI’s operations, customers, markets, services, products and prices; (ii) risk factors affecting the financial services information technology industry generally including, but not limited to, cybersecurity risks that may result in increased costs to CSI to protect against the risks, as well as liability or reputational damage to CSI in the event of a breach of our security; and (iii) other factors discussed in CSI's Annual Report, Quarterly Reports, Information and Disclosure Statements and other documents posted from time to time on the OTCQX website (www.otcqx.com), including without limitation, the description of the nature of CSI's business and its management discussion and analysis of financial condition and results of operations for reported periods. Unless required by law, CSI undertakes no obligation to update, and is not responsible for updating, the information contained in this report beyond the publication date, whether as a result of new information or future events, or to conform the statement to actual results or changes in CSI's expectations, or otherwise or for changes made to this document by wire services or Internet services.