Epiq Systems Announces Third Quarter 2010 Results Led By 64% Growth In Operating Revenue For EDiscovery

KANSAS CITY, Kan., Oct. 26, 2010 (GLOBE NEWSWIRE) -- Epiq Systems, Inc. (Nasdaq:EPIQ) today announced results of operations for the third quarter of 2010 with operating revenue (total revenue before operating revenue from reimbursed direct costs) of $52.0 million compared to $51.1 million for the same period last year. September 30, 2010 year-to-date operating revenue was $157.1 million compared to $160.9 million for the prior year. Operating revenue in the third quarter reflects a new all-time high of $20.0 million for the eDiscovery segment.  The year-over-year comparisons of total operating revenue reflect the planned conclusion of the major analog-to-digital television conversion contract that was completed in the latter part of 2009. 

On October 1, the company acquired Jupiter eSources LLC for $60 million cash and an earn-out opportunity based on future revenue growth. Jupiter develops, supports and markets a proprietary software product, AACER® (Automated Access to Court Electronic Records), that assists creditors including banks, mortgage processors, and their administrative services professionals to streamline processing of their portfolios of loans in bankruptcy cases.

In addition, the Board of Directors approved the company's second quarterly cash dividend of 3.5 cents per common share payable November 18, 2010. The Board of Directors also approved up to $35 million in share repurchases in a new program, and the company intends to enter into a plan on or about November 1, 2010.

Net income for the third quarter of 2010 was $4.5 million, $0.12 per share, compared to $4.9 million, $0.12 per share, for the year ago quarter. September 30, 2010 year-to-date net income was $10.8 million, $0.28 per share, compared to $11.0 million, $0.28 per share, for the prior year. September 30, 2010 year-to-date net income includes $1.6 million for a voluntary settlement related to a shareholder derivative action, which was finalized during the third quarter of 2010.