Cover-All Technologies Inc. (NYSE MKT: COVR), a Delaware corporation (“Cover-All” or the “Company”), today announced financial results for the quarter ended September 30, 2012.
- For the three months ended September 30, 2012, total revenues were $3.3 million compared to $3.4 million for the comparable period in 2011, a decrease of 3.4%, mainly due to a decrease in professional services revenues.
- License revenue for the three months ended September 30, 2012 was $238,000 compared to $1,000 for the same period in 2011.
- Support Services revenue for the three months ended September 30, 2012 was $2.2 million compared to $2.1 million in the same period in 2011, an increase of 5.7%.
- Professional Services revenue for the three months ended September 30, 2012 was $864,000 compared to $1.3 million for the same period in 2011 due to the timing of orders and availability of customization personnel.
- The balance sheet remains solid with stockholders’ equity at $14.4 million as of September 30, 2012. The Company completed the third quarter of 2012 with $1.8 million in cash and cash equivalents, $1.1 million in working capital and $2.0 in long-term debt.
- ACE Puerto Rico will implement the latest version of Cover-All Policy to modernize handling its Commercial Auto and Commercial Package lines of business.
- Old Republic General Insurance Corporation, a subsidiary of Old Republic International Corporation, began implementation of Cover-All’s new Policy solution, fully built out insurance Bureau Products, and its newly released Test Studio for use by its affiliate, Old Republic Construction Program Group.
- Release of Advanced Automated Policy Renewal as a new enhancement to Cover-All’s Policy functionality adds intuitive configuration capabilities and provides P&C insurers the flexibility to tailor their automated policy renewal processes beyond just rating and issuance.
- Cover-All’s Business Intelligence solution was recently profiled in a report evaluating insurance data mastery systems published by Celent, a Boston-based research and advisory firm specializing in financial services.
- BlueWave Claims was recently profiled in two reports evaluating insurance claims systems; one published by Novarica, a New York-based research and advisory firm specializing in financial services, and the second published by Aite, a Boston-based research and advisory firm also specializing in financial services.
- Imperium Commercial Finance Master Fund LP provided a $2.25 million credit facility for working capital purposes which will support Cover-All’s product/services expansion and growth initiatives.
John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, “As we’ve said all year, we expected to see increased traction related to our entirely redesigned Policy product and enterprise suite of products, late in the year, and that expectation has proven accurate. But just as accurate was our confidence that our new platform would resonate in an increasingly competitive marketplace. The ability to demonstrate our Development Suite of tools which allow customers to build and/or maintain their insurance products themselves combined with our extensive inventory of fully built out insurance products give customers what we believe is an unrivaled array of choices to best align with their business goals. The response from the marketplace, customers and prospects has been exactly what we expected, and the number of active sales discussions has increased proportionally. Throughout 2012, we have been providing demonstrations to a growing list of potential customers. Our broader suite of offerings, including robust business intelligence capabilities, claims solutions, and more encourages customers to consider a wider-array of configurations and options, further extending the discussions. But we are seeing steady and accelerating progress, as more and more customers move from evaluation phases to pricing and configuration phases. Our backlog for professional services has grown to more than $3 million, work we will be beginning in the fourth quarter of 2012 and continuing into 2013, setting the stage for a great start to 2013. And our pipeline of prospects, soon to turn into customers, has grown. This is the basis of our confidence that we will achieve record revenues for the sixth consecutive year.”