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Ultimate Software Credits Web Services for Q4 Results

Saying that it has achieved it goals of increasing recurring revenue and managing expenses, Ultimate Software , a Web-based payroll and workforce management service provider, yesterday announced financial results for its fourth quarter and fiscal year, both of which ended on Dec. 31, 2002.

The Weston, Fla.-based company reported that total revenues for the fourth quarter of 2002 increased 9 percent to $16.5 million (compared to $15.1 million for the same period of 2001). Recurring revenues were $6.4 million, an increase of 67 percent over the quarter in 2001. Net loss and net loss per share were $1.9 million and $0.11, respectively (compared to $3.5 million and $0.22 in 2001).

For the year, total revenues decreased 7 percent to $55.1 million from $59.5 million for 2001. Recurring revenues for the year increased 35 percent to $19.3 million (compared to $14.4 million for 2001). License revenue was $12.2 million for 2002 (compared to $16.8 million for 2001). Service revenues were $23.6 million for 2002 (a decrease from $28.3 million in 2001).

Net loss for the year was $14.6 million with a net loss per share of $0.90 (compared to a net loss of $8.8 million and a net loss per share of $0.55 for 2001).

"Delivering UltiPro with a new Web services architecture last year was a transformational milestone for us. It gives our sales team the ability to sell UltiPro not only as an in-house license but as a service through our hosted program Intersourcing and price it on a per-employee-per-month basis," said Scott Scherr, CEO, president and founder of Ultimate Software.

"The new architecture also takes our co-branding program for business service providers to a new level by giving them the ability to manage thousands of companies' payroll and HR needs," Scherr said.

Scherr added that Ultimate Software signed 63 contracts in the fourth quarter, 23 of those for the hosted product.

Ultimate Software is listed by ASPnews as a Top 20 Service Provider.

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