EPIQ Systems (EPIQ) Tops Q4 EPS by 4c

EPIQ Systems (NASDAQ: EPIQ) reported Q4 EPS of $0.22, $0.04 better than the analyst estimate of $0.18. Revenue for the quarter came in at $108.5 million versus the consensus estimate of $113.02 million.

EPIQ Systems sees FY2015 EPS of $0.86-$0.92, versus the consensus of $0.91. EPIQ Systems sees FY2015 revenue of $465-485 million, which may note compare to the consensus of $522.4 million.

"For the fourth quarter, operating revenue met our revised expectations and we achieved our highest levels of quarterly adjusted EBITDA and adjusted EPS of 2014. The results reflect progress executing strategies that leverage our capabilities and leading market positions to drive robust and profitable revenue," said Tom W. Olofson, chairman and CEO of Epiq Systems. "We also began to see an impact from cost efficiency initiatives to drive margin improvement in 2015 and beyond.

"The last year was also a transitional period for Epiq as we strengthened our management team and we are focused on a number of strategic and operational initiatives intended to drive our long term growth and financial performance. In 2015, we are focused on expanding our electronic discovery solutions to address emerging needs in managed services and information governance along with leveraging our international facilities and existing legal community relationships to grow our business. We expect investments in operations, client services and IT resources to support growth and deliver margin improvements.

"Our bankruptcy business performance in 2014 was stronger than expected considering that we are at the low end of the cycle. Interest rate increases could begin in the not too distant future and a significant amount of leveraged debt will come due in 2016. We believe these dynamics point to a new bankruptcy cycle starting within the next couple of years. Our track record, industry-leading reputation and strong relationships in the bankruptcy community, underscored by our work on the largest and most complex cases, position us well for the next cycle. We are also working to expand our reach into non-traditional creditor claims projects, which provide supplemental revenue outside of traditional bankruptcy work. Finally, in settlement administration, we anticipate modest revenue growth in 2015 driven by mass tort and federal agency opportunities, and emerging areas such as data breaches."

For earnings history and earnings-related data on EPIQ Systems (EPIQ) click here.

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