FNF Fidelity National Financial Inc

Sanchez Exceeds Fourth Quarter Revenue Guidance and Posts Record Annual Revenue of $96.4 Million MALVERN, Pa., Feb. 10 /PRNewswire-FirstCall/ -- Sanchez Computer Associates Inc. today reported the company exceeded its quarterly revenue and met its previously disclosed earnings estimates with revenue of $24.2 million and a net loss of $755,000, or $(0.03) per share for the fourth quarter ended Dec. 31, 2003. In addition, the company reported 2003 annual revenues increased by $3.4 million to a record high of $96.4 million from $93.0 million achieved in 2002. The company also reported an annual net loss of $10.2 million, or $(0.38) per share, which included a $9.5 million impairment charge, compared to 2002's annual net earnings of $3.9 million,or $0.15 per share. When comparing fourth quarter 2003 to fourth quarter 2002, revenues decreased approximately 7 percent to $24.2 million from $26.1 million. The company reported a net loss of $755,000, or $(0.03) per share in 2003's fourth quarter compared to net earnings of $2.1 million, or $0.08 per share reported in 2002's fourth quarter. In an effort to improve future operating margin performance, during 2003's fourth quarter the company took steps to reduce its cost base by approximately $8.0 million annually. As part of this process, the company reduced its workforce and implemented broad-based salary reductions. As a result, the company took a restructuring charge of approximately $1.3 million in the fourth quarter of 2003 primarily related to employee severance costs. On Jan. 28, Sanchez announced it signed a merger agreement with Fidelity National Financial Inc. (NYSE:FNF), a Fortune 500 provider of products and outsourced services and solutions to financial institutions and the real estate industry. Pursuant to the agreement, Fidelity Information Services Inc., which is a subsidiary of FNF, has agreed to acquire all of Sanchez's common stock for an amount equal to $6.50 per share. The consummation of the merger is subject tocustomary conditions, including Sanchez shareholder approval and certain regulatory approvals. The consideration will be paid in cash and FNF stock. Divisional Reporting Based on the company's divisional unit reporting structure, implemented in 2003's first quarter, the company's Banking Solutions Division reported fourth quarter 2003 revenue of $8.6 million and annual revenues of $36.5 million for 2003. Revenues from this division are generated from software licenses, enhancement fees and maintenance fees. The Wealth Management Division reported fourth quarter 2003 revenue of $2.4 million and annual revenues of $10.4 million for 2003. Revenues from this division are generated from software licenses, enhancement fees and maintenance fees derived from wealth management products. The Outsourcing Division reported fourth quarter 2003 revenue of $6.3 million, and annual revenues of $23.7 million for 2003. Revenues from this division are generated from fees for processing and services providedto clients using the outsourcing platform. The Global Services Division reported fourth quarter 2003 revenue of $5.8 million, and annual revenues of $21.2 million for 2003. Revenues from this division are generated from fees related to banking implementations, product customization projects, training, project management and consulting. 2003 Highlights For 2003, the company had many additional highlights, which included: -- The Charles Schwab Corporation launched its direct bank, Charles Schwab Bank, N.A., on a Sanchez outsourcing solution incorporating the full suite of Sanchez bank technology and operations infrastructure solutions. -- ING Direct U.K. became the sixth ING Direct bank to launch its direct savings business on the Sanchez Profile(TM) real-time, transaction processing solution. -- Sanchez became the first financial services software vendor in the world to have a core bank processing system run in a production environment on the Linux operating system when First Mortgage KFT of Hungary went live with the solution. -- Sumitomo Mitsui Banking Corporation (SMBC), one of the world's largest banking institutions, migrated its Paris corporate banking operations to a Sanchez solution. The migration of the Paris operations marked SMBC's fifth Sanchez Profile implementation. -- Warsaw, Poland-based Bank DZ, formerly Bank Amerykanski w Polsce S.A., implemented a Sanchez banking solution. -- RBC Financial Group, Canada's largest financial institution and a leading North American diversified financial services company, went live with Sanchez Funds, a comprehensive mutual fund order management system. Approximately 1,600 RBC financial planners and relationship advisors at 1,300 domestic branches now provide third-party mutual fund order management services using Sanchez Funds. Conference Call Information The company has scheduled a conference call today at 5 p.m. Eastern Standard Time (EST) to discuss the results and expectations for future performance. For listen-only access to the conference call, please call the toll-free conference number, 800-223-9488, by 4:50 p.m. EST, and reference the conference ID - "Sanchez." Alternatively, to listen to the call on the Web, go to the Sanchez Web site, http://www.sanchez.com/, and click on the link provided on the home page. Please do this at least 15 minutes prior to the call (4:45 p.m. EST) to register, download and install anynecessary audio software. For those who cannot listen to the Web broadcast, it will be posted on the company's Web site two hours after the call is completed and will remain on the site through March 1. A telephone replay also will be available two hours after the conference call through Feb. 24, and can be accessed by calling toll-free: 800-839-4198. In addition, a transcript will be available 48 hours later and will be posted on the company's Web site. About Sanchez Sanchez Computer AssociatesInc. (NASDAQ:SCAI), headquartered in Malvern, Pa., is a global leader in developing software and services that provide banking, securities, customer integration, wealth management and outsourcing solutions to nearly 400 financial institutions in 22 countries. For more information, visit http://www.sanchez.com/. This press release does not constitute an offer of any securities for sale or a solicitation of a proxy. In connection with the proposed transaction, FNF and Sanchez will file a registration statement, prospectus and proxy statement with the Securities and Exchange Commission. INVESTORS AND SHAREHOLDERS ARE ADVISED TO READ THESE AND ALL RELATED DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a free copy of the registration statement, prospectus, proxy statement, and related documents when they become available from the Securities and Exchange Commission's web site at http://www.sec.gov/. Free copies of these documents may also be obtained at Sanchez's website at http://www.sanchez.com/ and at FNF's website at http://www.fnf.com/. In addition to the registration statement, prospectus and proxy statement, Sanchez and FNF file annual, quarterly and current reports, proxy statements and information with the SEC. You may read and copy any reports, statements or other information filed by Sanchez or FNF at the SEC public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549 or at any of the commission's other public reference rooms in New York, N.Y. and Chicago, Ill. Please call the SEC at 800-SEC-0330 for further information on the public reference rooms. Sanchez and FNF filings with the SEC are also available to the public from commercial document-retrieval services and at the website maintained by the commission at http://www.sec.gov/. This news release contains forward-looking statements about Sanchez and may include, without limitation, statements concerning Sanchez's expectations of the impact of 2003's fourth quarter restructuring charge on the company's performance and the expected benefit of the cost-reduction plans. When used in this news release, the words "anticipate," "estimate," "expect," "intend," "plan," "project" and variations of these words and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in any such forward-looking statementdue to a variety of factors including those identified in the company's Form 10-K for 2002, which was filed with the Securities and Exchange Commission (SEC) on March 31, 2003, and other Sanchez filings with the SEC. The company assumes no obligation to update any forward-looking statements. Sanchez and Sanchez Profile are trademarks of Sanchez Computer Associates Inc. All other company and product names may be trademarks of their respective organizations. SANCHEZ COMPUTER ASSOCIATES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (all amounts in thousands) December 31,2003 December 31,2002 Cash and cash equivalents $28,539 $31,572 Accounts receivable, net 12,715 14,138 Contracts in process 3,244 4,851 Deferred product and service expense 10,252 8,343 Other current assets 2,360 7,092 Total current assets 57,110 65,996 Property and equipment, net 4,193 5,528 Deferred product and service expense 3,005 11,496 Goodwill and intangibles, net 25,953 32,350 Other non-current assets 11,477 5,727 Total assets $101,738 $121,097 Deferred product and service revenue $23,745 $22,804 Other current liabilities 11,369 13,388 Total current liabilities 35,114 36,192 Deferred product and service revenue 3,878 18,150 Other non-current liabilities 521 -- Minority interest 233 209 Shareholders' equity 61,992 66,546 Total liabilities and shareholders' equity $101,738 $121,097 Note: Certain amounts have been reclassified to conform to the current presentation. SANCHEZ COMPUTER ASSOCIATES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (all amounts in thousands, except for per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2003 2002 2003 2002 Revenues Products $4,300 $8,230 $22,673 $18,728 Services 8,229 7,105 28,789 32,207 Processing 4,589 4,596 18,426 18,431 Software maintenance fees and other 5,938 5,203 21,933 18,207 Customer reimbursements 1,144 1,011 4,583 5,445 Total revenues 24,200 26,145 96,404 93,018 Operating expenses Product development 5,443 4,178 21,563 15,555 Product support 1,548 1,732 6,451 6,149 Services 6,257 5,228 22,935 19,923 Processing 4,142 3,992 16,241 16,294 Sales and marketing 3,007 3,761 12,955 13,056 General, administrative and other 2,946 2,809 11,786 11,043 Customer reimbursements 1,144 1,011 4,583 5,445 Impairment charge -- -- 9,500 -- Restructuring charge 1,328 -- 1,644 752 Total operating expenses 25,815 22,711 107,658 88,217 Earnings (loss) from operations (1,615) 3,434 (11,254) 4,801 Interest income, net 61 85 280 975 Gain (loss) on investment -- (393) 156 (393) Foreign exchange 40 26 (154) 160 Earnings (loss) before income taxes (1,514) 3,152 (10,972) 5,543 Income tax provision (benefit) (759) 1,040 (736) 1,669 Net earnings (loss) $(755) $2,112 $(10,236) $3,874 Basic earnings (loss) per average common share $(0.03) $0.08 $(0.38) $0.15 Diluted earnings (loss) per average common share $(0.03) $0.08 $(0.38) $0.15 Weighted-average common shares outstanding 26,933 26,677 26,843 26,312 Weighted-average common and dilutive shares outstanding 26,933 26,984 26,843 26,654 Note: Certain amounts have been reclassified to conform to the current presentation. Contacts: Todd Pittman Greg Ryan Chief Financial Officer Investor Relations Officer Tel: 1-610-578-4100 Tel: 1-610-578-4252 Fax: 1-610-296-7371 Fax: 1-610-296-7371 DATASOURCE: Sanchez Computer Associates, Inc. CONTACT: Todd Pittman, Chief Financial Officer, +1-610-578-4100, +1-610-296-7371, ; or Greg Ryan, Investor Relations Officer, +1-610-578-4252, Fax: +1-610-296-7371, , both of Sanchez Computer Associates Web site: http://www.fnf.com/ Web site: http://www.sanchez.com/

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