July 18, 2001

 

Headlines---

 

  Tyco Reports 24% Increase 3^rd Quarter

   IBM Reports 3% Decrease,But Profit $103 Million

    Greenspan Describes Economy as “ Still Standing.”

     Capital Stream Details on TIBCO

       Advisa, McCue Systems Offer Like-Kind Exchange Application

         Heller Financial, Inc. Declares Dividends for Class A and B Common Stock

eFinancial Projects Are Destined to Fail

           Without Concerted Project and Resource Management Methodologies

 

Ethics Dialog—Anonymous   ---- “Blah-Blah-Blah?”

 

   plus

 

The Financial Resource Conference  August 28-30, 2001 Winners ! ! !

 

 

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Tyco International Reports 24 Percent Increase in Third Quarter Earnings Per Share; Per Share Earnings Rise to 72 Cents from 58 Cents; Free Cash Flow Reaches $1.5 Billion

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Tyco International Ltd. (NYSE: TYC) (BSX: TYC) (LSE: TYI), a diversified manufacturing
and service company, reported today that diluted earnings per share for its third quarter ended
June 30, 2001 were 72 cents, a 24 percent increase over earnings of 58 cents per share for the
same quarter last year. Net income before extraordinary items rose to $1.3 billion, an increase
of 32 percent compared to $992.1 million last year. Revenues for the quarter rose 25 percent to
$9.3 billion compared with last year's $7.4 billion.

 

These results are before non-recurring items. After giving effect to such items, diluted earnings
per share before extraordinary items for the third quarter of fiscal 2001 were 67 cents, or $1.2

billion, compared to 58 cents, or $997.3 million, in the third quarter of fiscal 2000.

 

Income before non-recurring items, extraordinary items and cumulative effect of accounting
change for the nine months ended June 30, 2001 rose to $3.5 billion, or $1.94 per diluted share,
a 32 percent increase over last year's first nine months' earnings of $2.6 billion, or $1.54 per
diluted share. Revenues for the first nine months of fiscal 2001 increased to $26.2 billion, 24
percent higher than last year's first nine months' revenues of $21.1 billion. After giving effect
to non-recurring items, diluted earnings per share before extraordinary items and cumulative
effect of accounting change were $1.89, or $3.4 billion, for the first nine months of fiscal 2001
compared to $1.52, or $2.6 billion, in fiscal 2000.

 

"Tyco's strong results in the quarter exemplify our longstanding strategy of building our base of
recurring and service revenues and non-cyclical businesses. Expansion of our recurring revenue
base in the Fire and Security segment and growth in our Healthcare business more than offset
weakness in Electronics," said L. Dennis Kozlowski, Chairman and Chief Executive Officer of Tyco.

"The strength and diversity of our business mix makes us comfortable with the outlook for Tyco
during the remainder of fiscal 2001 as well as fiscal 2002," Kozlowski continued. "Assuming current business trends, we expect to achieve our previously stated guidance of $2.77-2.78 earnings per
share and, while it's early to make specific predictions, we believe that $3.45 per share is a
reasonable estimate for fiscal 2002."

 

"On the acquisition front, we remain very much on plan. The acquisition of CIT was completed on
June 1, 2001, and its integration is proceeding smoothly. Cost reductions have been implemented,
less desirable assets are being divested, and the opportunities for financing the needs of Tyco's
customer base are being actively pursued. We are also on plan with integration and cost
reductions at SecurityLink and we look forward to closing the C.R. Bard acquisition during the
fourth calendar quarter," Kozlowski concluded.

 

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CapitalStream Selects TIBCO Software To Provide Enterprise Application Integration Across Its Networked Commercial Finance Platform

 

CapitalStream improves its robust commercial finance platform; additional technology will enable rapid, scalable integration for third-party and customers’ legacy systems

 

SEATTLE, WA.  –- CapitalStream (www.CapitalStream.com), a Seattle-based provider of commercial finance automation technology, today announced it will utilize the TIBCO Software Inc. (Nasdaq: TIBX) Enterprise Application Integration (EAI) suite to integrate, connect and extend its network and offerings for banks, financial institutions and manufacturers.  The choice for CapitalStream is significant in that it will make it possible for its offering to integrate more quickly and easily with customer legacy systems and increase customer usage flexibility – all while accelerating the commercial finance transaction workflow process. 

 

CapitalStream will use TIBCO’s EAI solution to enhance its FlowChart Editor process, which can substantially reduce a lender’s risk, while increasing its profitability.  Currently, CapitalStream’s FlowChart Editor is able to automate the credit decision making process as well as assess risk, based on business rules set in advance by the customer.  Once complete, the system initiates an additional set of actions including automatic assignment, forwarding of credit applications to a funding source for approval, and completes the credit approval cycle with the booking of the transaction. The customer has the ability to change or modify their business rules, as their requirements evolve, at anytime from the convenience of their desktop, thus saving time and money. 

 

By adding TIBCO’s technology – also known as The Information Bus^TMor the “TIB®”– once the origination process has been engaged, CapitalStream’s FlowChart Editor will be able to tie together third-party and legacy systems, and concurrently perform multiple tasks, such as credit screening, fraud check, credit rating, proper equipment usage, deal size and other elements integral to the decision making process.  

 

“We at CapitalStream are pleased to have TIBCO as our EAI vendor,” said Jeffrey Dirks, executive vice president and e-Commerce Operating Officer, CapitalStream.  “By incorporating their integration technology into our solution we are creating an offering that gives customers ease of integration with the ability to link together disparate systems. This is the key to streamlining the commercial finance process.”

 

CapitalStream is planning on full implementation of the Integration Manager portion of the EAI solution by 4th quarter of 2001.  In 2002 all new CapitalStream customers will experience the faster, more efficient CapitalStream - FinanceCenter offering.  Current customers will also be able to adopt the enhanced CapitalStream solution at that time.

 

“CapitalStream offers a key application for banks and companies looking to provide commercial financing,” said Fred Meyer, chief marketing officer for TIBCO Software. “By basing their platform on TIBCO’s technology, CapitalStream will have the benefits of industry-leading integration, B2B and portal technologies that will enable them to quickly connect to customers and the ability to increase their competitiveness in the marketplace.”

 

About CapitalStream

Seattle-based CapitalStream (http://www.capitalstream.com) automates and streamlines commercial finance processes for banks, finance companies, and manufacturers.  CapitalStream – FinanceCenterÔ reduces processing time, lowers costs, and enables

companies to cost effectively take advantage of new business opportunities by automating manual processes for leases, loans, lines of credit, and credit cards. CapitalStream, an established industry leader for more than five years with deep knowledge about the inner workings of the financing world, has helped hundreds of financial organizations increase their competitiveness, customer service and profitability.

 

About TIBCO Software Inc.
TIBCO Software Inc. (Nasdaq: TIBX) is a leading provider of total business integration solutions delivering infrastructure software that enables businesses to seamlessly integrate business systems in real-time.  TIBCO’s products enable the real-time distribution of information through patented technology called The Information Bus^TM or TIB®.  TIBCO technology was first used to digitize Wall Street and has since been adopted in diverse industries including financial services, telecommunications, electronic commerce, transportation, logistics, manufacturing and energy.  TIBCO’s global customer base includes more than 1,200 customers such as Cisco Systems, Yahoo!, Ariba, NEC, Enron, Sun Microsystems, GE Capital, The Limited, Delta Air Lines, Philips, AT&T and Pirelli.  Headquartered in Palo Alto, California, TIBCO can be reached at 650-846-1000 or on the web at www.tibco.com.

 

TIBCO, TIBCO Software, TIBCO ActiveEnterprise, TIB/NetworkConnector, TIB/BusinessConnect, TIB/InConcert, TIB/MessageBroker, TIB/Rendezvous, TIB/Hawk, The Information Bus and TIB are trademarks or registered trademarks of TIBCO Software Inc.  All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.

 

Legal Notice Regarding Forward-Looking Statements: This release contains forward-looking statements regarding TIBCO's business, customers, markets served or other factors including the ability of products to meet customers’ expectations, needs, or perform as described that may affect future earnings or financial results. Our actual results could differ in such forward-looking statements. Reasons for why actual results could differ materially include if the products are unable to successfully meet customers’ expectations, needs, or perform as described. Additional information concerning factors that could cause our actual results to differ materially from those contained in the forward-looking statements can be found in TIBCO Software's filings with the Securities and Exchange Commission ("SEC"), including but not limited to its most recent reports on Forms 10-Q and 10-K filed with the SEC on April 12, 2001 and February 27, 2001, respectively, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements including limited independent operating history, history of losses, unpredictability of future revenue, dependence on a limited number of customers, relationship with Reuters Group PLC, rapid technological and market changes, risks associated with infrastructure software and volatility of stock price. Copies of filings made with the SEC are available through the SEC's electronic data gather analysis and retrieval system (EDGAR) at www.sec.gov. TIBCO assumes no obligation to update the forward-looking statements included in this document.

 

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SecureLease VISION to Provide Credit Bureau Reports with MicroBilt’s SDK

 

SecureLease, a leading provider of Internet-based services to the leasing industry, has integrated MicroBilt’s Software Development Kit (SDK) into VISION—its new Application Service Provider product. Subscribers now can obtain reliable credit information instantly to evaluate lease applications.

 

SecureLease VISION offers companies building blocks to rapidly deploy B2B finance solutions that fit their unique needs. VISION uses the Application Service Provider (ASP) model to deliver an Internet presence with the subscriber's distinctive marketing personality.  Capabilities range from email and web site hosting, to full e-commerce solutions including credit scoring and electronic document delivery.  Subscribers choose the features they need for a cost effective solution tailored to their requirements.

 

With the addition of the powerful MicroBilt SDK, subscribers can now elect to define acceptance criteria and evaluate credit bureau data from the three major consumer bureaus and two commercial bureaus.  Companies have complete flexibility to combine the best of automated processing and the human touch to serve their customers.

 

SecureLease was seeking a faster, more secure, and more economical alternative for accessing credit bureau products. According to Steve Lundergan, SecureLease President, “We chose MicroBilt because they were able to provide a superior product, they had great experience in the industry, and they were very responsive.”

 

The MicroBilt SDK puts companies on the leading edge of automating credit decisions. Lease applications receive fast replies.  Routine paper shuffling is eliminated so leasing companies can focus on building their business and serving their customers.  “MicroBilt has relieved us of a significant burden,” said Kirk Hall, SecureLease CTO. “We were able to integrate the MicroBilt SDK into VISION in under two weeks, saving significant development cost, and we no longer have to maintain direct connections to the credit bureaus.”

 

MicroBilt’s SDK is geared to companies who extend credit or have a need to run credit reports for their businesses.  The MicroBilt interface provides a way for developers to access and integrate multiple credit bureau data and reporting into their application.

 

“We are pleased that SecureLease chose to replace their existing credit access capability with the MicroBilt SDK,” said Ken Hill, President of MicroBilt Corporation.  “They recognized the value of our product and our experience with the credit bureaus.”

 

VISION is SecureLease’s second release of its ASP-based product, initially offered in September of 2000.  Developed using the Microsoft .NET framework, VISION showcases the versatility of new Internet development tools to provide Brokers, Lessors, Funders, Banks and Financial Institutions increased efficiency and productivity with automatic processing options, flexible integration with external systems, secure and reliable access to confidential information and rapid deployment while accommodating clients' specific needs.

 

About SecureLease:

 

SecureLease.net was originally created to serve the equipment leasing industry.  The goal of the companyOur goal is to providesmall to mid-sized leasing companiessubscribers access to Ee-commerce solutions at an affordable price.  The company’s Our philosophy is that technology should automate routine processes and provide real-time information, but can never replace industry experience and equipment knowledge.  TheOur software uses an Application Service Provider (ASP) model so clients can quickly establish a unique Internet identity.   SecureLease.net is responsible for maintaining the hardware and software, while the subscriber maintains complete control of access to confidential information.

 

SecureLease wasE established in 1999 to build on the success of software developed with the sponsorship of for Richlund & Associates, a leasing company headquartered in St. Charles, MO.. The leadership team offers leasing and finance industry experience, technology expertise and a commitment to listen to our customers.  

 

About MicroBilt:

MicroBilt, a division of Bristol, is a nationwide leader in credit bureau data access and retrieval, providing credit solutions to the Financial (banking, mortgages, home equity, credit union, collections), Rental or Leasing, Health Care, Insurance, Law Enforcement, Educational (Universities, Colleges and institutions of higher learning) and Utilities (gas, electric, cellular, cable, residential phones) industries. MicroBilt provides interfaces with the three consumer bureaus, Equifax (NYSE: EFX), Experian (London Stock Exchange: GUS) and Trans Union and the two commercial bureaus, Dun & Bradstreet and Experian Business. Bureau data is available via dial-up software, Internet website access (www.creditcommander.com), or through an integrated custom interface utilizing the Software Developers Kit. The company also enables web sites to enhance their content offerings by delivering a CreditCommander.com co-branded site to their established online communities. MicroBilt services over 30,000 customers throughout the United States and Canada. MicroBilt (www.microbilt.com), formerly a First Data Corporation (NYSE: FDC) subsidiary, is headquartered in Kennesaw, Georgia with offices in Princeton, New Jersey, South Carolina, Arizona and California.

 

Greenspan Says More Rate Cuts May Be Needed to Spur Economy

 

   Describes the Economy  as “ Still Standing.”

 

Wall Street Journal

 

Federal Reserve Chairman Alan Greenspan cautioned that the economy still hasn't emerged from its yearlong slump and could get worse.

 

"The period of sub-par economic performance ... is not yet over, and we are not free of the risk that economic weakness will be greater than currently anticipated and require further policy response," Greenspan told the House Financial Services Committee.

Greenspan said Fed policy makers have lowered their forecast for economic growth this year. The range of economic growth, as measured by the gross domestic product, in 2001 is now forecast at between 1.5% and 2%, rather than 2% to 2.75%. The Fed has predicted the economy would rebound to a stronger rate of growth in the range of 3% to 3.5% in 2002.

 

In an effort to stave off recession, the central bank has slashed interest rates six times this year, totaling 2.75 percentage points, the most aggressive credit-easing campaign in nearly two decades.

 

Economists viewed Greenspan's remarks as sending a strong signal that another interest rate cut could come as soon as the Fed's next meeting on Aug. 21.

"I think that he was a bit clearer today in expressing concern about the potential for continued weakness for the economy than he typically is and that he is holding up a flag. He is telling everybody he is absolutely prepared to do all that is necessary to make sure things don't get any worse," said economist Joel Naroff of Naroff Economic Advisors.

 

Greenspan expressed hope that the Fed's rate reductions - along with falling energy costs and soon-to-be mailed tax-rebate checks - will bolster economic growth in the coming months.

 

"By aggressively easing the stance of monetary policy, the Federal Reserve has moved to support demand, and, we trust, help lay the groundwork for the economy to achieve maximum sustainable growth," Greenspan said.

 

One of the reasons the Fed has been able to cut interest rates so much, Greenspan said, is because inflation is well contained. That should continue, given that energy prices are starting to fall.

 

The Labor Department said that the consumer-price index rose a seasonally adjusted 0.2% in June after a 0.4% increase in May. The so-called core index, which excludes volatile food and energy items, increased 0.3% after a 0.1% increase in May. The core index rose 2.7% in the 12 months through June, up from a 2.5% annual rate in May.

 

Overall, the CPI rose 3.2% in June from a year earlier.

 

Energy prices fell 0.9% after surging 3.1% in May. Natural-gas prices fell 5.6%, their biggest drop ever, but electricity prices jumped a record 3.8%. Gasoline prices fell 2.6%.

Housing prices, which make up 40% of the index, grew 0.4% in June after increasing 0.4% in May.

 

Greenspan said that, while inflation remains in check, "Uncertainties surrounding the current economic situation are considerable," he said.

 

Until there is more evidence that businesses have successfully completed getting their excess stocks in line with sales and companies ramp up investment in computers and other equipment, "The risks would seem to remain mostly tilted toward weakness in the economy," Greenspan said.

 

Much of the economic slowdown comes from businesses rapidly and sharply cutting back on production in the face of sagging demand. Companies have laid off workers, trimmed hours and deeply discounted merchandise to work off excess inventories.

 

Economic upheaval in other countries, coupled with rising energy prices last year into this year, intensified the slowdown and drained businesses' and consumers' purchasing power, Greenspan said.

 

Greenspan did not predict when businesses would complete the paring of inventories. "At some point, inventory liquidation will come to an end, and its termination will spur production and incomes," he said.

 

Economists say once companies work off excess inventories, they will be in a position to rev up production, which would bode well for a rebound in economic growth.

 

Consumers, whose spending accounts for two-thirds of all economic activity, have been a main force keeping the economy afloat. Household disposable income, Greenspan said, is now being bolstered by President Bush's new tax cuts.

Yet, there are downside risks to consumer spending in the next few quarters, he said. The sagging stock market has reduced household wealth and is likely to restrain consumer spending in the future. A weaker labor market also could damp spending.

 

Even against these risks, Greenspan said, "It is notable how well the U.S. economy has withstood the many negative forces weighing on it."

 

Separately, the Commerce Department said housing starts rose 3% to a seasonally adjusted 1.658 million annual rate in June, following a revised 1% decline in May to a 1.610 million pace. The May rate initially had been estimated as a 0.4% drop to 1.622 million annual rate.

The report surprised economists, who had expected a decline to a 1.60 million rate. The data show the housing sector continues to be an area of strength in an otherwise struggling U.S. economy.

 

The report signaled some possible weakness down the line, however.

 

June building permits, an indication of future activity, fell 3.3% to a seasonally-adjusted 1.568 million annual rate, the Commerce Department said. The rate was short of the 1.61 million units expected by economists.

 

The National Association of Home Builders reported that its index for new, single-family homes dipped to 56 in July from 58 in June, still a relatively high level.

Single-family home construction, which accounts for more than two-thirds of all residential construction, increased 1.4%.

 

Housing starts were up 6.3% year-on-year.

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BM Credit Reports 2001 Second-quarter Financial Results

 

 

ARMONK, N.Y.--( --IBM Credit Corporation today reported second-quarter 2001 net earnings of $103.47 million, a 3 percent decrease, compared with $106.15 million for the second quarter of 2000. The annualized return on average equity was 22.4 percent, compared with 17.7 percent in 2000.

 

New customer financing originations(a) for acquisition of information technology products and services increased 5 percent to $1.74 billion in the second quarter of 2001, compared with $1.66 billion for the same period in 2000. New commercial financing originations -- providing working capital for inventory, accounts receivable and