Computer Programs and Systems, Inc. Announces Second Quarter 2008 Results

COMPUTER PROGRAMS AND SYSTEMS, INC. Unaudited Condensed Statements of Operations (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, ------------------- ----------------- 2008 2007 2008 2007 --------- --------- -------- -------- Sales revenues: System sales $ 8,458 $ 10,266 $ 19,114 $ 18,582 Support and maintenance 13,133 12,368 26,219 24,908 Business management services 6,161 5,329 11,936 10,419 --------- --------- -------- -------- Total sales revenues 27,752 27,963 57,269 53,909 Cost of sales: System sales 7,215 7,766 15,117 14,945 Support and maintenance 4,772 5,006 9,570 10,063 Business management services 3,640 3,295 7,225 6,353 --------- --------- -------- -------- Total cost of sales 15,627 16,067 31,912 31,361 --------- --------- -------- -------- Gross profit 12,125 11,896 25,357 22,548 Operating expenses: Sales and marketing 2,129 2,306 4,389 4,382 General and administrative 5,287 4,765 10,761 9,657 --------- --------- -------- -------- Total operating expenses 7,416 7,071 15,150 14,039 --------- --------- -------- -------- Operating income 4,709 4,825 10,207 8,509 Interest income, net 230 272 495 549 --------- --------- -------- -------- Income before taxes 4,939 5,097 10,702 9,058 Provision for income taxes 1,948 1,795 4,205 3,197 --------- --------- -------- -------- Net income $ 2,991 $ 3,302 $ 6,497 $ 5,861 ========= ========= ======== ======== Basic earnings per share $ 0.28 $ 0.31 $ 0.60 $ 0.55 ========= ========= ======== ======== Diluted earnings per share $ 0.28 $ 0.31 $ 0.60 $ 0.55 ========= ========= ======== ======== Weighted average shares outstanding: Basic 10,753 10,683 10,749 10,673 Diluted 10,767 10,732 10,767 10,725

COMPUTER PROGRAMS AND SYSTEMS, INC. Condensed Balance Sheets (in thousands) June 30, Dec. 31, 2008 2007 ----------- -------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 12,851 $11,806 Investments 11,595 11,352 Accounts receivable, net of allowance for doubtful accounts of $797 and $949, respectively 13,179 14,334 Financing receivables, current portion 1,879 1,735 Inventory 1,624 1,450 Deferred tax assets 1,429 1,394 Prepaid expenses 419 506 ----------- -------- Total current assets 42,976 42,577 Financing receivables, long-term 1,280 2,322 Property and equipment 12,708 12,130 Accumulated depreciation (7,586) (6,621) ----------- -------- Total assets $ 49,378 $50,408 =========== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,625 $ 1,717 Deferred revenue 3,971 3,581 Accrued vacation 2,264 2,112 Income taxes payable 76 542 Other accrued liabilities 3,363 3,507 ----------- -------- Total current liabilities 11,299 11,459 Deferred tax liabilities 367 571 Stockholders' equity: Common stock, par value $0.001 per share, 30,000 shares authorized, 10,833 and 10,807 shares issued and outstanding 11 11 Additional paid-in capital 25,298 24,658 Accumulated other comprehensive income 37 45 Retained earnings 12,366 13,664 ----------- -------- Total stockholders' equity 37,712 38,378 ----------- -------- Total liabilities and stockholders' equity $ 49,378 $50,408 =========== ========

COMPUTER PROGRAMS AND SYSTEMS, INC. Unaudited Other Supplemental Information (In thousands) The following table summarizes free cash flow for the Company: -------------------------------------------------------------
--------- Three Months Six Months Ended Ended June 30, June 30, 2008 2008 ------------ ---------- Net cash provided by operating activities $ 5,212 $ 9,514 Purchases of property and equipment (266) (577) ------------ ---------- Free cash flow $ 4,946 $ 8,937 ============ ==========