The Reynolds and Reynolds Company reported July 24 net income of $30 million for the third fiscal quarter ended June 30, 2002. Earnings per share were 41 cents, a 24 percent increase over last year's 33 cents per share. Revenues of $251 million were slightly above last year, according to the company.

"We are pleased with our performance in the third quarter," Lloyd "Buzz" Waterhouse, chief executive officer, chairman and president, said. "We have seen steady, quarter-to-quarter improvement through the first three quarters. Automotive retailers see the need to upgrade their infrastructure to more effectively compete in an increasingly connected automotive retailing environment. Our new Reynolds Generations Series family of integrated solutions, utilizing advanced Internet-based technology, is building solid momentum in the market. Despite a tenuous economic environment, flat spending on information technology, and the change in the Microsoft CarPoint business model, we see significant opportunity ahead."

"General customer availability for our initial Reynolds Generations Series offering, comprised of integrated Web brand management and customer management modules, began in late April. We're encouraged by the strong rate of orders and customer enthusiasm. The component architecture inherent in the .NET framework for the Reynolds Generations Series has enabled us to quickly expand the capabilities of our Customer Management solution. We now support over 30 lead formats including Internet, walk-in and telephone. This is a significant competitive advantage for Reynolds in the customer relationship management (CRM) space over competitors which only support Internet leads."

Highlights From the Quarter

• According to Reynolds and Reynolds, orders were strong for the Reynolds Generations Series initial offering during the quarter, winning technology and services contracts with dozens of automotive retailers including Bill Pierre Group, Toyota of Orlando, Guy Schmidt Inc, Royal Gate Dodge, Wolfe Automotive Group, Planet Automotive and Stu Evans Lincoln Mercury.

• The company's board of directors elected Stephanie W. Bergeron as a director of the company. Bergeron is senior vice president, corporate financial operations and treasurer of The Goodyear Tire & Rubber Company. Prior to joining Goodyear in 1998, she served for 10 years in financial management positions with DaimlerChrysler AG and Chrysler Corporation, and 11 years in various accounting and financial management positions with General Motors Corporation.

• Reynolds introduced an expanded suite of professional, business and technical courses through a new Internet-based training solution to support a wide range of products and services including the Reynolds Generations Series.

• The Automotive Service Association, comprised of collision, mechanical and transmission repair facilities, named Reynolds and Reynolds the 2002 Benefit Partner of the year.

• The Strategic Account Management Association (SAMA), presented Reynolds with its Account Performance Award for Reynolds' support of Southeast Toyota Distributors LLC

• General Motors Corporation announced the creation of GM Dealer Supply Advantage, an advanced procurement Web site designed to drive cost savings for GM dealers supported by Covisint LLC and Reynolds and Reynolds. GM dealers will be able to visit Reynolds' ReySource online ordering solution directly from GM Dealer Supply Advantage for all their dealership forms needs.

• Networkcar Inc., announced it had been awarded a contract with Toyota Motor Sales, USA to deploy its CAReader telematics device on electric and hybrid vehicles participating in an innovative car sharing program in California. Reynolds is an equity partner and distributor of Networkcar's product.

• Reynolds announced an agreement with Nissan North America Inc. (NNA) to develop a retail network for the car company. Reynolds Automark Web Services will support the new NNA and Infiniti networks in multiple phases and will include enhancements to current Web pages to offer a more brand-consistent flow, and a fully brand-compliant Web site solution for all individual Nissan and Infiniti dealerships in the United States.

• Reynolds announced it was the only automotive services provider to deliver complete 5300 Project capabilities to Chrysler Group dealers, including the new Suggested Stock Order application. Available through DCX's Mopar Parts Division, the 5300 Project is a suite of software and process options designed to help dealers manage their parts inventory.

Reynolds and Reynolds (www.reyrey.com) says it is a provider of integrated solutions that help automotive retailers manage change and improve their profitability. The company's product, service and training solutions include a full range of retail and enterprise management systems, networking and support, e-business applications, Web services, learning and consulting services, customer relationship management (CRM) solutions, data management and integration, and leasing services. Reynolds serves more than 20,000 customers. They comprise 90 percent of the automotive retailers. Its CRM consulting practices span more than 20 countries around the world.