The Reynolds and Reynolds Company reported net income of $28.2 million or 40 cents per share for the third fiscal quarter ended June 30, 2003.

As previously announced, EPS included a 3 cent negative adjustment in the third quarter required by a recently enacted Ohio state income tax change. This tax increase was retroactive to the beginning of the company's fiscal year which started October 1, 2002. Revenues of $250.4 million were essentially flat compared to a year ago.

Lower-than-expected spending on information technology continued to affect the company's revenue growth. Software Solutions, the company's largest segment, grew revenues 8 percent over last year. The smaller Transformation Solutions, Documents and Financial Services segments declined 23 percent, 3 percent and 17 percent respectively versus last year. Financial Services revenues declined primarily due to lower interest rates.

"Our strategy is on target, and our opportunities for growth are significant, as automotive retailers are healthy and eager to invest in solutions that deliver business value," Lloyd "Buzz" Waterhouse, CEO, chairman and president, said. "Our Customer Relationship Management (CRM) solutions are really hitting their stride. And, through the summer and fall, we will launch a number of new solutions designed to hit the sweet spot for our customers."

"The Reynolds portfolio of solutions is without question, the strongest in the industry," Waterhouse said. "We are building momentum. We have been particularly successful at helping automotive retailers using multiple standalone CRM solutions to achieve lower costs and better business results by consolidating onto our fully integrated solutions."

"Profitability remained solid in the quarter," Dale Medford, executive vice president and chief financial officer, said. "We continue to effectively balance investments as we deliver exciting new solutions to our customers. We have put strong programs in place to accelerate our growth in the months ahead."

During the quarter, the company repurchased 1 million shares for $28 million, at an average price of $28.53. Year to date, the company has repurchased 3.3 million shares at an average price of $26.31. Approximately 1.6 million shares remain authorized for repurchase.

Reynolds and Reynolds is a provider of integrated solutions that help automotive retailers manage change and improve their profitability. With 75 years of experience serving automotive retailing, Reynolds says it enables car companies and retailers to work together to build the lifetime value of their customers. 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 and virtually all car companies doing business in North America. Its CRM consulting practices span approximately 15 countries around the world.