Computer Services Inc. reported audited consolidated earnings results for the fourth quarter and full fiscal year ended February 29, 2012. For the quarter, the company reported total revenues of $46.7 million against $41.96 million for the same period a year ago. Operating income was $10.231 million against $11.235 million for the same period a year ago. Income before income taxes was $10.234 million against $11.197 million for the same period a year ago. Net income was $7.225 million or $0.49 diluted per share against $6.774 million or $0.45 diluted per share for the same period a year ago. The increase in net income was due primarily to a lower effective tax rate in the fourth quarter of fiscal 2012 compared with fiscal 2011. The decrease in operating income was due primarily to losses at MSI combined with higher expenses associated with SGI. The growth in other revenues was primarily attributable to the HEIT acquisition and included higher sales from homeland security, fraud prevention services and eBusiness group revenues, partially offset by lower revenues from MSI due to the realignment of MSI resources during the fourth quarter that resulted in disruption of normal operations. For the full year, the company reported total revenues of $178.224 million against $163.776 million for the same period a year ago. Operating income was $40.385 million against 39.878 million for the same period a year ago. Income before income taxes was $40.325 million against $39.636 million for the same period a year ago. Net income was $25.506 million or $1.72 diluted per share against $24.106 million or $1.61 diluted per share for the same period a year ago. Cash flow from operations rose 19% to $45.8 million in fiscal 2012 compared with $38.5 million in fiscal 2011. The growth in revenues benefited from higher processing revenues, growth in other revenues and the contribution from the HEIT acquisition. The company expects operating income to be lower in the first half of fiscal 2013 because higher expenses will not be rewarded immediately with a ramp up in revenues. The company expect increased revenues to overtake increase in expenses by the third quarter of fiscal 2013 and, as a result, to report higher revenues and net income for the second half and full year.