basis, of $619,070, down from $639,410 in the 1996 year.

Chairman Donald P. Lines was releasing the results of the company for the 14-month period to December 31,, during which consolidated earnings were $721.958 or $2.40 per share.

Mr. Lines indicated positive expectations for the current year, but cautioned shareholders that the industry was very competitive, requiring investments to ensure market leadership.

He said the company's balance sheet showed a very strong ratio of liquid assets of $3,676,078 compared to current liabilities of $1,715,225 and capital of over $2 million.

Mr. Lines said the end of the financial year was changed to December 31 to facilitate reporting to IBM with respect to the agency business, where there has been significant growth in the software support services area.

Computer systems manager Barry Wilson, who has overall responsibility for the management of the agency business, was elected a director to fill the vacancy arising as a result of the death of David Wilkinson.

The company's agm is scheduled for May 7 at company offices on Victoria Street.