TORONTO, - Digital pre-press company Creo Products said on Friday that acquisitions boosted growth in earnings and revenue in its fourth quarter. Creo said net income in the quarter ended September 30 rose to $16 million or 32 cents a share on an adjusted basis compared with $13.7 million or 28 cents a share in the prior quarter. The earnings per share matched the forecast of one analyst polled by First Call/Thomson Financial. Revenue in the period climbed to $173.3 million from $162.6 million in the third quarter. The company said product revenues in the quarter climbed 6.3 percent to $134.5 million, while service revenue rose 7.8 percent to $38.8 million from $36 million in the third quarter. No comparison figures were given for the fourth quarter of 1999. Creo said fourth-quarter results include integration costs of $2.7 million, plus goodwill and asset amortizationof $17.1 million. ``With the close of our fiscal year 2000, we believe Creo is positioned to take full advantage of operational efficiencies and capitalize on opportunities around the world,'' said Creo chief executive Amos Michelson. Creo's shares have been on a roller-coaster ride this year with investors worried that acquisitions would stall sales growth as customers delayed purchases. Its stock closed at C$45 on the Toronto Stock Exchange on Thursday, down from a year high of C$75. ($1 equals $1.55 Canadian) (In thousands of U.S. dollars) Creo Products Inc. (NASDAQ: CREO - news; TSE: CRE - news) reported $41.9 million in adjusted earnings(x) or $1.00 per share (fully diluted - Canadian GAAP; $0.97 diluted - U.S. GAAP) for the fiscal year ended September 30, 2000. Adjusted earnings for the fourth quarter 2000 was $16.0 million or $0.32 per share (fully diluted - Canadian and U.S. GAAP). (x)The adjusted earnings excludes the effect of goodwill and other intangible asset amortization, business integration costs and stock compensation charges. The adjusted earnings is not prepared in accordance with generally accepted accounting principles (GAAP) because it excludes these costs. "This year has been a remarkable year of growth for Creo," said Amos Michelson, CEO. "We have grown the company through acquisitions, expanded our product offering and extended our global reach. The steps we have taken over the past year have strengthened our position as a leader in the graphic arts industry. "The $508 million acquisition of the prepress division of Scitex Corporation Ltd. has created a tremendous opportunity for Creo and CreoScitex, our principal operating division. With our global organization of about 4,000 employees, we now have representation in all major worldwide markets. We have increased our product offering by hundreds, providing a comprehensive line of prepress equipment to our customers. "During the four-day-long Graph Expo tradeshow, the largest Graphic Arts tradeshow in North America, we had outstanding sales success with $30 million in orders and letters of intent for the sale of products and services. Through investments, acquisitions and new and enhanced product offerings, we now address new sectors of the graphic arts market, especially the market of publishing and creative professionals, internet solutions and the newspaper industry. Creo is the largest independent provider of software and hardware to the graphic arts market. In the past year, Creo has dramatically improved its ability to provide innovative end-to-end solutions. "With the close of our fiscal year 2000, we believe Creo is positioned to take full advantage of operational efficiencies and capitalize on opportunities around the world. Our global infrastructure, broad intellectual capital combined with our ability to provide innovative end-to-end solutions position Creo for long-term growth." The financial results for Creo include the prepress division of Scitex Corporation Ltd. acquired on April 4, 2000. The following comparison is based on the results for the three months ended September 30, 2000 (Q4) compared to the three months ended June 30, 2000 (Q3). The Statement of Operations this quarter includes business integration costs of $2.7 million, goodwill and other intangible asset amortization of $17.1 million.