Peter Duda faxed me the CMND 2nd Quarter press release, which the print media failed to report. Here it is:
Command Systems Announces Second Quarter Results
Farnmington, CT, July 28, 1998 - Command Systems, Inc. (NASDAQ: CMND) today announced financial results for its second quarter ended June 30, 1998. In line with the Company's recently announced estimates, revenue totaled $8,697,000, a 52% increase compared with revenue of $5,736,000 for the 1997 second quarter. Net income was $25,000 against a loss of $79,000 for the comparable 1997 period. Net income for the quarter ended June 30, 1998, benefited from $284,000 of interest income, a $153,000 income tax benefit and a $91,000 foreign exchange gain. Basic and diluted earnings per share for the quarter were breakeven versus a loss of $0.02 in the 1997 second quarter.
The Company's revenue for six months totaled $16,631,000, a 53% increase compared with $10,880,000 for the first six months of 1997. Net income was $479,000, compared to a loss of $350,000 for the same period in 1997. Net income for the six months benefited from $290,000 of net interest income, a $49,000 income tax benefit and a $91,000 foreign exchange gain. Basic and diluted earnings per share for the six months were $0.03 compared to a loss of $0.08 in the first six months of 1997. Earnings applicable to common stockholders were affected by preferred stock dividends and accretion.
The operating results for the second quarter were lower than anticipated primarily due to costs associated with the Company's increase in sales and project management personnel which were not accompanied by expected growth in project business. In addition, the Company experienced a lower than expected gross margin reflecting a less profitable mix of business and reduced margins from Year 2000 and other project business. Also, a non-recurring charge of approximately $100,000 was recorded to recognize certain use taxes and, as a result of certain shareholder litigation, the Company accrued costs of approximately $90,000.
The weighted average number of shares outstanding used in the calculation of basic and diluted earnings per share for both the quarter ended and six months ended June 30, 1998, increased over the comparable 1997 periods as a result of shares issued in conjunction with the Company's March 12, 1998 initial public offering.
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[Condensed Consolidated Statement of Income]
[Condensed Consolidated Balance Sheet] |
