great qtr
BTG Reports 1st Quarter Financial Results
Services Revenue, Operating Income, Net Income, and EPS Rise Sharply
FAIRFAX, Va.--(BUSINESS WIRE)--July 24, 2000-- BTG, Inc. (Nasdaq: BTGI - news), an information systems and technical services company, today announced unaudited financial results for its fiscal year 2001 first quarter, which ended June 30, 2000. Net income was $1.4 million, a 50% increase over the $965,000 in last year's first quarter. Diluted earnings per share for the quarter were $0.16, a 45% increase over the $0.11 reported in the same quarter of fiscal 2000. Revenue from the company's core information systems and technical services business increased 12%, from $50.6 million in last year's first quarter to $56.6 million for this quarter. Total revenue for the quarter was $59.9 million, down from the $66.3 million reported in the same period last year. This was due to a 79% decrease in product sales, resulting from the company's discontinuance of its remaining product reselling contracts in late 1999.
The company's operating profit margin increased 250 basis points, from 3.2% in the first quarter of fiscal 2000, to 5.7% in this year's first quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $4.0 million, or a fully diluted cash-flow-per-share of $0.44. This compares to EBITDA of $2.8 million, or a fully diluted cash-flow-per-share of $0.32 for the same period last year.
BTG President and CEO Edward H. Bersoff said the company's strategy of eliminating low margin product sales, while expanding its core information and technical services business, is clearly succeeding. ``BTG's performance has improved significantly over last year's first quarter with a dramatic increase in profitability, and we expect the strong financial results to continue.''
Bersoff said the company's realignment of business operations during the fourth quarter of fiscal year 2000 has strengthened the company at every level, while also reducing costs. ``The business development team has identified additional and larger contract opportunities, and they have done an exceptional job in aggressively pursuing new and expanded business. In the last few weeks, we have reported wins on several major contracts.''
BTG was the prime on one of three teams selected for the first phase of the Department of Defense Integrated Broadcast Service. The $2 million, six-month contract is the first step in the selection of one of the teams for the IBS development phase, a seven-year effort valued at more than $60 million. BTG team members include Boeing, Raytheon, Sterling Software (Computer Associates), GTE (BBN), INRI (Logicon), SM&A (now Emergent Information Technologies, Inc.), ITT, Averstar (now Titan), and Database Architects, Inc.
The company's Modeling and Simulation practice was awarded a $6.5 million addition to an existing contract with the National Security Agency to build a critical component of the next generation of joint military training simulations for the U.S. armed services.
BTG was selected for the General Services Administration's $20 billion Millennia Lite information technology services contract. The company was one of twelve teams selected to provide services in legacy systems migration and new enterprise systems development.
The company is a member of the Lockheed Martin team competing for the $1.5 billion Integrated Space Command and Control program for the U.S. Air Force. BTG's role on the team is to provide engineering and technical solutions for information operations.
Bersoff said other highlights include:
The completion of the purchase of the assets of SSDS, Inc., which brings BTG an expanded customer base and 150 skilled employees with credentials in information and network security, technology in schools, and Microsoft® and Remedy® applications.
Expansion of the company's Technology in Schools program, including the implementation of a $41 million technology services contract with the Okaloosa County School District in Florida. The company also hired Dr. L'Tanya Sloan, a nationally known educator and business executive, to lead the expansion of BTG's educational services.
The establishment of an agreement with SPYRUS®, a leading Internet security company, to jointly market a complete range of information and network security services to commercial and government customers. SPYRUS is a leading provider of PKI solutions that enable enterprises to mitigate risk and liability in internet commerce.
BTG's demonstration of its capabilities in information and network security at the first annual 2000 Global Internet Summit, an event that brought together business leaders and government officials from around the world to discuss the future of the Internet and electronic business. |
