BTSRC Tuesday May 15, 9:03 am Eastern Time
Press Release
SOURCE: Brightstar Information Technology Group, Inc.
BrightStar Reports 2 Cents Per Share Profit and Positive Cash Flow for First Quarter 2001
PLEASANTON, Calif., May 15 /PRNewswire/ -- BrightStar Information Technology Group, Inc. (Nasdaq: BTSRC - news), a leading provider of Application Team Outsourcing(TM) services for Global 2000, mid-market and public sector clients, today reported the financial results for the first quarter ended March 31, 2001.
(Photo: newscom.com )
Net Income for the first quarter ended March 31, 2001 was $244,000 or $0.02 per share on revenue of $6,693,000. This compares to a net loss of $(673,000) or $(0.08) per share on revenue of $19,605,000 for the first quarter of last year. EBITDA was $743,000 for the first quarter 2001, including $326,000 of non-recurring gain on the settlement of certain liabilities, resulting in pro forma cash flow from operations of $417,000 in the quarter.
``As expressed in our preliminary release, we are very happy with the operating results for the first quarter,'' said Joe Wagda, Chairman and CEO. ``We believe we have resized the Company based on our current business level, and now have the appropriate infrastructure and management in place with which to grow the Company. We recently began to rebuild our sales force with qualified and proven sales professionals from top-tier IT services firms. Due to this rebuilding and the normal sales cycle, we do not expect significant new bookings from the efforts of our new sales staff until later in the year. As a result, we are anticipating a net loss, but a breakeven-level EBITDA for the second quarter, with continued cash constraints. However, we expect an upturn in our revenue run-rate by the fourth quarter and continue to target an EBITDA of $1 million for the full year 2001. We also recently engaged an investment advisor to help us obtain the capital we need to support our business plan and to help increase the visibility of our company in the investment community.''
``We have had an encouraging increase in sales discussions and pipeline depth as a result of the activity of our new sales force,'' said Kevin Murphy, President and COO. ``In addition, we remain more convinced than ever that our strategy of focusing on Application Team Outsourcing is what CIOs are looking for in today's market. Application Team Outsourcing re-directs an IT department's budget from an in-house fixed cost to a flexible controllable cost by utilizing BrightStar's ability to expand and contract skilled resources. This market strategy should enable us to have longer and more predictable revenue relationships than in the past, and it provides a compelling value proposition for our customers, especially in the current cost-conscious environment.''
BrightStar will hold a teleconference to discuss the quarter's results on Wednesday, May 16, at 1:30 p.m. PDT (4:30 p.m. EDT). The teleconference is open to institutional as well as individual investors. The conference may be accessed at the following numbers:
US: 877-430-4853
International: 706-643-1741
A digital recording of the call will be available from two hours after the completion of the call until May 30. To access this recording, US/Canada participants should call 800-642-1687 and International residents 706-645-9291 and reference the conference ID 554440.
About BrightStar
BrightStar Information Technology Group, Inc. is a leading provider of Application Team Outsourcing services for Global 2000, mid-market and public sector clients, including application support and hosting, application development and integration of comprehensive enterprise and e-business solutions. BrightStar helps companies achieve a competitive advantage through the outsourcing or implementation of leading-edge enterprise resource planning, supply chain management, customer relationship management, corporate portal, e-commerce and custom-application solutions. BrightStar has offices in the San Francisco Bay Area, Dallas, Texas and Lafayette, Louisiana and can be reached via the company's Web site at www.brightstar.com.
Cautionary Note Regarding Forward-Looking Statements
This report includes forward-looking statements that reflect BrightStar's current expectations about its future results, performance, prospects and opportunities. BrightStar has tried to identify these forward-looking statements by using words such as ``believe,'' ``expect,'' ``anticipate,'' ``intend,'' ``estimate'' and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause BrightStar's actual results, performance, prospects or opportunities in 2001 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the impact of the changes in the Company's management, the development of the marketplace for application outsourcing and e-business solutions and other factors affecting market demand, BrightStar's ability to meet its immediate and future cash needs, changes in business plans and financial models that may result from any financing or strategic transactions entered into by BrightStar, BrightStar's ability to manage its growth and expansion into new geographic areas and service lines, foreign currency exchange rate fluctuations, difficulties in attracting and retaining highly skilled employees, BrightStar's ability to accurately estimate the cost, scope and duration of fixed-price client engagements, BrightStar's ability to collect amounts billed for client engagements, risks related to possible acquisitions, competitive factors and possible consequences of any stockholder lawsuits against BrightStar. For further information about these and other risks, uncertainties and factors, please review the disclosure included under the caption ``Risk Factors'' in BrightStar's Form 10K for the year 2000 and other information filed with the Securities and Exchange Commission. BrightStar undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or changed circumstances or for any other reason.
NOTE: BrightStar, the BrightStar logo, and Application Team Outsourcing are trademarks of BrightStar Information Technology Group, Inc. All other company and product names may be trademarks of their respective owners.
BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share information)
THREE MONTHS ENDED
MARCH 31, DECEMBER 31, MARCH 31,
2001 2000 2000
REVENUE $6,693 $9,988 $19,605
COST OF REVENUE 4,584 7,428 13,252
GROSS PROFIT 2,109 2,560 6,353
OPERATING EXPENSES:
Selling, general and
administrative expenses 1,367 4,496 6,433
Restructuring charge -- (288) --
Impairment of goodwill -- 17,686 --
Goodwill amortization 88 239 368
Depreciation and amortization 339 464 473
Total operating expenses 1,794 22,597 7,274
INCOME (LOSS) FROM OPERATIONS 315 (20,037) (921)
OTHER INCOME (EXPENSE) -- (15) (2)
INTEREST EXPENSE, NET (71) (100) (130)
INCOME (LOSS) BEFORE INCOME TAXES 244 (20,152) (1,053)
INCOME TAX PROVISION (CREDIT) -- -- (380)
INCOME (LOSS) FROM CONTINUING
OPERATIONS 244 (20,152) (673)
DISCONTINUED OPERATIONS:
Income (loss) from discontinued
operations, net of tax -- 273 --
NET INCOME (LOSS) $244 $(19,879) $(673)
NET INCOME (LOSS) PER SHARE:
BASIC AND DILUTED
Continuing operations $0.02 $(1.75) $(0.08)
Discontinued operations -- 0.02 --
Net income (loss) $0.02 $(1.73) $(0.08)
WEIGHTED AVERAGE
SHARES OUTSTANDING: BASIC
AND DILUTED 12,724,397 11,545,057 8,807,597
BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share information)
MARCH 31, DECEMBER 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash $210 $--
Trade accounts receivable, net
of allowance for doubtful accounts
of $227 and $320 4,225 6,249
Unbilled revenue 286 --
Prepaid expenses and other 339 365
Net assets of discontinued operations 116 336
Total current assets 5,176 6,950
PROPERTY AND EQUIPMENT 5,285 5,281
Less-accumulated depreciation (3,462) (3,123)
Property and equipment, net 1,823 2,158
GOODWILL 14,224 14,224
Less-accumulated amortization (2,312) (2,224)
Goodwill, net 11,912 12,000
OTHER 45 46
TOTAL ASSETS $18,956 $21,154
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $2,337 $3,597
Accounts payable 1,529 2,195
Acquisition payable 589 1,693
Restructuring reserve 642 853
Accrued salaries and other expenses 2,083 2,520
Payable to stockholders 900 900
Deferred revenue 373 324
Total current liabilities 8,453 12,082
OTHER LIABILITIES 19 19
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 35,000,0000
shares authorized; 13,261,888 and 11,545,057
shares issued and outstanding 13 12
Additional paid-in capital 99,430 98,244
Common stock warrants 100 100
Accumulated other comprehensive income (loss) (118) (118)
Retained earnings (deficit) (88,941) (89,185)
Total stockholders' equity 10,484 9,053
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $18,956 $21,154
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SOURCE: Brightstar Information Technology Group, Inc. |
