IMRS EPS, looks good
IMRGlobal Reports First Quarter Results; Revenue Up 12% Over Last Year, Up 30%
Sequentially
Business Editors
CLEARWATER, Fla.--(BUSINESS WIRE)--May 2, 2000--
First Quarter Highlights:
-- Returned to profitability with 30% increase in revenue over
previous quarter
-- Gross Profit increased 80% over previous quarter
-- e-business revenues increased 19% over previous quarter
-- Acquired Intuitive Group Limited, a leading provider of electronic
customer relationship management (e-CRM) systems for the financial
services industry
-- Industry veteran, William T. McCarthy, joined as President of US
Operations
-0-
*T
Financial Summary
($ in thousands, except per share data)
Quarter Quarter
ended ended
March 31, Dec 31,
--------- --------
2000 1999 1999
-------- -------- --------
Revenue $ 58,320 $ 51,888 $ 45,027
Pro forma net income (loss)(a) $ 4,302 $ 5,135 $(26,662)
Pro forma earnings (loss) per
share(a) $ 0.10 $ 0.14 $ (0.71)
(a) Pro forma results exclude depreciation and amortization expenses,
net of taxes.
*T
-0-
IMRglobal Corp. ("IMRglobal" or the "Company") (Nasdaq:IMRS), a
leading global provider of e-business and information technology
solutions, today announced results for the first quarter ended March
31, 2000.
Revenue was $58.3 million for the first quarter of 2000, an
increase of 12.3% over the $51.9 million reported for the same quarter
last year, and an increase of 29.6% over the $45.0 million in the
fourth quarter of 1999. On a pro forma basis (excluding depreciation
and amortization expenses, net of taxes), net income was $4.3 million
for the quarter ended March 31, 2000, compared to $5.1 million
reported for the same quarter last year. On the same pro forma basis,
earnings per share-diluted was $0.10 for the quarter ended March 31,
2000, compared to $0.14 for the same period last year and a loss of
$(0.71) for the fourth quarter of 1999.
Satish K. Sanan, Chairman and Chief Executive Officer of
IMRglobal, said, "We are very pleased to report this significant
increase in revenue from levels of the fourth quarter and the
Company's return to profitability. I would also note that on a
year-to-year basis, non-Y2K revenue increased by 61% over the first
quarter of 1999. In addition, we are pleased that our gross margins
improved from the 29% reported last quarter to back up above the
historical 40% levels, resulting in an 80% increase in gross profits.
The improved results this quarter compared to the last quarter confirm
our previously stated belief that the fourth quarter of 1999 was a low
point in our revenue and income levels. We are now eager to build our
business further upon the foundation we have laid over the past few
months."
Mr. Sanan added, "As we look out to the future, the prospects for
IMRglobal are very promising. In fact, we are currently negotiating
several new multi-year contracts of significant value. While there is
no assurance that all of those negotiations will result in contracts,
if those contracts are signed, their value would easily eclipse our
old record in new contracts signed for one quarter. We continue to
experience strong demand in all segments of our service offerings,
both traditional and e-business."
"Our e-business revenues, in particular, grew by 19% over last
quarter, and our client base in this segment is a well-diversified
range of companies. Much of the growth was in projects involving the
integration of e-business architecture and legacy systems, a
high-growth area where IMRglobal is particularly strong. Also
promising for the future, much of our e-business is coming in as
large, shorter-term projects having rapid delivery cycles, thereby
quickly contributing to our financial results. I would also underscore
that our business is strong across our vertical industry practices,
with notably improved performance in our healthcare, financial
services and insurance segments, which as a group grew 38% from last
quarter. Overall, the success of our strategic initiatives has
certainly been validated by this quarter's results, but we believe
there is still significant operating leverage available to us from our
current base of operations. We hope to report additional progress as
we proceed with our business plan through the remainder of the year."
About IMRglobal Corp.
IMRglobal is a leading global provider of e-business and
information technology solutions to Fortune 500 and Global 2000
companies in key vertical industries. Those industries include
insurance, capital markets, healthcare, utilities, retail &
distribution and manufacturing. IMRglobal's services include business
consulting, e-business, software development, application management
and professional services. For more information on IMRglobal, visit
www.imrglobal.com.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: With the exception of statements regarding
historical matters and statements regarding the Company's current
status, certain matters discussed herein are forward-looking
statements that involve substantial risks and uncertainties. These
forward-looking statements may include those identified by the use of
the words "anticipate", "believe", "estimate", "expect", "hope",
"intend" and similar expressions. Actual results, performance or
achievements could differ materially from these forward-looking
statements. Factors that could cause or contribute to such material
differences include the failure to convert prospects into actual
business, risks related to our merger and acquisition strategy,
variability of operating results, potential cost overruns on
fixed-price projects and competition in the IT services industry. A
discussion of these and other risk factors that may cause actual
results to differ from these forward-looking statements can be found
in the Company's periodic filings with the SEC under the Securities
Exchange Act of 1934.
-0-
*T
IMRglobal Corp.
CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
2000 1999
-------- --------
Assets
Current assets:
Cash and marketable securities $ 23,632 $ 37,432
Accounts receivable, net 54,892 46,031
Unbilled work in process 7,437 7,756
Other current assets 18,331 16,946
-------- --------
Total current assets 104,292 108,165
Property and equipment, net 40,305 36,973
Other assets 183,961 158,660
-------- --------
Total assets $328,558 $303,798
======== ========
Liabilities and Shareholders' Equity
Total current liabilities $ 50,105 $ 61,074
Long-term debt 30,222 985
Other liabilities 6,769 6,816
-------- --------
Total liabilities 87,096 68,875
Shareholders' equity 241,462 234,923
-------- --------
Total liabilities and shareholders' equity $328,558 $303,798
======== ========
IMRglobal Corp.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
------------------
2000 1999
------- -------
Revenue $58,320 $51,888
Cost of revenue 34,742 27,739
------- -------
Gross profit 23,578 24,149
Percentage of revenue 40.4% 46.5%
Selling, general and
administrative expenses 17,773 11,338
Research & development 678 1,232
Goodwill and intangible amortization 2,445 821
Acquired in-process research &
development -- 3,410
Acquisition costs -- 1,936
------- -------
Income from operations 2,682 5,412
Percentage of revenue 4.6% 10.4%
Other income 109 1,595
------- -------
Income before provision
for income taxes 2,791 7,007
Provision for income taxes 1,258 3,340
------- -------
Net income $ 1,533 $ 3,667
======= =======
Earnings per share - diluted $ 0.04 $ 0.10
======= =======
Pro forma "cash" net income (A) $ 4,302 $ 5,135
======= =======
Pro forma "cash" earnings
per share-diluted (A) $ 0.10 $ 0.14
======= =======
Shares outstanding - diluted 42,335 35,775
======= =======
(A) Pro forma "cash" net income and earnings per share - diluted
exclude amortization and depreciation, net of income taxes.
*T
--30--nmb/mi*
CONTACT: IMRglobal Corp., Clearwater
Tim Klahs, VP Investor Relations
727/467-8163
e-mail: tklahs@imrglobal.com
or
The Financial Relations Board, New York
Kerry Thalheim, 212/661-8030
KEYWORD: FLORIDA
INDUSTRY KEYWORD: E-COMMERCE EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
May-02-2000 21:06 GMT
Symbols:
US;IMRS
Source BW Business Wire |
