XPDR - unreal, 1 pt. off low, 85% increase in revs. at $143M, international offices, B2B play. Buying and holding here. I know DSL is the underwriter and they suck!
Solid Business Momentum Drives Record Q4 Revenue for Xpedior
Company Anticipates Significant Revenue Growth in 2000
CHICAGO, Feb. 8 /PRNewswire/ -- Xpedior Incorporated (Nasdaq: XPDR - news), the largest industrial strength eBusiness solutions pure play, today announced record financial results for the fourth quarter and year ended December 31, 1999.
Xpedior's annual revenues increased 85.3 percent to $133.9 million from $72.3 million for 1998, with 1999 pro forma revenues totaling $143.3 million. For the fourth quarter of 1999, revenues totaled $40.6 million, an increase of 63.1 percent from the same period a year ago. This strong revenue growth reflected buoyant demand for eBusiness solutions, continued execution of Xpedior's strategic plan, an increase in professional headcount and a favorable pricing environment.
``We ended the calendar year with solid business momentum and expect our revenues to accelerate throughout the coming year,' said David Campbell, Xpedior's Chief Executive Officer. ``Demand for eBusiness solutions is extremely strong, and we continue to make substantial progress on all of our key metrics, including revenue growth, revenue per consultant, average rate per hour, gross margin and professional headcount.'
The fourth quarter gross margin increased to 46.6 percent, up from 40.8 percent in the fourth quarter of 1998, and 42.4 percent in the third quarter of 1999. Commenting on the gross margin expansion, Campbell said, ``The strong gross margin in the seasonally weak fourth quarter can be attributed to a combination of improved pricing and intense demand by customers to get projects completed by the end of the year. We believe we can continue to achieve our intermediate term gross margin target of 45 to 48 percent over the coming 12 to 18 months.'
Expenditures in Selling, General and Administrative (SG&A) increased substantially as a result of Xpedior's continued execution of its strategic plan to create greater brand awareness and due to the aggressive pursuit of new client engagements. The company continued to show excellent sales strength. Among the many new projects initiated in the fourth quarter, 26 are expected to exceed $1 million in revenue each. Two of these projects are currently expected to exceed $10 million in revenue each.
For the fourth quarter, the company reported a loss of $6.9 million versus a loss of $0.3 million during the fourth quarter of 1998. For the calendar year, the loss from continuing operations was $10.0 million, or $0.24 per share, compared to a loss of $0.6 million, or $0.01 per share, for the calendar year 1998. EBITDA was $11.7 million, or $0.28 per share for the calendar year 1999 on a pro forma basis, assuming all acquisitions were consummated as of the beginning of 1999, and prior to stock compensation charges related to stock options granted prior to the company's initial public offering (IPO) in December.
Campbell continued, ``We are extremely proud of our accomplishments in 1999, highlighted by our successful IPO, the largest Internet professional services IPO to date. The IPO has given us the financial capacity to aggressively build our brand and pursue the enormous growth potential in our market. This transaction has also provided us with the currency to successfully compete for the top-caliber eBusiness professionals that are our lifeblood. We believe our position in the marketplace, as the largest industrial strength eBusiness solutions pure play, provides us with a unique opportunity to leverage our existing relationships and aggressively expand our customer base.'
ABOUT XPEDIOR
Xpedior Incorporated, (Nasdaq: XPDR - news), provides innovative, comprehensive eBusiness solutions for Global 2000 companies and emerging digital businesses. Xpedior helps its clients ``imagine' new eBusiness capabilities, then delivers the reliable, scaleable solutions needed to rapidly bring them to market. The company, headquartered in Chicago, has approximately 1,300 employees located in 15 offices in the United States, UK, Canada and Australia. Visit Xpedior at xpedior.com or call 1-877-XPEDIOR. |
