Bought CVGP pre-market on $100 million in contracts, 5m float and 100k already traded, with most of Wall Street away. Recent IPO out of quiet period.
ABOUT CVGP:
Convergent Group Corp. provides consulting, software engineering,
systems integration and project management services that enable our utility
and local government clients to implement Internet-based business
solutions. For the three months ended 3/31/00, revenues rose 26% to
$18.6 million. Net loss applicable to Common totalled $899 thousand vs.
an income of $1.4 million. Results reflect an increase in integration and
consulting revenues and an increase in headcount.
TODAY'S NEWS:
Thursday August 31, 8:04 am Eastern Time
Press Release
Convergent Group Emerges From IPO Quiet Period
With Over $100 Million in New Contracts
Total Value of Contracts Signed While in Registration Exceeds $100 Million; New Digital Utility
Boosts Backlog, Client Base and Contract Size
ENGLEWOOD, Colo.--(BUSINESS WIRE)--Aug. 31, 2000-- Convergent Group Corporation (Nasdaq:CVGP - news), a
leading provider of technology-based business solutions for utilities and local governments, today provided information relating to
contracts for new business signed during the pendency of its IPO ``quiet period''.
The company completed its initial public offering of common stock on August 1, 2000. The legally mandated quiet period for
Convergent Group began during February 2000 and concluded earlier this week.
During the six-month quiet period, Convergent Group signed contracts totaling over $100 million, an increase of 51 percent over the
$65 million in new contracts signed during full-year 1999. These contracts, signed primarily by utility clients seeking the company's
proprietary Digital Utility(SM), call for Convergent Group to provide these customers and partners with state-of-the-art
Internet-based business solutions that enable them to transform their organizations into digital business environments.
``We landed more new business contracts in the first six months of 2000 than we did in all of 1999 -- a year in which we reported
revenues of $66.7 million,'' said Glenn Montgomery, Convergent Group's CEO and chairman. ``This progress makes it abundantly
clear that utilities across the country and around the world are recognizing the value of our Digital Utility. In addition to significantly
increasing the total dollar value of our contract backlog, new Digital Utility contracts have increased our total client base, as well as
the total number of pending contracts, which helps minimize the relative importance of any one client or contract and enhances the
stability of our business. And not only has the number of pending contracts increased, but the average value of each contract has
increased. Accordingly, each new Digital Utility contract signed takes us incrementally closer to our overarching goal of providing
maximized value for our new and valued public shareholders.''
As used in this release, the dollar value of new contracts signed reflects total amounts payable to Convergent Group over the life of
the contract.
About Convergent Group
Convergent Group Corporation is a provider of consulting, software engineering, systems integration and project management
services that enable its utility and local government clients to implement Internet-based business solutions, also known as eBusiness
solutions. These solutions enable Convergent Group's clients to transform their organizations into digital business environments that
integrate data from various isolated sources to create a single, Web-based point of entry through which internal decision-makers,
business partners, suppliers, customers and constituents can access business information on a real-time basis.
By combining its use of existing and emerging digital technologies with Convergent Group's expertise in the utility and local
government sectors, the company is able to help its clients increase revenues, reduce costs, improve customer services, ensure
service reliability, improve resource management and exploit their information assets. The company headquarters are located at
6399 South Fiddler's Green Circle, Suite 600, Englewood, Colo. 80111. The company was founded in 1985 and is comprised of
over 400 employees doing business in seven countries: the United States, Canada, England, Australia, New Zealand, Korea and
South Africa. Visit the company online at www.convergentgroup.com.
Digital Utility is a service mark of Convergent Group Corporation.
This release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, which
involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the
forward-looking statements include the possibility that the referenced contracts could be cancelled by the company's clients, that
Digital Utility services may not continue to be purchased by clients, competitive and technological factors effecting the company's
operations, markets, products, as well as other factors detailed in the company's filings with the Securities and Exchange
Commission.
NOTE: I started a position at 5 1/4, then added at 5 1/2. . . am daytrading volatility and momentum only. . .the stock is moving very quickly. . now 5 11/16 as I write on 200K traded on 300 trades. Generally I hold these, but I hope to sell this little one today after a larger pop. . to perhaps the $7 range.
Best wishes,
Rande Is |
