COGNICASE Comments on Fourth Quarter Results
MONTREAL, CANADA--OCTOBER 20, 2000 - 09:41 EDT
COGNICASE Inc. (Nasdaq: "COGI") today commented
on its results for the fourth quarter and fiscal year ended
September 30, 2000. Final results are scheduled for release on
November 27, 2000.
Fourth quarter 2000 revenues are expected to be in the range of
US$54.0-56.0 million, compared to US$37.9 million in the
corresponding 1999 period. Cash loss, which excludes foreign
exchange gains/losses and goodwill amortization, should be in the
range of US$0.08-11 per share fully diluted, compared to cash
earnings of US$0.30 per share on a fully diluted basis in the
fourth quarter of last year.
For fiscal 2000, the Company expects revenues of US$192.0-194.0
million, compared to US$144.9 million in fiscal 1999. Cash
earnings, which exclude foreign exchange gains/losses and goodwill
amortization, should be in the US$0.18-21 per share range,
compared to US$1.18 per share in 1999.
While revenues increased 33-34% year-over-year and 11-15%
sequentially from the third quarter of fiscal 2000, this rate of
growth is somewhat below expectations. This revenue shortfall is
the main reason for the cash loss in the fourth quarter. The
Company has also maintained a high level of investment in R&D, as
well as in business development related to its growing e-business
integration units and Wireless/Internet initiatives.
The Company attributes the revenue shortfall to tighter demand in
the Canadian market and delays in finalizing contracts. In
addition, since the Company reports in US dollars, the weakness of
the euro has also reduced reported revenues.
Outlook for Fiscal 2001
"Based on current market conditions, we expect a solid first
quarter to start fiscal 2001," said Ronald Brisebois, President
and Chief Executive Officer. "We are currently operating at high
utilization rates and our e-business units are building strong
growth momentum. These business units should continue to
contribute an increasing proportion of our revenues in the coming
quarters."
"We will also benefit from our strategic partnership with National
Bank of Canada, a relationship that provides COGNICASE with a firm
revenue backlog and excellent opportunities for additional
business." Mr. Brisebois noted that the integration of the Bank's
former information technology subsidiary has been completed and
that business development synergies will be reflected in future
quarters.
"Based on current trends in our business and our assumptions for
the year as a whole, we are optimistic that the Company will
continue to achieve sequential revenue growth in fiscal 2001,"
concluded Mr. Brisebois.
Conference Call
COGNICASE will host a conference call at 12:00 p.m. EST today.
About COGNICASE
COGNICASE (TSE : "COG", Nasdaq : "COGI" ) is an innovative
e-business integrator and Wireless/Internet electronic solutions
provider, with offices in several major North American and
European business centers. Based on its results-driven approach,
technologies, international IT engineering/hosting center,
COGNICASE offers innovative solutions that contribute to the
business success of its customers in the digital economy.
COGNICASE consists of the following three business units:
Outsourcing and Integration, Web and Wireless Integration and
Electronic Business Solutions. COGNICASE operates in several
countries, including Canada, the United States, France, Spain,
Belgium, the Netherlands and Australia.
Forward-looking statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
(US), which involve risks and uncertainties. As a result of a
number of factors, including factors that the Company may not
currently foresee, the Company's actual results could differ
materially from those set forth in the forward-looking statements.
Certain other factors that might cause the Company's actual
results to differ materially from the forward-looking statements
include the Company's ability to (i) successfully develop
additional products and services and new applications for its
existing products and services and otherwise respond to rapid
changes in technology, (ii) successfully compete in its industry
for customers and developers and other personnel with expertise in
information technology, (iii) successfully identify and consummate
acquisitions on favorable terms and integrate acquired businesses,
(iv) successfully manage its growth and changing business, (v) be
awarded contracts under its IS/IT and Preferred Supplier Agreement
with the National Bank of Canada, as well as other risks and
uncertainties set forth under the heading "Risk and Risk
Management" in its 1999 annual report. |
