Bill, I have three news from CGIX. Let me know what you think..
7/11/96 - CARNEGIE GROUP PRE-ANNOUNCES 2ND QUARTER 1996 FINANCIAL RESULTS
PITTSBURGH, July 11 // -- Carnegie Group (Nasdaq:CGIX ) today announced preliminary financial results
for the second quarter of calendar year 1996, which ended June 30, 1996. Revenue for the second quarter 1996 was
approximately $6.7 million, compared to $6.6 million recorded for the same quarter last year. Net income for the quarter
was approximately $.02 per share, compared to $.12 per share in the quarter ended June 30, 1995.
Results for the second quarter were affected by the renegotiation of a fixed-price contract which resulted in increased costs
of revenue for the quarter, as engineers related to the contract were underutilized for most of the quarter. Also, revenue from
software licenses for the second quarter of 1996 was lower than for the same quarter last year.
Carnegie Group"s President and Chief Executive Officer, Dennis Yablonsky, said, "These short-term results reflect the
fluctuations that can occur in a services business. Although this may impact our financial performance for the year as a whole,
we remain optimistic about our long-term growth prospects due to the continued market demand for our services and our
solid customer base."
Backlog at June 30, 1996 was approximately $15.0 million, compared to $9.6 million at June 30, 1995. The Company
includes in backlog signed contracts that either have milestones yet to be attained or for which the Company can make a
reasonable estimate of work yet to be performed. As most of the contracts in backlog are terminable by the Company or the
client upon short or no notice, there can be no assurance that contracts reflected in backlog are a reliable measure of future
revenue.
As of June 30, 1996, the Company had a total staff of 233 employees and independent contractors, compared to 209 at
June 30, 1995.
The expected financial results contained in this press release are preliminary as the Company has not yet completed its
financial closing process for the quarter. Final results will be announced on July 22, 1996.
This press release may contain forward-looking statements with respect to anticipated future growth. Any such statements
are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties which could materially affect future results. Such risks include the Company"s dependence on a limited
number of clients and contracts. The loss of, or any significant reduction in the services provided to, any major client, would
have a material adverse affect on the Company. In addition, an unanticipated termination or renegotiation of a major
engagement would have a material adverse affect on the Company. For a more detailed discussion of these risks and other
risk factors affecting the Company, please refer to the risk factors set forth in the Company"s Annual Report on Form 10-K
for the year ended December 31, 1995.
Carnegie Group, Inc. provides client/server software development services that integrate advanced software technologies
with clients" existing computing infrastructures to automate and enhance complex business processes. The Company
performs software development, systems integration and technical consulting services to improve its clients" productivity and
market position in three business areas: customer service; customer contact; and logistics, planning, and scheduling. Within
these areas, Carnegie Group targets its services to clients in the telecommunications, financial services, manufacturing,
defense and healthcare industries.
7/11/96 /CONTACT: John W. Manzetti, Executive Vice President and Chief Financial Officer of Carnegie
Group, 412-642-6900/
(CGIX) CO: Carnegie Group, Inc.
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