Earnings are out! Looks good to me. Expect upswing with more contracts.
Claremont Technology Group, Inc. Announces Financial Results for Fiscal Year '97
BusinessWire, Thursday, August 14, 1997 at 08:06
BEAVERTON, Ore--(BUSINESS WIRE)--Aug. 14, 1997--Claremont
Technology Group, Inc. (NASDAQ:CLMT), today announced that revenues
for fiscal year 1997 rose 42% to $67.3 million from $47.3 million in
fiscal 1996.
Net income of $4.2 million for fiscal 1997 represents a
40% increase over net income of $3.0 million for fiscal 1996. This
translates into 1997 earnings per share of $.44 on 9.7 million
shares, compared to $.40 per share on a lower pre-IPO share base of
7.6 million shares for fiscal 1996.
Fourth quarter results were in line with the preliminary release
of results announced by the Company on July 30 and include merger and
other non-operating charges of $671,000 incurred in connection with
acquisitions and a secondary offering terminated earlier in the year.
For the fourth fiscal quarter the Company reported revenues of $18.6
million, an increase of 37% over revenues for fourth quarter 1996 of
$13.6 million. Net income of $.5 million for the quarter represented
a decline from the $.8 million recorded in fourth quarter of fiscal
1996. While earnings per share for the quarter were $.05, the EPS
prior to the non-operating charges was $.09 per share.
"We are pleased with the 42% growth in annual revenues and 40%
growth in net income despite our disappointing fourth quarter. We
saw significant progress in select vertical markets in 1997. Our
growth in the manufacturing sector and the strong backlog for
services created by our Clarety(TM) product in the retirement
business are important long-term developments for Claremont. In
addition, recent acquisitions have added valuable service niches in
communications and the benefit services industries. Finally, our
success in meeting our headcount goals indicates that we can sustain
our plan for aggressive growth," said Paul Cosgrave, Claremont's
Chairman and CEO.
"The fourth quarter was adversely impacted by delays in one
manufacturing and four communications engagements. However, four of
those five projects have started during the first quarter. We are
disappointed that one communications customer decided to proceed with
an alternative solution. While delays are typical in our industry,
we are working to diversify the sales pipeline to mitigate the impact
of simultaneous delays in the future. Our trend toward developing
and acquiring product platforms such as Clarety, CCMS and our newly
acquired service bureau capabilities provide solutions that address
both Year 2000 issues and middle market opportunities. This should
broaden our sales pipeline and add greater diversity of opportunity,"
commented Cosgrave.
"While merger related expenses recorded in fourth quarter dampened
our results, we believe that these acquisitions are additive to our
model, as evidenced by the increase in software license revenue in
the fourth quarter," explained Dennis M. Goett, the Company's Chief
Financial Officer.
This press release contains certain forward-looking statements.
While these statements reflect management's best current judgement,
they are subject to risks and uncertainties that could cause actual
results to vary. These risk factors are identified in the Company's
Form 10-K for the fiscal year ended June 30, 1996, filed with the
Securities and Exchange Commission on September 27, 1996, and the
Company's Form 10-Q for the fiscal quarter ended March 31, 1997,
filed on May 8, 1997.
More About Claremont
Claremont Technology Group, a recognized leader in the systems
integration industry, delivers information technology services to
clients in select industries with a high demand for technology-based
business solutions. Focusing on the customer care needs of its
clients, Claremont's services are provided to large organizations
involved in markets that are experiencing dynamic change. Using its
extensive industry-specific expertise, Claremont designs, develops,
and deploys strategic products and other reusable software that
deliver core elements of customer care solutions to its clients in
its target industries.
In the May 26, 1997, issue of Business Week, Claremont Technology
Group was listed as number 44 of 100 Hot Growth Companies. With
headquarters in Beaverton, OR, Claremont Technology Group has grown
at fiscal year end to 749 employees in 17 offices located throughout
the United States, Canada, Europe, and Australia. The Company's web
site is located at clrmnt.com .
*T
CLAREMONT TECHNOLOGY GROUP INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
Year
ended
Jun 30, 1997 Jun 30, 1996
audited audited
ASSETS
Current assets:
Cash and cash equivalents $ 15,240 $ 526
Receivables:
Accounts receivable, net 13,975 7,811
Revenue earned in excess
of billings 6,537 5,653
Other 179 78
Prepaid expenses and other
current assets 745 683
Refundable income taxes 2,745 --
Deferred income taxes 1,048 266
Notes receivable -- 75
Total current assets 40,469 15,092
Property and equipment, net 5,844 4,069
Other non-current assets, net 9,828 3,804
Total assets 56,141 22,965
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,975 1,464
Line of credit -- 4,600
Current installments of
long-term debt 993 944
Accrued expenses 3,564 3,354
Income taxes payable -- 619
Deferred revenue 763 661
Total current liabilities 7,295 11,642
Long-term debt, excluding current
installments 585 1,578
Deferred income taxes 2,856 775
Total liabilities 10,736 13,995
Shareholders' equity:
Preferred stock, no par value.
Authorized 10,000 shares; no
shares issued or outstanding -- --
Common stock, no par value.
Authorized 25,000 shares;
8,257 and 4,832 shares
outstanding at Jun 30, 1997,
and 1996, respectively 32,741 1,331
Retained earnings 12,645 7,649
Cumulative translation
adjustment 19 (10)
Total shareholders' equity 45,405 8,970
Total liabilities and
shareholders' equity 56,141 22,965
Consolidated Statements of Operations
(In thousands)
Three months Year
ended ended
Jun 30, Jun 30,
1997 1996 1997 1996
Revenue:
Professional fees $ 18,608 $ 13,058 $ 66,811 $ 44,769
Resold products and services 32 592 521 2,556
Total revenue 18,640 13,650 67,332 47,325
Costs and expenses:
Project costs and expenses 10,017 7,197 35,335 23,988
Resold products and services 36 536 490 2,410
Selling, general and
administrative 7,779 4,354 24,591 15,485
Total costs and expenses 17,832 12,087 60,416 41,883
Income from operations 808 1,563 6,916 5,442
Other income (expense):
Interest income 164 11 664 49
Interest expense (35) (105) (185) (182)
Other (54) (17) (105) (36)
Total other income (expense) 75 (111) 374 (169)
Income before income taxes 883 1,452 7,290 5,273
Income tax expense 388 634 3,044 2,250
Net income 495 818 4,246 3,023
Net income per common share 5 cents 11 cents 44 cents 40 cents
Weighted average number of common
and common equivalent shares
outstanding 9,948 7,503 9,761 7,612
*T
CONTACT: Claremont Technology Group Inc.
Dennis M. Goett, 914/697-7510
OR
Fi.Comm, Ltd.
Heidi A. Flannery, 503/844-8888 |
