ZMBA...this is shaping up nicely:
(BSNS WIRE) ZAMBA Solutions Announces Results for 2003
ZAMBA Solutions Announces Results for 2003
Business Editors
MINNEAPOLIS--(BUSINESS WIRE)--ZMBA--
Estimates 43% Revenue Growth and a Return
to Profitability in Q1 2004; Receives Recognition from
The Gartner Group for Exceptional Service Quality
ZAMBA Solutions (OTCBB:ZMBA) today announced its results for the
fiscal fourth quarter and year-ended December 31, 2003. Annual
revenues before reimbursement of direct costs for 2003 were
$9,096,000, compared to $10,184,000 for 2002. Net income for the year
was $1,743,000, or $0.04 per share, including a $2,603,000 gain on
sales of a portion of our NextNet shares, compared to a net loss of
$6,613,000, or $0.17 per share for 2002, including a $5,199,000 gain
on sales of a portion of our NextNet shares. Revenues for the fourth
quarter before reimbursement of direct costs were $1,505,000 compared
to $2,504,000 for the fourth quarter of 2002. Quarterly net loss was
$859,000, or $0.02 per share for the fourth quarter of 2003, compared
to a net income of $1,803,000 or $0.05 per share for the fourth
quarter of 2002, including a $2,234,000 gain on sale of a portion of
our NextNet shares.
Q1 2004 Guidance
The Company expects revenues before reimbursement of direct costs
for the first quarter of 2004 to be approximately $2,150,000, up 43%
from the fourth quarter of 2003. Net income for the first quarter of
2004 is expected to be $0.02 per share, including a gain on sales of a
portion of our NextNet shares of $0.02 per share.
Gartner Recognition for Exceptional Service Quality
The Company also announced it has recently received recognition
for exceptional delivery and customer service capabilities from The
Gartner Group by having the highest overall satisfaction rating of all
vendors evaluated for the CRM Magic Quadrant. Over 1,000 firms were
evaluated, including such brand names as Accenture and IBM Global
Services.
"While the fourth quarter did not produce the numbers that we
forecasted, we have made a great deal of progress in the first quarter
to get the company back to profitability," said Norm Smith, President
and Chief Executive Officer. "We are also excited about our recent
recognition by Gartner for our exceptional delivery and customer
service capabilities and hope to leverage this in the market-place."
About ZAMBA Solutions
ZAMBA Solutions is a premier customer care services company. We
help our clients be more successful in acquiring, servicing, and
retaining their customers. Having served over 300 clients, ZAMBA is
focused on customer-centric services by leveraging best practices and
best-in-class technology to enable insightful, consistent interactions
across all customer touchpoints.
ZAMBA's clients have included Best Buy, Canon, GE Medical Systems,
Direct Energy Essential Home Services, Fleet Bank, Hertz, General
Mills, Microsoft Great Plains, Nikon, Northrop Grumman, Symbol
Technologies, Union Bank of California, and Volkswagen of America. The
company has offices in Minneapolis, San Jose and Toronto. For more
information, contact ZAMBA at www.ZAMBAsolutions.com or (800)
677-9783.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or
achievements to be materially different from the results, performance
or achievements expressed or implied by the forward looking
statements. Factors that impact such forward looking statements
include, among others, the growth rate of the marketplace for
customer-centric solutions, our ability to develop skills in
implementing customer-centric solutions, the ability of our partners
to maintain competitive products, the impact of competition and
pricing pressures from actual and potential competitors with greater
financial resources, our ability to obtain large-scale consulting
services agreements, our ability to fund our operations, client
decision-making processes, changes in expectations regarding the
information technology industry, our ability to hire and retain
competent employees, possible changes in collections of accounts
receivable, changes in general economic conditions and interest rates,
and other factors identified in our filings with the Securities and
Exchange Commission.
"ZAMBA Solutions" is a trade name under which Zamba Corporation
conducts operations.
-0-
*T
ZAMBA CORPORATION
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(000's omitted)
December 31, December 31,
ASSETS 2003 2002
------------ ------------
Cash and cash equivalents $699 $549
Accounts receivable, net 618 662
Unbilled receivables 79 470
Prepaid expenses and other current assets 108 507
------------ ------------
Total current assets 1,504 2,188
Property and equipment, net 326 531
Other assets 57 102
------------ ------------
TOTAL ASSETS $1,887 $2,821
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Line of credit $436 $298
Note payable - 1,000
Current installments of long-term debt - 266
Accounts payable 128 584
Accrued expenses 919 2,593
Deferred revenue 187 57
Deferred gain on sale of NextNet shares 783 25
------------ ------------
Total current liabilities 2,453 4,823
Long-term debt, less current installments - 164
Other long-term liabilities - 164
------------ ------------
Total liabilities 2,453 5,151
Common stock 389 388
Additional paid-in capital 86,080 86,060
Accumulated deficit (87,035) (88,778)
------------ ------------
Total stockholders' deficit (566) (2,330)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT $1,887 $2,821
============ ============
ZAMBA CORPORATION
SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted except for
per share information)
For the three For the
months ended year ended
December 31, December 31,
--------------- ----------------
2003 2002 2003 2002
------- ------- ------- --------
Revenues:
Professional services $1,505 $2,504 $9,096 $10,184
Reimbursable expenses 162 230 921 915
------- ------- ------- --------
Total revenues 1,667 2,734 10,017 11,099
Costs and expenses:
Project and personnel costs 1,222 1,590 5,705 9,366
Reimbursable expenses 162 230 921 915
Sales and marketing 332 168 1,161 1,750
General and administrative 772 1,116 3,156 7,291
Restructuring and unusual charges - - - 3,321
------- ------- ------- --------
Loss from operations (821) (370) (926) (11,544)
Other income (expense):
Gain on sale of NextNet shares - 2,234 2,603 5,199
Interest income - - - 12
Interest expense (38) (61) (132) (280)
------- ------- ------- --------
Other income, net (38) 2,173 2,471 4,931
------- ------- ------- --------
Income (loss) before extraordinary
item (859) 1,803 1,545 (6,613)
Extraordinary gain from
extinguishment of debt - - 198 -
------- ------- ------- --------
Net income (loss) ($859) $1,803 $1,743 ($6,613)
======= ======= ======= ========
Net income (loss) per share:
Basic ($0.02) $0.05 $0.04 ($0.17)
======= ======= ======= ========
Diluted ($0.02) $0.05 $0.04 ($0.17)
======= ======= ======= ========
Weighted average shares outstanding:
Basic 38,884 38,794 38,851 38,419
======= ======= ======= ========
Diluted 38,884 38,794 41,320 38,419
======= ======= ======= ========
*T
KEYWORD: MINNESOTA
INDUSTRY KEYWORD: SOFTWARE EARNINGS
SOURCE: ZAMBA Solutions
CONTACT INFORMATION:
ZAMBA Solutions, Minneapolis
Michael H. Carrel, 952-844-3113
mcarrel@ZAMBAsolutions.com
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