Global Intellicom, Inc. Announces a 115% Increase in Revenues and Earnings From Continuing Operations for the Third Quarter of 1997
November 10, 1997 12:20 PM
NEW YORK, Nov. 10 /PRNewswire/ -- Global Intellicom, Inc. GBIT announced its revenues and earnings for the third quarter of 1997.
Global Intellicom today reported its 1997 third quarter results. Revenue for the third quarter, ended September 30, 1997, was $16.1 million, compared with $7.5 million reported in the comparable period last year, a 115% increase.
The earnings from continuing operations in the third quarter of 1997 were $172,798, or $0.02 per share, after an income tax benefit of $115,198. This was a strong reversal from the third quarter of 1996 when the company reported a pre-tax loss from continuing operations of $230,982 and a post tax loss from continuing operations of $138,589 or ($0.05) per share. The reversal was the result of increased sales and the discontinuance of certain operations.
For the nine months ended September 30, 1997, GBIT reported revenues from continuing operations of $34.6 million, compared with revenues of $13.6 million for the same period in the prior year.
The loss from continuing operations for the first nine months of 1997 was $1 million, before a $403,402 income tax benefit. This compares to a loss from continuing operations in the prior year of $1.5 million.
Including the income tax benefit, the loss from continuing operations for the first nine months of 1997 was $605,104 or ($0.10) per share. This compares with a prior year loss from continuing operations of $923,363 or ($0.29) per share.
RESULTS FROM DISCONTINUED OPERATIONS
During the third quarter of 1997, losses from discontinued operations were $688,246 or ($0.09) per share. For the comparable period in 1996 losses from discontinued operations were $240,790, or ($0.08) per share.
For the first nine months of 1997, the loss from discontinued operations was $3.4 million, or ($0.46) per share. This compares with a loss from discontinued operations in the prior year of $244,279, or ($0.08) per share.
NET RESULTS
Net loss for the third quarter of 1997 inclusive of the discontinued operations was $515,448, or ($0.07) per share. This compares with a net loss of $379,379, or ($0.12) per share in the comparable quarter in the prior year. The net loss for the first nine months of 1997 inclusive of the discontinued operations was $4.2 million, or ($0.56) per share. This compares with a net loss of $1.2 million, or ($0.37) per share for the comparable period in 1996.
THE COMPANY
Global Intellicom, Inc. is a total business solutions company that provides complete solutions to a broad range of complex systems and product needs of the U.S. Government, state and local governments, school systems, and commercial clients: the Company's clients include, Lockheed Martin, Westinghouse, Shared Medical Systems, Littan PRC, Bancorp, the FAA, and other Fortune 500/1000 companies.
The Company provides system development, integration, engineering and network design, cabling and implementation (its "Systems Integration Business"). The company also resells computer hardware, software, and integrated systems (its "Manufacturing Business"). Through acquisitions, internal growth and successful contract awards, the Company has increased its participation as a significant provider of information technology solutions to its customers.
The Company intends to continue to expand and diversify its client base and to pursue other opportunities for commercial application of its expertise.
Global Intellicom, Inc. President, David Mortman, commented: "During this past year, management feels it has identified and brought into focus what does work for the Company and discontinued what doesn't. The ongoing operations now reflect what we believe will ensure the greatest prospect for the Company's ongoing success."
Global Intellicom, Inc.'s management is confident the fourth quarter results will show continued growth in revenue and profits and will leave the company well positioned for substantial increases in both revenue and earnings for the calendar year 1998.
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed in the Company's period reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent of obligation to update these forward-looking statements.
GLOBAL INTELLICOM, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three Months and Nine Months Ended September 30, 1996 and 1997
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Net sales $16,123,908 7,543,090 $34,622,862 13,594,877
Cost of goods sold 13,630,611 6,351,018 30,121,945 11,448,748
Gross profit 2,493,297 1,192,072 4,500,917 2,146,129
Operating Expenses:
Selling, shipping
and general
and administrative 1,630,020 1,251,079 4,507,053 3,400,756
Depreciation
and amortization 28,000 32,034 61,504 56,112
Amortization
of intangibles 216,790 22,201 370,676 66,601
Total 1,872,810 1,305,314 4,939,233 3,523,469
Operating Income
(Loss) 620,487 (113,242) (438,316) (1,377,340)
Other
Expenses-Interest (332,491) (117,740) (570,190) (161,599)
Earnings (Loss)
Before Income Tax
Provision (Benefit) 287,996 (230,982) (1,008,506) (1,538,939)
Income Tax
Provision (Benefit) 115,198 (92,393) (403,402) (615,576)
Earnings (Loss)
From Continuing
Operations 172,798 (138,589) (605,104) (923,363)
Discontinued Operations
Loss from aggregator
operations of subsidiary
to be disposed of (net of
tax benefit of ($160,527),
($1,553,794), ($162,853)
and ($1,816,316) (688,246) (240,790) (3,381,470) (244,279)
Estimated loss on
disposal of aggregator
operations net of tax
benefit of ($139,875) -- -- (233,125) --
Total (688,246) (240,790) (3,614,595) (244,279)
Net Loss $(515,448) $(379,379) $(4,219,698) $(1,167,642)
Net Earnings (Loss)
Per Common Share
Earnings (Loss) From
Continuing operations $0.02 $(0.05) $(0.10) $(0.29)
Discontinued operations (0.09) (0.08) (0.45) (0.08)
Total $(0.07) $(0.12) $(0.56) $(0.37)
Weighted average number
of common shares
outstanding 7,429,230 3,165,678 7,428,230 3,165,678
SOURCE Global Intellicom, Inc. |
