Jim,
Good Call! Here is the earnings statement.
Boston Communications Group Reports First Quarter Results April 23, 1998 7:15 AM EDT
WOBURN, Mass.--(BUSINESS WIRE)--April 23, 1998--Boston Communications Group, Inc. (Nasdaq:BCGI) today reported financial results for the first quarter ended March 31, 1998.
For the quarter ended March 31, 1998, the Company reported net revenues of $20.4 million, a 31% increase over $15.6 million reported in the same period last year. Operating cash flow (income from operations before depreciation and amortization) grew 85% to $1.5 million, from $819,000 for the first quarter of 1997. The net loss available to common shareholders was $339,000, or $0.02 per share, compared with net income of $93,000, or $0.01 per share reported in the same period last year.
Commenting on the quarter, E.Y. Snowden, BCG's President and CEO, stated, "We are pleased with the results for the first quarter - each of our four Divisions has shown good growth and we had a significant increase in consolidated operating cash flow. While the Prepaid Division revenues show a 271% increase over the first quarter of 1997, promotion of wireless prepaid by some carriers remains below expectations. We continue to work with these carriers to increase the executive level focus on the aggressive marketing of wireless prepaid to their subscribers. First quarter Prepaid Division revenues grew to $2.9 million compared to $790,000 in the first quarter of 1997. At quarter end, we were processing calls for 378,000 wireless subscribers throughout the United States and Canada."
"The Systems Division achieved solid growth in the first quarter with revenues of $5.1 million, an increase of 28% over the first quarter of 1997. We see this as an affirmation of the global prepaid opportunity and of BCG's position as the premier provider of wireless prepaid solutions. By year end we expect BCG systems to be operational in countries covering over 50% of the population of Latin America. Revenue from our Teleservices Division grew to $4.6 million for the quarter, a 21% increase over the first quarter of 1997. We are pursuing innovative strategies to promote growth in this division, which was somewhat capacity constrained during the first quarter. After a relatively flat 1997, the Roaming Services Division grew 11% over the first quarter of 1997 to $7.8 million in revenue for the first quarter of 1998."
"For the remainder of 1998, we are focused on promoting the explosive growth potential of prepaid wireless both domestically and internationally, increasing the reliability of our service offerings, strengthening our position as a leading outsource vendor for the wireless industry, and controlling costs to promote profitable growth."
Boston Communications Group, Inc. develops, markets and provides high quality innovative roaming services, prepaid wireless services, teleservices, prepaid and voice systems to wireless telephone carriers. The Company's services and systems are designed to enable wireless telephone carriers to focus internal resources on their core business activities, while increasing revenues, improving service quality and reducing costs. Boston Communications Group provides one or more of its services to carriers who serve over 90% of the United States population, including 9 of the 10 largest wireless carriers, by number of subscribers, in the United States. For more information, visit the Boston Communications Group web site at www.BCGI.net.
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties, including Mr. Snowden's comments on the Company s expectations regarding the operation of BCG systems in Latin America, the growth in the Company's Divisions and the Company's plans for increasing the reliability of the Company's service offerings, strengthening its competitive position, and controlling costs. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that would cause actual results to differ materially from those indicated by such forward-looking statements are significant decreases in business from major customers, declines in demand for the Company's services and systems both domestically and internationally, lack of acceptance of the prepaid wireless service and systems, the ability of the Company to successfully support its C2C network, the ability of the Company s carrier customers to successfully market and sell C2C wireless prepaid service, general global economic conditions, and the risk factors detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
BOSTON COMMUNICATIONS GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
3/31/98 3/31/97
Revenues:
Roaming services $ 7,796 $ 7,012
Teleservices 4,589 3,789
Prepaid wireless services 2,934 790
System sales 5,064 4,028
Total 20,383 15,619
Expenses:
Cost of service revenues 12,041 9,419
Cost of system revenues 2,673 2,640
Engineering, R&D 1,403 1,029
Sales and marketing 1,333 1,063
General and administrative 1,414 649
Total 18,864 14,800
Income before depreciation,
amortization, interest and taxes 1,519 819
Depreciation and amortization 2,452 890
Operating loss (933) (71)
Interest income (386) (262)
Income (loss) before income taxes (547) 191
Provision (benefit) for income taxes (208) 98
Net income (loss) $ (339) $ 93
Earnings Per Share:
Net income (loss) per share $ (0.02) $ 0.01
Shares used in computing net income
(loss) per common share 16,302 12,847
-0-
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
3/31/98 12/31/97
Cash and short term investments $ 29,586 $ 33,704
Working capital 37,622 38,210
Property & equipment (net) 38,362 38,087
Total assets 93,220 93,385
Shareholders' equity 79,817 80,104
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