Command Systems Announces First Quarter Results
PR Newswire, Tuesday, April 28, 1998 at 17:24
FARMINGTON, Conn., April 28 /PRNewswire/ -- Command Systems, Inc.
(NASDAQ:CMND) today announced financial results for its first quarter ended
March 31, 1998. Revenues totaled $7,934,000, a 54% increase compared with
revenues of $5,144,000 for the 1997 first quarter. Pretax income for the 1998
first quarter was $559,000, as compared with a loss of $214,000 a year ago.
Net income was $455,000 against a loss of $271,000 for the comparable 1997
period. Earnings per share (basic) were $.04 versus a loss of $.06 in the
1997 first quarter. Earnings per share, assuming full dilution, improved to
$.04 from a loss of $.06 for the same period last year.
Edward G. Caputo, Chairman, President and CEO, said, "This was Command
Systems' first quarter as a public company, and we are pleased with our
performance. Our revenue continued to grow as a result of increased Year 2000
and staff augmentation business, and our earnings improved on the higher
volume and as a reflection of higher-margin, value-added project business.
Our gross profit margin increased to 35.6% from 25.2% in the same period last
year."
"The recent investments we have made in our sales and delivery systems are
positioning the Company to shift an increasing percentage of its business
focus from IT staff augmentation to a project orientation," Caputo continued.
"The impact of these changes is beginning to be reflected in our margins,
which have been growing steadily. As we strive to increase our project
business, we expect to encounter short-term variations in both revenue and
earnings growth, primarily due to the timing of necessary additional
infrastructure investments relative to the commencement of new projects."
Command Systems, whose main office is in Farmington, Connecticut, provides
a wide range of information technology solutions and services, consulting,
training and outsourcing to financial services organizations to support their
evolving business processes and systems requirements. The Company has
approximately 400 employees in its main and regional offices in the
Northeastern United States and at its technology resource center in Bangalore,
India. Its web site is comandsys.com.
Certain statements in this press release are "forward-looking statements"
that are subject to risk and uncertainty. The Company's actual performance
could differ materially from the results, performance or achievements
expressed in, or implied by, these statements. Factors that could cause
actual results to differ materially include, but are not limited to, the
Company's ability to manage the growth of its operations and the shift in its
business focus from IT staff augmentation to a project orientation,
competition, the Company's ability to provide IT solutions that keep pace with
continuing changes, evolving industry standards and changing customer
preferences, risks related to acquisitions, the ability to attract and retain
highly skilled employees and managing risks associated with client projects,
as well as other risks detailed in the Company's reports filed with the
Securities and Exchange Commission. The Company has no obligation to update
any forward-looking statements.
Command Systems, Inc.
Consolidated Condensed Statement of Income
(In thousands, except per share data)
(unaudited)
Three Months Ended March 31,
1998 1997
Net Revenue $7,934 $5,144
Cost of Revenue 5,110 3,846
Gross Profit 2,824 1,298
Selling, general and administrative expense 2,157 1,474
Amortization of goodwill 114 --
Earnings/(Loss) from operations 553 (176)
Other:
Interest (income)/expense, net (6) 38
Earnings/(Loss) before provision for income taxes559 (214)
Provision for income taxes 104 --
Minority Interest -- 57
Net Income/(Loss) $455 $(271)
Earnings/(Loss) per share - Basic (A) $0.04 $(0.06)
Earnings/(Loss) per share - Diluted (A) $0.04 $(0.06)
Weighted average number of
shares outstanding - Basic 4,877 4,275
Weighted average number of
shares outstanding - Diluted 4,938 4,275
(A) In 1998 after deducting preferred stock dividends of $260,000.
Condensed Consolidated Balance Sheet
(In thousands)
(unaudited)
Mar. 31, Dec. 31,
1998 1997
Current assets
Cash $ 21,401 $392
Accounts receivable, net 4,937 4,203
Other current assets 301 407
Total current assets 26,639 5,002
Property and equipment, net 2,136 2,034
Other assets 7,276 7,389
Total assets $ 36,051 $ 14,425
Liabilities $3,114 $4,924
Stockholders' equity 32,937 9,501
Total liabilities and stockholders' equity $ 36,051 $ 14,425
SOURCE Command Systems, Inc.
-0- 04/28/98
/CONTACT: Steve Willcox of Command Systems, 860-409-2000/ |
