Bill, I assume that you have read the earnings release. That in itself is the first reason for optimism. Revenue, margins, and net income were all higher than analysts expectations. Number of technical employees is 227 vs. 198 at year end, which reflects the net addition of 22 KBS folks and some nominal hiring. Consultant utilization for the quarter, was if my memory serves, about 88% basically at their 90% target. Number of projects is up. Large DoD project announced, which these guys *should* get their share of (though work probably wouldn't start until 4Q at earliest), which is not factored into analysts' numbers for the year. They are close to hiring a sales manager, which is big news, because it will free up Dennis Yablonsky from this day to day responsibility and should allow him to spend more time on looking at acquisitions, etc. John Manzetti said there has been a marked increase in the number of acquisition prospects they have been seeing over the last 90 days. In short, it seems as though they have posted a strong rebound from the disasterous 4Q 97. It will still take time to regain analysts' and wall street's confidence (though Volpe raised CGIX to a buy from neutral), but hey, that leaves us with a buying opportunity. . .
Good luck.
Cheers,
Thomas |
