Telos Reports Results For First Quarter 1998
ASHBURN, Va.--(BUSINESS WIRE)--May 15, 1998--Telos(R) Corporation announces its first quarter 1998 financial performance. For the three months ending March 31, 1998, total revenues decreased approximately $10.5 million to $43.8 when compared to the three months ending March 31, 1997. This decrease is primarily attributed to the Systems Integration group, which reported decreased sales of $12.0 million. Offsetting this decrease were increased sales during the period by the Systems and Support Services group and majority-owned subsidiary Enterworks, Inc. of approximately $500,000 and $1.0 million, respectively.
The Company incurred an operating loss of $3.1 million for the first quarter in 1998, as compared to $947,000 of operating income for the first quarter of 1997. This decline in operating profit is primarily a result of decreased sales volume and a change in product mix attributable to the end of the Systems Integration groupFs contract with the Immigration and Naturalization Service effective September 30, 1997.
Net income increased approximately $1.5 million to a $677,000 profit for the three-month period ending March 31, 1998, as compared to an $801,000 of net loss in the same three-month period in 1997. The overall increase in net income resulted from the sale of substantially all of the net assets of the Information Systems division for approximately $14.7 million in proceeds for a gain of $5.7 million, offset by the decreased profitability discussed above. The financial results for the three months ending March 31, 1998 are explained in more detail in the CompanyFs quarterly report on Form 10-Q as filed with the Securities and Exchange Commission. |
