Or maybe Friday:
Thursday July 9, 5:51 pm Eastern Time
Company Press Release
Icon CMT Corp. Comments on Expected Second Quarter 1998 Results
WEEHAWKEN, NJ--(BUSINESS WIRE)--July 9, 1998--Icon CMT Corp. (Nasdaq: ICMT - news), today announced that based on currently available information, it expects to report net revenue for the quarter ended June 30, 1998 in the range of $18.5 million to $19.0 million compared to $11.6 million reported in the second quarter of 1997. Excluding certain non-recurring charges, the net loss for the second quarter of 1998 is expected to be in the range of $5.5 million to $5.8 million, or a loss of $0.35 to $0.37 per share. This compares to a net loss of $2.8 million, or $0.41 per share reported in the same period last year. Including the non-recurring charges, consisting of transaction costs associated with the acquisition of Frontier Media Group completed in May, 1998, the Company expects to report a net loss for the second quarter in the range of $6.6 million to $7.0 million, or $0.42 to $0.44 per share.
Although the Company expects to report strong revenue growth for the quarter ending June 30, 1998 over the same period last year, the growth was restrained primarily by certain delays in the provisioning of its Internet access installation service orders by its bandwidth suppliers. This is evidenced by a substantial increase in the Company's backlog for communications services pending on June 30, 1998 which increased by approximately 160% over the backlog for the first quarter of 1998. Despite this increased backlog, communications services are expected to grow in excess of 160% over the second quarter of 1997. The Company has already identified and has begun purchasing communications infrastructure facilities from additional suppliers and is in the process of circulating a RFP in order to address its expanding bandwidth and facilities requirements.
Scott Baxter, President and Chief Executive Officer of Icon CMT Corp. commented, ''While we are pleased to continue a record of strong revenue growth in our service businesses, provisioning issues kept us from growing at an even more impressive rate. We are encouraged that demand continues to grow and the Company is responding to the challenge to scale our communications organization and infrastructure to meet this demand. We remain confident that the company is strategically positioned to benefit from the favorable long- term prospects for the Internet sector.''
During the quarter, Icon CMT continued to execute its strategy of delivering recurring value-added Internet solutions for businesses and corporations. The Company expects that Services revenue for the quarter ended June 30, 1998 will increase by approximately 70% from $6.7 million for the same period a year ago. This growth is driven by an increase of approximately 160% in communication services revenue from $1.2 million for the quarter ended June 30, 1997; and an increase of approximately 50% in professional services revenue from $5.5 million a year ago. The Company expects that third-party product resale revenue will increase over 50% from $4.9 million in the comparable period in the prior year.
About Icon CMT Corp.
Icon CMT Corp. is a tier-one Internet solutions provider for businesses and corporations. The Company offers a value- added platform of communications, technology and professional services to provide organizations with end-to-end solutions for the design, development and management of information and mission-critical applications across its nationwide network backbone. Founded in 1991, Icon CMT is traded on Nasdaq under the symbol ICMT.
Additional information about Icon CMT is available through the company's Web site at icon.com, or by calling 1-800-ASK-ICON (275-4266).
This release may include forward-looking statements concerning Icon CMT's intent, belief or current expectations with respect to, among other things, trends affecting its financial condition or results of operations and its business and growth strategies. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Icon CMT does not undertake any obligation to update or revise any forward-looking statements.
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Contact:
Ken Hall
Icon CMT Corp.
Senior Vice President and
Chief Financial Officer
201-319-5301
khall@icon.com
or
Andrea Kaimowitz
Press: Lee Foley
Morgen-Walke Associates
212 850-5600
andrea@morganwalke.com
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