LGS Group Announces Excellent Quarterly Results - The
Company Will Seek NASDAQ Listing
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWSFOR: LGS GROUP INC.
ME SYMBOL: LGS.AAUGUST 10, 1998
MONTREAL, QUEBEC--LGS Group Inc. announces higher revenues and
profits for the first quarter ended June 30, 1998. Consolidated
revenues for the quarter totaled $47.7 million compared to $27.5
million for the same period last year, an increase of 73,5
percent. Profits improved by 224 percent to $1.86 million, or
18.4 cents per share, compared to $573,000, or 6 cents per share
last year. The company plans to apply for a listing of its class
A shares on the NASDAQ national market.
Pre-tax profitability for the quarter improved to 7.3 percent from
last year's 3.8 percent and according to Andre Gauthier, LGS'
Senior Executive Vice President, this trend is likely to be
maintained as the company continues its drive to improve its bottom line.
Canadian operations generated $40.5 million in revenue for the
quarter compared to $22.8 million last year, representing a growth
of 78 percent. Revenues related to the Year 2000 issue amounted
to $15.6 million this year compared to $2.9 million last year. If
we exclude these Y2K revenues, the rest of the business in Canada
grew by 25.1 percent to $24.9 million in the first quarter.
In France, revenues stood at $7.2 million for the quarter compared
to $4.7 million last year, representing a growth of 53 percent.
Our French operations have become profitable during the quarter.
In addition, the company continues to market its services to new
clients and to develop its consulting practice in Europe.
Commenting on these results, Andre Gauthier said that they are in
line with LGS' objective to be among the best of breed in the
industry. "We expect to maintain a high growth rate year over
year through organic growth supplemented by acquisitions, he said.
We fully expect to have the US market play an important role in
this strategy", he added to elaborate on the seeking of a listing on NASDAQ.
LGS Group Inc. is one of Canada's largest information technology
consulting firms specializing in management and systems
integration. With annual sales exceeding $134 million, LGS
employs approximately 1,600 professionals in 16 offices located in
Canada and Europe. The company is active in most of the private
and public sectors. |
