ZMAX Corporation Announces Record Financial Results
GERMANTOWN, Md.--(BUSINESS WIRE)--Aug. 14, 1998--ZMAX CORPORATION (nasdaq Small Cap: ZMAX - news) announced today record revenues and profits for the second quarter and six months ended June 30, 1998.
FOR THE SECOND QUARTER ENDED JUNE 30, 1998
Revenues for the quarter ended June 30 ,1998 were approximately $2,503,000, an increase of approximately $2,442,000 over revenues of approximately $61,000 for the quarter ended June 30, 1997.
EBITDA (''Earnings before interest, taxes, depreciation, amortization, and other income'') for the three months ended June 30, 1998 was approximately $446,000 or $0.04 per share fully diluted, an increase of approximately $2,113,000, as compared to the EBITDA of ($1,667,000) or ($0.29) per share fully diluted for the three months ended June 30, 1997.
Net income for the quarter ended June 30, 1998 was approximately $234,000 or $0.02 per share fully diluted, an increase of approximately $2,338,000, as compared to the net loss of approximately ($2,104,000) or ($0.36) per share fully diluted for the three months ended June 30, 1997.
FOR THE SIX MONTHS ENDED JUNE 30, 1998
Revenues for the six months ended June 30, 1998 were approximately $4,027,000, an increase of approximately $3,966,000 over revenues of approximately $61,000 for the six months ended June 30, 1997.
EBITDA (''Earnings before interest, taxes, depreciation, amortization, and other income'') for the six months ended June 30, 1998 was approximately $54,000 or $0.01 per share fully diluted, an increase of approximately $2,898,000, as compared to the EBITDA of ($2,844,000) or ($0.61) per share fully diluted for the six months ended June 30, 1997.
Net loss for the six months ended June 30, 1998 was approximately ($448,000) or ($0.05) per share fully diluted, a decrease of approximately $3,801,000, as compared to the net loss of approximately ($4,249,000) or ($0.92) per share fully diluted for the six months ended June 30, 1997.
Michael C. Higgins, President and CEO, remarked, ''We are very pleased with our financial results for the second quarter and the six months ended June 30, 1998. We continue to expand our services to meet our clients' dynamic requirements in systems remediation and IT consulting services.
''Our testing services have continued to expand and we have introduced Independent Validation and Verification (''IV&V'') tools and services for our clients' systems and processes. ZMAX is positioning itself for further expansion beyond our core Y2K business.
''R&D spending is being directed toward improving and enhancing productivity of our proprietary systems tools as we continue to aggressively broaden their commercial applications. We shall continue to strategically position the Company for long-term growth well into the 21st Century.''
ZMAX Corporation is an IT consulting and re-engineering company focusing presently on system re-engineering and IT consulting services relating to Y2K analysis and remediation, system testing, project management, validation and verification of IT systems and processes, as well as other IT related services.
Statements made in this Press Release that are not historical or current facts are ''forward looking statements'' made pursuant to the safe harbor provisions of federal securities laws.
Forward looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risk and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.
Such factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, and failure to capitalize upon access of new clientele.
Specific risks and uncertainties which may affect forward looking statements about the business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive service or solution to the Company's services or products and delays in the market awareness of ZMAX and its product and service solutions.
These factors and others are discussed in the ''Management Discussion and Analysis'' section of the Company's Annual Report on Form 10K for the fiscal year ended December 31, 1997, to which reference should be made.
ZMAX CORPORATION is quoted on the NASDAQ Small Cap exchange under the symbol of ''ZMAX'' and on the Frankfurt and Berlin Stock Exchanges under the symbol of ''ZMX''.
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