Here's the reason for the stock's move today:
Data Dimensions Expects Third Quarter Revenue and Earnings to Exceed
Consensus Estimates
PR Newswire - October 06, 1998 08:48
BELLEVUE, Wash., Oct. 6 /PRNewswire/ -- Data Dimensions, Inc. (DDI) (Nasdaq: DDIM) announced today that as a result
of continued strong demand for its information technology (IT) consulting services, earnings per share for the third quarter of
1998 are expected to exceed consensus estimates by approximately 40 percent.
The company made the following forward-looking statements based on its current expectations. These statements may differ
materially from actual results and are presented based on pro forma results giving effect to the ST Labs acquisition, which
closed in the third quarter of 1998 and is being accounted for as a pooling-of-interest transaction.
* Revenue for the third quarter of 1998 is expected to increase approximately 90% from third quarter 1997 revenue of $17.6
million.
* Third quarter gross margins are expected to be approximately equal to year-to-date gross margins of 43 percent.
* Non-recurring charges associated with the acquisition of ST Labs are expected to be approximately $800 thousand.
* Expenses in the third quarter of 1998, excluding non-recurring charges, are expected to be approximately 24% of revenue.
* The company expects net interest expense to be approximately $50 thousand.
"Data Dimensions' business is strong across the board, particularly as related to continued growth in our Knowledge
Consulting division, and the integration of ST Labs is progressing faster than anticipated. Further, we see growing interest for
our IT outsourcing and quality assurance and testing services. These areas present an enormous opportunity for Data
Dimensions, and we expect them to become an increasingly important source of growth in the future," said Larry Martin,
chairman and chief executive officer.
Martin added, "Based on our current book of business, we expect further revenue and earnings growth in the fourth quarter."
About Data Dimensions
Data Dimensions, Inc., based in Bellevue, Washington, provides expertise in process management through value added
consulting services and related products for the design, implementation, test, and maintenance of enterprise-wide information
technology systems. With a staff of more than 800 personnel located in the United States and internationally, Data Dimensions
assists Fortune 500 and similar organizations to plan and execute information technology solutions from the mainframe to the
desktop. For more information about DDI, its products and services, visit DDI's web site at www.data-dimensions.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the
matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and
uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market,
pricing, competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the company's
SEC reports. The company assumes no obligation to update the information in this release.
SOURCE Data Dimensions, Inc.
/CONTACT: Jim McLendon, Director of Investor Relations, 425-468-1158, or
Investor-Relations@data-dimensions.com, or Fay Lim, Director of Marketing,
425-468-1150, or Fay-Lim@data-dimensions.com, both of Data Dimensions, Inc./
/Web site: data-dimensions.com |
