OAO Technology Solutions, Inc. Announces Financial Results for Third Quarter And Nine Months Ended September 30, 1998
GREENBELT, Md., Oct. 26 /PRNewswire/ -- OAO Technology Solutions, Inc. (Nasdaq: OAOT - news; the ''Company''), a leading Information Technology (IT) solutions and professional services company, announced today the results of its operations for the third quarter and nine months ended September 30, 1998.
For the three and nine months ended September 30, 1998, the company incurred diluted losses per share of $(0.12) and $(0.24) per share, respectively, compared with diluted earnings per share of $0.07 and $0.19 per share for the comparable periods in 1997. Revenues were $34.5 million and $77.9 million for the three and nine months ended September 30, 1998, respectively, compared to $20.6 million and $60.0 million for the comparable periods in 1997. A significant portion of the revenue growth is due to the acquisition of OAO Services, Inc. in July, 1998.
The loss in the three and nine months ended September 30, 1998, was primarily due to provisions for uncollectible accounts receivable of approximately $(0.02) and $(0.13) per share, respectively, and an asset abandonment loss of approximately $(0.09) per share in the third quarter, respectively. The expected asset abandonment loss is related to an enterprise wide financial management project, which has been completely realigned with the Company's new business model and processes. The remainder of the loss was associated with severance costs of $(0.03) and $(0.06) per share related to certain management restructuring. Without these adjustments, the company's diluted earnings per share would have been $0.02 for the third quarter and $0.04 for the nine months ended September 30, 1998.
Commenting on the third quarter and the nine months results, Greg Pratt, the Company's CEO, stated, ''We believe we have taken the appropriate action necessary at this time to strengthen our business by leveraging our core competencies, while maintaining quality service our customers demand. Additionally, we will continue a 'bottom line' focus as we grow revenues while diversifying our customer base. Strategic partnership alliances remain critical to the success of our growth plan.''
OAO Technology Solutions, Inc. provides clients with a wide range of IT solutions and professional services including: systems and software engineering, the operation of large-scale service delivery centers and networks, distributed systems management, applications development and maintenance, staffing augmentation services, enterprise resource planning, integration, implementation and training services, as well as state-of-the-art software solutions for the managed care marketplace.
Visit the Company's Web site, www.oaot.com, for further company news and information. OAO Technology Solutions, Inc. is a Safeguard Scientifics, Inc. (NYSE: SFE - news) partnership company.
SAFE HARBOR STATEMENT: This news release contains statements that are forward-looking statements within the meaning of applicable federal securities laws. These statements are based upon the Company's current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. These risks and uncertainties include the factors discussed in the Company's filings with the Securities and Exchange Commission.
OAO TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) - (Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues $34,520 $20,618 $ 77,866 $59,956
Direct Costs 29,888 16,137 66,621 46,910
Gross Profit 4,632 4,481 11,245 13,046
Selling, General and
Administrative 7,784 3,140 17,892 9,455
(Loss) Income from
Operations (3,152) 1,341 (6,647) 3,591
Interest and Other
(Income) Expense, net (134) 106 (515) 193
(Loss) Income Before
Income Taxes (3,018) 1,235 (6,132) 3,398
Income Tax (Benefit)
Provision (1,046) 519 (2,126) 1,450
Net (Loss)Income $(1,972) $716 $(4,006) $ 1,948
Net (Loss) Income
Per Common Share:
Diluted $(0.12) $0.07 $(0.24) $0.19
Basic $(0.12) $0.07 $(0.24) $0.19
Weighted Average Number of
Common Shares Outstanding:
Diluted 16,425 10,414 16,375 10,414
Basic 16,425 10,000 16,375 10,000
SOURCE: OAO Technology Solutions, Inc.
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