Here it is:
Tuesday October 27, 6:57 pm Eastern Time
Company Press Release
Command Systems Announces Third Quarter
Results
FARMINGTON, Conn.--(BUSINESS WIRE)--Oct. 27, 1998--Command Systems, Inc. (NASDAQ: CMND -
news) today announced financial results for its third quarter and nine months ended September 30, 1998. Revenue
totaled $8,921,000, a 30% increase compared with revenue of $6,861,000 for the 1997 third quarter. The Company's
revenue for nine months totaled $25,552,000, a 44% increase compared with $17,741,000 for the first nine months of
1997.
The Company lost $573,000 from operations in the quarter compared with earnings from operations of $402,000 in
the third quarter of 1997. The Company lost $524,000 from operations in the first nine months of 1998 compared with
earnings from operations of $244,000 in the comparable 1997 period. The Company's gross margin was lower than
expected for the third quarter and nine months ended September 30, 1998, reflecting a less profitable mix of business
and reduced margins from Year 2000 and other project business. Operating results were also lower than anticipated,
primarily due to costs associated with the Company's increase in sales and project management personnel which were
not accompanied by expected growth in project business. In addition, the nine month operating results for 1998 were
affected by certain non-recurring charges, as reported in the second quarter.
The Company reported a net loss of $188,000 for the quarter ended September 30, 1998, against a net loss of
$503,000 for the comparable 1997 period. Net income for the nine month period was $291,000 compared to a net
loss of $853,000 for the same period in 1997.The Company's 1998 results benefited from net interest income of
$319,000 in the third quarter and $610,000 for nine months. The net loss for the quarter and nine months ended
September 30, 1997, were affected by a non-recurring charge of approximately $672,000 resulting from a change in
the tax status of the Company.
Basic and diluted earnings per share for the 1998 third quarter were a loss of $0.02 versus a loss of $0.12 in the 1997
third quarter. Basic and diluted earnings per share for the nine months ended September 30, 1998, were breakeven
compared to a loss of $0.20 in the first nine months of 1997. Earnings applicable to common stockholders for the nine
months ended September 30, 1998 were affected by preferred stock dividends and accretion.
The weighted average number of shares outstanding used in the calculation of basic and diluted earnings per share for
both the quarter ended and nine months ended September 30, 1998, increased over the comparable 1997 periods as a
result of shares issued in conjunction with the Company's March 12, 1998 initial public offering.
Command Systems, whose main office is in Farmington, Connecticut, provides a wide range of information technology
solutions and services, consulting, training and outsourcing to financial services organizations to support their evolving
business processes and systems requirements. Its web site is commandsys.com.
Statements contained in this document which are not historical fact are forward-looking statements based upon
management's current expectations that are subject to risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by forward-looking statements.
Command Systems, Inc.
Condensed Consolidated Statement of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,
1998 1997
Net revenue $ 8,921 $ 6,861
Cost of revenue 6,331 4,380
Gross profit 2,590 2,481
Selling, general and
administrative expense 3,049 2,079
Amortization of goodwill 114 -
Earnings (loss) from operations (573) 402
Other:
Interest (income) expense, net (319) 73
Earnings (loss) before provision
for income taxes (254) 329
Benefit (provision) for
income taxes 66 (672)
Minority interest - (160)
Net loss $ (188) $ (503)
Earnings (loss) per share
- Basic $ (0.02) $ (0.12)
Earnings (loss) per share
- Diluted $ (0.02) $ (0.12)
Weighted average number of
shares outstanding - Basic 7,657 4,275
Weighted average number of
shares outstanding - Diluted 7,674 4,275
Condensed Consolidated Balance Sheet
(in thousands)
(unaudited)
September 30, December 31,
1998 1997
Current assets
Cash $ 19,111 $ 392
Accounts receivable, net 6,409 4,203
Other current assets 659 407
Total current assets 26,179 5,002
Property and equipment, net 2,424 2,034
Other assets 7,096 7,389
Total assets $ 35,699 $ 14,425
Liabilities $ 3,185 $ 4,924
Stockholders' equity 32,514 9,501
Total liabilities and
stockholders' equity $ 35,699 $ 14,425
Command Systems, Inc.
Condensed Consolidated Statement of Income
(in thousands, except per share data)
(unaudited)
Nine Months Ended September 30,
1998 1997
Net revenue $ 25,552 $ 17,741
Cost of revenue 17,390 12,213
Gross profit 8,162 5,528
Selling, general and administrative
expense 8,344 5,284
Amortization of goodwill 342 -
Earnings (loss) from operations (524) 244
Other:
Foreign exchange gain (90) -
Interest (income) expense, net (610) 241
Earnings before provision for
income taxes 176 3
Benefit (provision) for
income taxes 115 (672)
Minority interest - (184)
Net income (loss) $ 291 $ (853)
Earnings (loss) per share
- Basic (A) $ 0.00 $ (0.20)
Earnings (loss) per share
- Diluted (A) $ 0.00 $ (0.20)
Weighted average number of
shares outstanding - Basic 6,730 4,275
Weighted average number of
shares outstanding - Diluted 6,763 4,275
(A) In 1998 after deducting preferred stock dividends of $260,000.
Contact:
Peter Duda (212) 445-8222 |
