Zmax Corporation Announces Record Third Quarter Results
GERMANTOWN, Md.--(BUSINESS WIRE)--Nov. 9, 1998--Zmax Corporation (Nasdaq Small Cap: ZMAX - news) announced today record revenues and profits for the third quarter ended September 30, 1998.
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 1998
Revenues for the third quarter ended September 30, 1998 were approximately $2,581,000, an increase of 472% over revenues of $451,000 in the third quarter of 1997.
Gross profit for the third quarter ended September 30, 1998 was approximately $1,826,000, an increase of 712% over gross profit of $225,000 for the comparable three-month period ended September 30, 1997.
Gross profit for the third quarter ended September 30, 1998 was approximately 71% of revenues for that period as compared to 50% of revenues for the quarter ended September 30, 1997.
Net income (loss) excluding amortization of costs of a prior acquisition and software costs for the third quarter ended September 30, 1998 was approximately $712,000, or $0.07 per share on a fully diluted basis, as compared to a net loss of approximately $1,110,000, or net loss of $0.19 per share on a fully diluted basis, for the third quarter ended September 30, 1997.
Net income for the third quarter ended September 30, 1998 was approximately $421,000, or $0.04 per share on a fully diluted basis, as compared to a net loss of approximately $1,349,000, or a net loss of $0.23 per share on a fully diluted basis, for the third quarter ended September 30, 1997.
James T. McCubbin, Vice President and CFO of ZMAX, remarked, ''We are extremely pleased to report the results of our second consecutive profitable quarter of operations on revenues that are more than five times the revenues for last year's comparable quarter.
''Our profitable results reflect not only an increase in revenues, but also the increasing operating efficiencies that our employees, methodologies, and tools are providing to our bottom line profitability. The Company continues to materially grow and improve as we add new clients, build on our backlog, expand our services, and strategically position the Company for consistent and profitable growth into the future.''
ZMAX is an Information Technology (IT) consulting and re-engineering company presently focusing on system re-engineering and IT consulting services relating to Y2K analysis and remediation, system testing, project management, independent 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 ZMAX'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 ZMAX's Annual Report on Form 10-K 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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