Beat estimates (just), and it seems to be getting approval (stock is up 1 1/2 at time of writing).
biz.yahoo.com
Cambridge Technology Partners achieves FY 1998 REVENUE of $612.0 M
EPS of $.92
Fourth Quarter 1998 Revenue Reaches $160.2M; EPS OF $.26
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 4, 1999-- Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ:CATP - news; Cambridge) today
announced increased revenues and net earnings for the year ended December 31, 1998. Revenues for the twelve months of 1998 reached $612.0 million, a 40% increase
compared to revenues of $438.3 million for the same period in 1997. Net income for the year also increased by 50% to $57.7 million, or $.92 per share (diluted) compared
to $38.5 million, or $.63 per share (diluted) for the same period in 1997, excluding business combination costs in each year.
Giving effect to these costs, net income for 1998 was $51.9 million, or $.83 per share (diluted). Business combination costs for the years ended December 31, 1998 and
1997, include $8.4 million or $.09 per share (diluted) for the acquisition of Excell Data Corporation (Excell), and $4.8 million or $.08 per share for the acquisition of Peter
Chadwick Holdings Limited, respectively.
For the quarter ended December 31, 1998, Cambridge posted net revenues of $160.2 million, up 24% from revenues of $128.8 million for the same period in 1997. Net
income for the three months ended December 31, 1998, increased 53% to $16.3 million, or $.26 per share (diluted), compared to $10.6 million, or $.17 per share
(diluted), for the same period in 1997, excluding business combination costs.
Business combination costs for the fourth quarter ended December 31, 1997, include $4.8 million or $.08 per share (diluted) for the acquisition of Peter Chadwick Holdings
Limited.
Performance Highlights - FY 1998
James K. Sims, President and CEO commented on Cambridge's performance, ''Cambridge provided solid revenue and earnings growth for the full year 1998. During
1998, Cambridge served over 700 global clients across all of our service lines. Our top ten clients represented approximately 20% of 1998 revenues. Further, in 1998, our
International and North American revenues continue to grow rapidly, increasing 48% and 36%, respectively. At year-end, approximately 50% of our projects worldwide
contained an Internet or interactive component. In addition, we announced major alliances with key partners during the year, including: Cisco Systems, BroadVision, and
Microsoft. In addition, we expanded our existing partnership with Sun Microsystems. These alliances continue to support our fixed-time/fixed-price, rapid methodologies as
well as serve as an additional business development channel.
''In August, we announced the acquisition of Excell Data Corporation. The Excell acquisition augmented Cambridge's existing Microsoft-centric service capabilities,
expanded our Network Services resources and increased our geographic reach in the domestic Northwest region, a fast-growing market for our services.''
During the year, Cambridge added 1,371 net employees (including Excell). Cambridge also reported an 89% increase in cash, cash equivalents, and short-term investments
at December 31, 1998, totaling $105.0 million.
Performance Highlights - Q4 1998
Mr. Sims continued, ''International revenues represented 34% of total revenues in the fourth quarter, with 41% growth over 1997. North American revenues represented
66% of total revenues in the fourth quarter, with 17% growth over 1997. Additionally, 49% of our total engagements worldwide were derived from existing clients.''
During the fourth quarter, Cambridge began the process of reorganizing its North American Business Unit from a geographic model to a national service lines model. This
reorganization was initiated to better serve Cambridge's clients by providing integrated, best-in-class service offerings. Also during the quarter, Cambridge's proposal
activity for potential engagements across all service lines, representing advancements in the new business development engine. In particular, in North America, the proposal
activity increased over the third quarter adding a number of new Fortune 1000 companies to the client roster ranging from the telecommunications, utility, home
entertainment, financial services, insurance, and pharmaceutical industries.
In the fourth quarter of 1998, Cambridge reported days sales outstanding (DSO) of 78 days, a sequential improvement of 5 days over the reported third quarter DSO and
closer to Cambridge's near-term target of approximately 70-75 days.
1999 Outlook
In the first half of 1999, Cambridge reported it will invest in the service line infrastructure to support the Company's next level of growth. Investments in sales and technical
training, the new managing partner (client relationships) and alliance organizations, field marketing, and project delivery methodologies will be made.
Mr. Sims concluded, ''Our outlook for 1999 remains upbeat. Growth in the full year of 1999 will be driven by client demand in three key areas: information technology
strategy, architecture and infrastructure for solving complex business challenges; effective management of operational change; and the creation of competitive advantages
through electronic commerce solutions.
''Demand for these solutions will be delivered globally through our high-growth service lines including, but not limited to: Cambridge Management Consulting
(change/process management); Customer Management Solutions (sales force automation; call center; Web-enablement); Interactive Solutions (business to business/business
to consumer); and Enterprise Resource Solutions (Web-enablement of packaged applications; supply chain management; e-procurement and middle market applications).''
About Cambridge Technology Partners
Cambridge Technology Partners is a new breed of consulting and systems integration firm. Since its founding in 1991, the company has applied its unique core values to the
consulting and application development markets to fundamentally reinvent the way business and technology solutions are delivered. Working within a fixed-time/fixed-price
model, Cambridge's services span strategic consulting, process innovation, custom and package software deployment (including ERP applications), networking, and training
to rapidly deliver end-to-end business systems that create immediate bottom-line impact for its clients. Cambridge has 53 offices and more than 4,400 employees
worldwide. Cambridge on the Web: ctp.com.
FORWARD-LOOKING STATEMENTS
This Press Release may include forward-looking statements (statements that are not historical facts and relate to future performance) that involve risks and uncertainties,
including statements about future service offerings, client relationships, and Cambridge's sales, marketing and operational capabilities. These forward-looking statements are
subject to risks and uncertainties and the Company's actual future results may differ materially from those stated in any forward-looking statements. Actual results may vary
based on a number of factors, including risks associated with management of growth, acquisitions, attraction and retention of employees, variability of quarterly operating
results, including the effects of the client purchasing patterns due to Year 2000 issues, competitive factors, international operations, and protection of intellectual property.
For additional information concerning risks associated with Cambridge's business and operating results, please see Cambridge's SEC filings, including information (i) under
the heading ''Forward-looking Statements'' in its Form 10-K for the year ended December 31,1997 and Form 10-Q for the first; second; and third quarters of 1998 and
(ii) under the heading ''Risk Factors'' in its Form S-3 filed in September 1998.
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CAMBRIDGE TECHNOLOGY PARTNERS (MASSACHUSETTS), INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
(Unaudited)
Net revenues $160,166 $128,770 $612,041 $438,329
Costs and expenses:
Project personnel 66,604 60,811 272,263 203,928
General and administration 16,096 12,881 66,454 47,445
Sales and marketing 14,123 12,044 56,947 40,668
Other costs 38,362 26,009 126,970 84,582
Business combination costs -- 4,760 8,400 4,760
Total operating expenses 135,185 116,505 531,034 381,383
Income from operations 24,981 12,265 81,007 56,946
Other income, net 196 487 2,097 1,890
Income before income taxes 25,177 12,752 83,104 58,836
Provision for income taxes 8,926 6,920 31,164 25,054
Net income $ 16,251 $ 5,832 $ 51,940 $ 33,782
Basic net income per share $ .28 $ .10 $ .90 $ .62
Diluted net income per share $ .26 $ .09 $ .83 $ .55
Weighted average number of
common shares outstanding 58,770 55,678 58,079 54,632
Weighted average number
of common and common
equivalent shares
outstanding 61,896 61,894 63,301 60,775
Supplemental net income and
diluted per share data:
Net income before business
combination costs $ 16,251 $ 10,592 $ 57,657 $ 38,542
Business combination
costs, net of taxes -- 4,760 5,717 4,760
Net income $ 16,251 $ 5,832 $ 51,940 $ 33,782
Diluted net income per
share before business
combination costs $ .26 $ .17 $ .92 $ .63
Business combination
costs, net of taxes -- .08 .09 .08
Diluted net income
per share $ .26 $ .09 $ .83 $ .55
CAMBRIDGE TECHNOLOGY PARTNERS (MASSACHUSETTS), INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1998 1997
Cash and cash equivalents $ 80,051 $ 39,649
Investments held to maturity 24,918 15,824
Accounts receivable, net 133,583 105,206
Other current assets 46,427 37,876
Total current assets 284,979 198,555
Property and equipment, net 48,255 36,027
Other assets 18,411 7,839
Total assets $351,645 $242,421
Current liabilities $106,990 $ 90,254
Other liabilities 2,505 1,300
Total stockholders' equity 242,150 150,867
Total liabilities and stockholders'
equity $351,645 $242,421 |
