LGS Posts Strong Increases in Revenue and Profit for
Third Quarter
lgs.com
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MONTREAL, FEBRUARY 16, 1999, QUEBEC--LGS Group Inc. (NASDAQ: LGSAF) announces significantly higher revenue and profit for the third quarter ended December 31, 1998. Consolidated revenue for the quarter
totalled $59,469,000, an increase of 72 percent over revenue of
$34,606,000 for the same period last year. Net profit for the
quarter reached $2,408,000, which is 251 percent higher than the
$961,000 registered last year. Earnings per share stood at $0.193
in the quarter compared to $0.10 last year.
For the first nine months of the year, revenue amounted to
$160,026,000, an improvement of 76 percent over last year's
$90,828,000. Net profit rose by 186 percent, to $6,334,000, or
$0.555 per share, substantially higher than the $2,213,000 or
$0.23 per share of a year ago.
Earnings per share under US generally accepted accounting
principles for the Quarter are $0.21 compared to $0.12 last year
and $0.60 for the nine months compared to $0.09 in 1997.
"We are delighted with these results, said Andre Gauthier, Senior
Executive Vice President at LGS, adding that it is obvious that
LGS is able to take full advantage of the buoyancy of the IT
market". "During the quarter, we acquired CallPro Canada Inc., a
Toronto- based company specialized in call centres, voice
messaging and electronic customer care, in order to firmly
establish our leadership as a major provider of E-Commerce
solutions", he added. The CallPro acquisition, with an annual run
rate of $16 million, is expected to contribute more than $4
million to revenue during the 4th quarter.
Additionally, LGS' specialized practices' share increased
significantly, accounting for more than half of LGS revenue for
the first time and stood at 73.5 percent of revenue for the nine
months. Y2K-related work continued to add substantially to
revenue, as several clients raised their requirements beyond what
was originally planned. At December 31st, the Y2K backlog stood
at $63 million. So far, many of LGS' new Y2K clients have given
the company mandates not related to Year 2000 compliance.
Canadian operations experienced strong revenue and profit
increases, while European activities also generated strong revenue
growth ending the quarter close to the break-even point. During
the quarter, LGS also decided to implement internally an ERP
(Enterprise Resource Planning) information management system in
order to leverage the rapid expansion of its business.
LGS Group Inc. (LGS.A at ME, LGSAF at NASDAQ) is one of Canada's
largest information technology consulting firms specializing in
management and systems integration. With annual sales exceeding
$134 million in the last financial year and $160 million for the
current nine months, LGS employs more than 2,200 professionals in
18 offices in Canada and in Europe. The company is active in most
of the private and public sectors.
This release may contain forward-looking statements that involve
risks and uncertainties which might cause the actual results to
differ materially from those projected. Potential risks and
uncertainties include the ability to procure, properly price,
retain, and successfully complete projects, the availability of
technical personnel, and competition. These risks and
uncertainties are discussed under the heading "Risk Management" in
the Company's Annual Report. |
