Telos Reports Results for Fiscal Year 1998
ASHBURN, Va.--(BUSINESS WIRE)--April 2, 1999--Telos(R) Corporation announces its annual 1998 financial performance.
Revenues for the year ended December 31, 1998 were $207.1 million, a decrease of $46.7 million compared to the year ended December 31, 1997. This decrease in revenue was primarily attributable to the completion of two Immigration and Naturalization Services projects during the second half of 1997, and the sale of the Company's Information Systems division in February 1998. However, this decrease in revenue was partially offset by increases in revenue for Enterworks, Inc., the Company's Web-enabled data integration software and support services subsidiary. For the three months ended December 31, 1998, revenues were $76.1 million, or $2.8 million above revenues for the comparable 1997 period. This increase in revenue is primarily due to orders under the Company's Army/Joint Recruiting Information Support System Blanket Purchase Agreement.
The Company incurred an operating loss of $7.3 million for the year ended December 31, 1998, compared to an operating profit of $7.4 million for the year ended December 31, 1997. For the three months ended December 31, 1998, the Company incurred an operating loss of $1.1 million, as compared to an operating profit of $2.0 million for the comparable 1997 period. These decreases in operating income were principally due to the decreases in revenues noted above, the under absorption of certain infrastructure costs, a less profitable product mix in 1998 on certain projects in the Company's Products Group, and the Company's increased investment in research and development and sales and marketing for its Enterworks subsidiary. However, these decreases in operating income were partially offset by decreases in selling, general and administrative costs, relating principally to the Company's consolidation of certain administrative and support functions.
The Company incurred a net loss of $9.2 million for the year ended December 31, 1998, compared to net income of $1.4 million for the year ended December 31, 1997. For the three months ended December 31, 1998, the Company incurred a net loss of $2.9 million, as compared to net income of $1.5 million for the comparable 1997 period. The net loss for the year ended December 31, 1998 includes the effect of a $5.7 million gain recorded in connection with the sale of the Company's Information Systems division in February 1998. |
