Command Systems Announces First Quarter Results
Business Wire - April 29, 1999 18:49
FARMINGTON, Conn.--(BUSINESS WIRE)--April 29, 1999--Command Systems, Inc. (NASDAQ: CMND) today announced financial results for its first
quarter ended March 31, 1999. Revenue totaled $6,932,000 compared with revenue of $7,934,000 for the 1998 first quarter. The decline was attributable to diminishing
demand for Year 2000 services.
The Company reported a net loss of $1,215,000 for the quarter ended March 31, 1999, against net income of $455,000 for the comparable 1998 period. Net income
included interest income of $268,000 for the first quarter of 1999.
Basic and diluted earnings per share for the 1999 first quarter were a loss of $.16 versus earnings of $.04 in the 1998 first quarter. Earnings applicable to common
stockholders for March 31, 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 the quarter ended March 31, 1999, increased
over the comparable 1998 period as a result of shares issued in conjunction with the Company's March 12, 1998 initial public offering.
The Company lost $1,483,000 from operations in the quarter compared with earnings from operations of $553,000 in the first quarter of 1998. Operating results were
adversely affected due to pressures arising from low rates of employee utilization in the offshore technology resource center and a less profitable mix of business.
Demand for Year 2000 services is diminishing, and pressure on the Company's margin is continuing; accordingly, the Company's profitability in the second quarter will
be adversely affected.
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.
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