NEW YORK--(BUSINESS WIRE)--Nov. 11, 1999--
.... company's growth reflects value of IT services for
business-critical networks....
Predictive Systems, Inc. (NASDAQ:PRDS), a network consulting firm, today announced financial results for the third quarter that ended September 30, 1999. Revenues for that quarter reached $14.1 million, a 103% increase over revenues for the same period in 1998 of $6.9 million. Revenues for the nine months ended September 30, 1999 were $36.7 million, an increase of 123% over revenue of $16.4 million for the same period in 1998.
"Predictive Systems' strong revenue growth of over 100% reflects the value of bringing network services to new and existing clients that are facing the challenges of doing business in the new Internet economy," said Ron Pettengill, Predictive's chairman and CEO.
Predictive Systems reported a net loss for the quarter ended September 30, 1999 of $628,000, compared with a net loss of $119,000 for the same period in 1998. "As we continue to grow, our operational loss reflects our investments in an internal world-class recruiting organization, coupled with infrastructure investments in our U.S. regional locations and our new European operations to meet the needs of our Fortune 1000 clients worldwide," said Pettengill.
Loss per share for the third quarter of 1999 was $0.06 on 10,389,000 shares, compared with $0.02 on 6,836,000 shares for the third quarter of 1998. Predictive Systems reported a net loss of $811,000 for the nine months ended September 30, 1999, or loss per share of $0.09 on 9,441,000 shares. This compares with a net loss of $856,000 or loss per share of $0.16 on 5,368,000 shares for the nine months ended September 30, 1998.
Predictive Systems, founded in 1995, is a network consulting firm focused on the design, performance, management, and security of complex computing networks. Using its proprietary BusinessFirst(TM) methodology to translate clients' strategic business objectives into sound technology solutions, Predictive Systems demonstrates the business value of technology in measurable terms. Headquartered in New York City, Predictive Systems has regional offices throughout the US. Its international operations are managed from the firm's office in London, UK.
This press release contains statements of a forward-looking nature relating to future events or future financial results of Predictive Systems. Investors are cautioned that such statements are only predictions, and that actual events or results may differ materially. In calculating such statements, investors should specifically consider various factors which could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set forth in Predictive Systems' reports and documents filed from time to time with the Securities and Exchange Commission.
Predictive Systems, the Predictive Systems logo and BusinessFirst are trademarks of Predictive Systems, Inc. All other brands or product names are trademarks or registered trademarks of their respective companies.
PREDICTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30,
1998 1999
(unaudited)
ASSETS
Cash and cash equivalents $ -- $14,424,000
Accounts receivable - net 8,806,000 15,994,000
Other current assets 3,279,000 2,220,000
Total current assets 12,085,000 32,638,000
Property and equipment - net 1,357,000 2,379,000
Intangibles - net -- 4,150,000
Other assets 235,000 273,000
Total assets $13,677,000 $39,440,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 9,720,000 $ 5,612,000
Non-current liabilities 1,231,000 495,000
Mandatory redeemable convertible preferred
stock 700,000 --
Stockholders' equity 2,026,000 33,333,000
Total liabilities and stockholders' equity $13,677,000 $39,440,000
PREDICTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1998 1999 1998 1999
Revenues $ 6,935,000 $ 14,090,000 $ 16,401,000 $ 36,655,000
Cost of revenues 3,537,000 7,304,000 9,154,000 18,581,000
Gross profit 3,398,000 6,786,000 7,247,000 18,074,000
Selling, general
and administrative
expenses 3,386,000 7,495,000 8,459,000 18,602,000
Operating profit
(loss) 12,000 (709,000) (1,212,000) (528,000)
Other income
(expense), net 0 19,000 0 56,000
Interest (expense)
income, net (85,000) 7,000 (139,000) (33,000)
Loss before income
tax provision
(benefit) (73,000) (683,000) (1,351,000) (505,000)
Income tax
provision (benefit) 46,000 (55,000) (495,000) 306,000
Net loss $ (119,000) $ (628,000) $ (856,000) $ (811,000)
Net loss per
share:
Basic and
diluted $ (0.02) $ (0.06) $ (0.16) $ (0.09)
Weighted average
common shares
outstanding: 6,836,000 10,389,000 5,368,000 9,441,000
Basic and diluted
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