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Technology Stocks : Cognicase (COGI, T.COG) - Integrated IT Solutions -- Ignore unavailable to you. Want to Upgrade?

To: Gilbert Drapeau who wrote (689)	11/15/1999 10:05:00 AM
From: Gilbert Drapeau	Read Replies (1) \| Respond to of 843

Cognicase Reports 96 % Net Earnings Increase for 1999 NOVEMBER 15, 1999 MONTREAL, QUEBEC, CANADA-- /T/ --1999 Revenues Up 145 % to US$144.9 Million-- --Fourth Quarter Revenues Increase 53%, Net Earnings 42%-- --E-business Jumps to 10 % of 1999 Revenues--/T/ COGNICASE Inc. (NASDAQ: "COGI") today announced fourth quarter and full year results for the fiscal year ended September 30, 1999. For 1999, COGNICASE reports 145 % revenue growth to US$144.9 million compared to US$59.1 million in 1998. Net earnings, excluding foreign exchange gains and losses, increased 96 % to US$14.0 million ($0.95 per share on a fully diluted basis) compared to US$7.1 million ($0.57 per share on a fully diluted basis) last year. For the fourth quarter of 1999, revenues increased 53 % to US$37.9 million compared to US$24.7 million in the similar quarter last year. Net earnings, excluding foreign exchange gains and losses, rose 42 % to US$3.7 million ($0.24 per share on a fully diluted basis) from US$2.6 million ($0.20 per share on a fully diluted basis) in the similar 1998 period. Cash earnings, which exclude foreign exchange gains and losses and goodwill amortization, were US$17.4 million ($1.18 per share on a fully diluted basis) for 1999, an increase of 110 % compared to US$8.3 million ($0.67 per share on a fully diluted basis) in 1998. Cash earnings for the fourth quarter of 1999 were US$4.7 million ($0.30 per share on a fully diluted basis) compared to US$3.2 million ($0.25 per share on a fully diluted basis) last year. This is an increase of 46 %. Since goodwill amortization has no impact on cash resources, cash earnings present a more accurate picture of the Company's profitability. "The 1999 results demonstrate clearly that COGNICASE is focused on profitable growth," said Ronald Brisebois, President and Chief Executive Officer. "We have maintained profitability in the upper tier of our industry and strong cash flow. We are very pleased with this performance." Outlook COGNICASE expects the current moratorium on new IT investment observed by many corporate customers to be lifted beginning in 2000 as focus shifts away from Y2K issues. As a result of the current market situation, the Company expects modest revenue growth on a sequential basis during the early part of fiscal 2000. Revenues for the first quarter of fiscal 2000 are forecasted to reach over US$40 million with an expected cash net margin of 8-9 %. Both revenues and margin should improve thereafter. Demand for IT services is expected to rebound strongly as corporations respond to intensifying competitive pressures by allocating increased resources to the implementation of e-business strategies. The Company's marketing focus is to pursue e-business projects and software solutions by leveraging its strong track record and capabilities. "The Internet revolution is profoundly changing the way business is conducted and companies in all sectors increasingly recognize the need to respond with effective e-business solutions," said Mr. Brisebois. "Over the past year, COGNICASE has developed a comprehensive e-business offering based on leading edge know-how and technology. Our competitive position is supported by more than 100 e-commerce projects currently in progress or completed over the past year." COGNICASE has transformed itself into a leading provider of business solutions that leverage information technology, including implementation of turnkey e-business solutions, Application Service Provider (ASP) services, and the re-engineering of existing applications for e-business. For the fourth quarter of 1999, e-business represented 11.1 % of revenues and this proportion is expected to increase significantly in fiscal 2000.