OAO Technology Solutions, Inc. Announces 1997 Earnings Up 58% And Revenue Up 46%
February 11, 1998 02:25 PM
GREENBELT, Md., Feb. 11 /PRNewswire/ -- OAO Technology Solutions,
Inc. OAOT , an international provider of a wide range of outsourced
Information Technology (IT) solutions and professional services,
today reported a year-over-year revenue increase of 46%. Revenues for
the year ended December 31, 1997, were $84.7 million, compared to
$57.9 million for the year ended December 31, 1996. Year-over-year
net income increased 58% to $2.9 million, or $0.26 per share
(diluted), compared to $1.8 million, or $0.17 per share (diluted),
for the same period in 1996. Weighted average shares outstanding for
the year ended December 31, 1997, and 1996, were 11.2 million and
10.4 million, respectively.
Revenues for the three months ended December 31,1997, were $24.7
million, compared to $17.6 million for the same period in 1996, an
increase of 41%. Net income was $920,000, or $0.07 per share
(diluted), compared to $645,000, or $0.06 per share (diluted) in the
fourth quarter of 1996, representing a 43% increase in net income.
Weighted average shares outstanding for the fourth quarter of 1997
were 12.5 million, compared to 10.4 million for the same period in
1996.
The Company completed its initial public offering through a rights
offering with Safeguard Scientifics, Inc. SFE on December 4, 1997,
raising $29.3 million in net proceeds. Also during the fourth
quarter, the Company completed its first acquisition, acquiring
certain assets of UniHealth Investment Co., a division of UniHealth,
Inc. This division developed and markets MC400, a software package
designed to help streamline operations of managed care organizations,
and is primarily marketed to the HMO community. The division is now
doing business as OAO Healthcare Solutions, Inc.
In announcing 1997 results, William R. Hill, President and CEO of OAO
Technology Solutions, said, "1997 was a pivotal year for our company.
As a result of the IPO, we are now more strongly positioned to
capitalize upon opportunities to expand our business. Furthermore,
the efficiency with which we integrated our first acquisition
demonstrates our ability and commitment to growing the company. Given
the rapid growth of the IT outsourcing industry, and our own unique
strengths and approach to doing business, we look for 1998 and beyond
to be fruitful years for the Company."
OAO Technology Solutions, Inc. provides a wide range of Information
Technology (IT) solutions and professional services, including the
operation of large-scale megacenter complexes and networks,
distributed systems management, staffing and other IT services. The
Company delivers these solutions and services, generally under long-
term, fixed-price contracts, to Strategic Clients, who are themselves
global providers of IT outsourcing services. The Company works with
its Strategic Clients as part of the IT outsourcing team to provide
services to a wide range of corporate clients, accepting delivery
responsibility for specific functional roles within each outsourcing
engagement.
OAO Technology Solutions, Inc. is a Safeguard Scientifics, Inc.
partnership company. For more information, visit OAO Technology
Solutions on the World-Wide-Web at www.oaot.com.
OAO TECHNOLOGY SOLUTIONS, INC.
Consolidated Statements of Income
(All amounts in thousands except per share amounts.)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudited)
Revenues $24,710 $17,574 $84,666 $57,891
Direct costs 18,972 13,366 65,882 43,896
Gross profit 5,738 4,208 18,784 13,995
Selling, general, and
administrative 4,096 3,081 13,551 10,824
Income from operations 1,642 1,127 5,233 3,171
Interest expense, net
of interest income 260 9 453 46
Income before provision
for income taxes 1,382 1,118 4,780 3,125
Provision for income
taxes 462 473 1,912 1,315
Net income $920 $645 $2,868 $1,810
Diluted earnings per
common share $0.07 $0.06(A) $0.26 $0.17(A)
Basic earnings per
common share $0.08 $0.06(A) $0.27 $0.23(A)
Weighted Average Number
of Shares Outstanding:
Diluted 12,463,572 10,421,880(A) 11,202,171 10,421,880(A)
Basic 11,718,916 10,000,000(A) 10,598,130 7,869,565(A)
(A) Pro Forma Data
SOURCE OAO Technology Solutions, Inc.
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