INSS Upside Earnings Alert: 3Q 13c; First Call 11c
Analysts surveyed: 8
The company's earnings figure is on a diluted basis. First Call assumes earnings estimates from analysts are on a diluted basis.
"Dow Jones News Service"
"Copyright(c) 1998, Dow Jones & Company, Inc."
International Network Services Announces Third Quarter Results With a 103% Increase in Earnings and 71% Increase in Revenue
SUNNYVALE, Calif. -- International Network Services (Nasdaq: INSS), today announced record revenue and net income for the third quarter ended March 31, 1998. Revenue for the third quarter reached $45.2 million, a 71% increase from revenue of $26.5 million for the same period a year ago. Net income for the quarter increased 103% to $4.3 million, or $.13 per share, compared to $2.1 million, or $.06 per share a year ago.
Revenue for the first nine months of fiscal 1998 reached $117.2 million, a 70% increase from revenue of $68.8 million for the first nine months of fiscal 1997. Net income for the first nine months increased 113% to $11.0 million, or $.32 per share, compared to $5.1 million, or $.16 per share a year ago.
"Demand for our services continued to be strong throughout the third quarter," stated Don McKinney, Chief Executive Officer. "Our clients are aggressively expanding the use of network centric business applications to support their major business initiatives."
John Drew, President and Chief Operating Officer added, "We continue to attract and retain some of the best and brightest engineers in the industry. We added 161 new employees during the quarter and added 62 new clients to our blue chip client list. The quality and value of the network solutions that we provide to our clients continues to be compelling and competitive in this rapidly growing market."
International Network Services (INS) is a global provider of solutions for complex enterprise networks. INS provides professional services for the full life cycle of a network, including planning, design, implementation, operations and optimization, and maintains expertise in the most complex network technologies and multi-vendor environments. INS also provides solutions for certain repetitive network management tasks, such as network monitoring and network performance reporting. As of March 31, 1998, INS had 1,169 employees and provided service from 32 locations. INS' headquarters are located at 1213 Innsbruck Drive, Sunnyvale, CA 94089. The INS Web site is located at ins.com. INS is a public company, trading under the Nasdaq symbol INSS.
INTERNATIONAL NETWORK SERVICES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
For the Quarter Ended For the Nine Months
March 31, Ended March 31,
1998 1997 1998 1997
Revenue $45,241 $26,539 $117,220 $68,764
Operating expenses
Professional personnel 19,989 12,366 52,753 31,257
Sales and marketing 6,280 3,950 16,163 10,197
General and
administrative 5,092 3,520 13,266 9,712
Other costs 7,217 3,568 18,149 9,870
Total operating
expenses 38,578 23,404 100,331 61,036
Income from operations 6,663 3,135 16,889 7,728
Interest and other, net 531 350 1,361 704
Income before
income taxes 7,194 3,485 18,250 8,432
Provision for
income taxes 2,874 1,359 7,291 3,289
Net income $4,320 $2,126 $10,959 $5,143
Diluted net income
per share $0.13 $0.06 $0.32 $0.16
Shares used to compute
diluted net income
per share 34,417 33,687 34,008 32,851
Basic net income
per share $0.14 $0.07 $0.35 $0.22
Shares used to compute
basic net income
per share 31,637 29,757 31,225 23,278
INTERNATIONAL NETWORK SERVICES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, 1998 June 30, 1997
ASSETS
Current assets:
Cash and investments $43,152 $31,530
Accounts receivable 40,728 23,949
Deferred income taxes 1,150 1,150
Prepaid expenses
and other assets 2,016 2,991
Total current assets 87,046 59,620
Property and equipment, net 9,080 8,073
Deferred income
taxes, noncurrent 803 803
Long-term investments 5,759 9,240
Total assets $102,688 $77,736
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,873 $3,208
Accrued expenses 12,493 7,736
Income taxes payable 2,196 --
Deferred revenue 2,296 554
Total current liabilities 20,858 11,498
Total shareholders' equity 81,830 66,238
Total liabilities
and shareholders' equity $102,688 $77,736
/CONTACT: Kevin Laughlin, Vice President, CFO of International Network
Services, 408-542-0100/
"Copyright(c) 1998, PR Newswire"
"Provided by Dow Jones & Company, Inc." |
