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Technology Stocks : Command Systems, Inc. (CMND) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (379)	4/29/1998 10:52:00 PM
From: megazoo	Read Replies (1) \| Respond to of 1956

<In the first quarter, a large component of earnings came from year 2000 work at Bangalore, but the company has chosen to expand other services available at the site, at the expense of turning down some year 2000 work, Volpe said.> is the management's frigging head in the right place. they essentially CHOSE not to be profitable.

To: Sam Citron who wrote (379)	8/2/1998 10:57:00 AM
From: Big Dog	Respond to of 1956

Repost: Apparently the analysts concerns emerged in private calls after the CC: Wednesday April 29, 9:52 pm Eastern Time TALKING POINT/Command Systems down on profit doubt By Huw Jones NEW YORK, April 29 (Reuters) - Command Systems Inc.'s (CMND - news) stock tumbled on Wednesday, as investors worried that the technology solutions provider's refocused Indian operations could pressure margins and not boost its profits as quickly as expected. The company said it was refocusing the company on higher-margin, value-added project work, and margins could be hit during the transitional phase. ''As we build our project management team, without having those new project revenues to absorb the costs, it could have an affect on our margins,'' said Steven Willcox, Command Systems' chief operating officer in a telephone interview. Brokers Volpe Brown Whelan & Co. and Cowen & Co. both cut their ratings on the stock to neutral from a buy on Wednesday. Command Systems posted first quarter earnings after the close on Tuesday, the company's first results since its stock began trading on the Nasdaq in January. Cowen was the lead underwriter on the offering, but was not immediately available for comment. Command earned $0.04 per diluted share compared with a loss of $0.06 in the same quarter last year. Revenues were up 54 percent to $7.93 million. Volpe analysts Christopher Paul and David Gremmels said in a research note that Command's earnings were better-than-expected, but a number of issues surfaced regarding the company's earnings outlook. These issues largely focus on Command's offshore technology resource center in Bangalore, India. Command, employing 400 people worldwide, has failed to secure enough work for its offshore project business, and this will ''seriously disrupt revenue and earnings projections,'' Volpe said. In the first quarter, a large component of earnings came from year 2000 work at Bangalore, but the company has chosen to expand other services available at the site, at the expense of turning down some year 2000 work, Volpe said. Volpe slashed its 1998 earnings per share forecast for Command to $0.23-$0.28 from $0.42 previously, and its 1999 EPS estimate has been lowered to $0.32-$0.37 from $0.61. ''We believe the company is going to grow steadily both in terms of revenue and earnings,'' Willcox said in response to a question. Command is still in the process of refocusing on project work, Willcox said. ''While there has been a lot of proposal activity, we have not closed anything at this point in time,'' Willcox said. Command Systems was formed in 1985 and, up until the early 1990s, its business was focused on staff augmentation or helping companies who need temporary help with information technology solutions. By the first quarter of this year, staff augmentation accounted for only 51 percent of the company's business. The balance was comprised 31 percent from helping companies solve year 2000 problems, 12 percent from hardware and software resale, and just six percent from projects, Willcox said. ''We will continue to grow all our lines of business; it's just that the project piece, which includes the year 2000 work, would be growing at a faster rate,'' Willcox said.