Paramount Financial Corporation Announces First Quarter Results
May 12, 1998 10:53 AM
JERICHO, N.Y., May 12 /PRNewswire/ -- Paramount Financial Corporation PARA today announced results for the three months ended March 31, 1998.
The Company reported a consolidated net loss of $33,000 for the first quarter of 1998. This represents a significant improvement over the fourth quarter of 1997 for which the Company reported a net loss of $422,000. For the three months ended March 31, 1997, the Company reported net income of $71,760. The results for the three months ended March 31, 1998 include the Company's two wholly owned subsidiaries, Paratech Resources, Inc. and Deltaforce Personnel Services, Inc. (which the Company acquired in January of 1998). Although Paratech was in existence during the quarter ended March 1997, it did not make as significant a contribution to the Company's gross revenue, expenses or results from operations for that period as it did during the first quarter of 1998. In addition, the Company's results continue to be subject to quarterly fluctuations based on the nature and timing of particular sales and lease transactions.
Total revenue for the first quarter of 1998 was $16.2 million, up 300% from the previous year. The increase in revenue from 1997 to 1998 is a result of the Company's re-marketing efforts with respect to its lease portfolio and the sales at Paratech and Deltaforce.
According to Glenn Nortman, Chief Executive of Paramount, "During the first quarter of 1998, we continued with our long term diversification and growth plans at Paramount. This included the acquisition of Deltaforce, and the ongoing expansion of Paratech. These two companies, when combined with our core leasing operations, provide us with a significant base of products and services to offer to a growing list of clients."
Paramount Financial Corporation is a comprehensive asset management and business solution provider, offering customers a wide range of integrated services, including lease finance, information technology consulting, network design and implementation and staffing services. The Company was formed in 1991 and contains two wholly owned subsidiaries, Paratech Resources, Inc. and as of January 1998, Deltaforce Personnel Services, Inc. The Company's stock is traded on the Nasdaq stock exchange under the symbol PARA.
Statements contained in this press release which are not historical facts are forward-looking statements. The forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein contain a number of risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the specific factors impacting the Company's business, including increased competition; the availability of computer equipment; the ability of the Company to expand its operations and attract and retain qualified sales representatives experienced in the purchase, sale and lease of new and used computer equipment; technological obsolescence of the Company's portfolio of computer equipment; and general economic conditions.
PARAMOUNT FINANCIAL CORPORATION
SUMMARY OF OPERATIONS
THREE MONTHS ENDED MARCH 31,
1998 1997
Sales revenue $14,481,462 $936,239
Lease revenue 1,506,328 2,609,347
Fee, interest and
other income 219,927 500,875
Total revenues 16,207,717 4,046,461
Cost of sales 13,788,191 775,144
Lease expense 1,443,175 2,449,082
Selling, general and
administrative 1,031,907 702,636
Total cost and expenses 16,263,273 3,926,862
Income (Loss) before
provision for income taxes (55,556) 119,599
Provision (Benefit) for
income taxes (22,222) 47,839
Net income (Loss) $(33,334) $71,760
Income (Loss) per share $(0.00) $0.01
Weighted average
common shares outstanding 7,914,000 7,990,000
SOURCE Paramount Financial Corporation
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