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Technology Stocks : Data Dimensions -- Ignore unavailable to you. Want to Upgrade?

To: Bob Trocchi who wrote (4440)	10/6/1998 12:01:00 PM
From: David Blocher	Read Replies (2) \| Respond to of 4571

Here's the reason for the stock's move today: Data Dimensions Expects Third Quarter Revenue and Earnings to Exceed Consensus Estimates PR Newswire - October 06, 1998 08:48 BELLEVUE, Wash., Oct. 6 /PRNewswire/ -- Data Dimensions, Inc. (DDI) (Nasdaq: DDIM) announced today that as a result of continued strong demand for its information technology (IT) consulting services, earnings per share for the third quarter of 1998 are expected to exceed consensus estimates by approximately 40 percent. The company made the following forward-looking statements based on its current expectations. These statements may differ materially from actual results and are presented based on pro forma results giving effect to the ST Labs acquisition, which closed in the third quarter of 1998 and is being accounted for as a pooling-of-interest transaction. * Revenue for the third quarter of 1998 is expected to increase approximately 90% from third quarter 1997 revenue of $17.6 million. * Third quarter gross margins are expected to be approximately equal to year-to-date gross margins of 43 percent. * Non-recurring charges associated with the acquisition of ST Labs are expected to be approximately $800 thousand. * Expenses in the third quarter of 1998, excluding non-recurring charges, are expected to be approximately 24% of revenue. * The company expects net interest expense to be approximately $50 thousand. "Data Dimensions' business is strong across the board, particularly as related to continued growth in our Knowledge Consulting division, and the integration of ST Labs is progressing faster than anticipated. Further, we see growing interest for our IT outsourcing and quality assurance and testing services. These areas present an enormous opportunity for Data Dimensions, and we expect them to become an increasingly important source of growth in the future," said Larry Martin, chairman and chief executive officer. Martin added, "Based on our current book of business, we expect further revenue and earnings growth in the fourth quarter." About Data Dimensions Data Dimensions, Inc., based in Bellevue, Washington, provides expertise in process management through value added consulting services and related products for the design, implementation, test, and maintenance of enterprise-wide information technology systems. With a staff of more than 800 personnel located in the United States and internationally, Data Dimensions assists Fortune 500 and similar organizations to plan and execute information technology solutions from the mainframe to the desktop. For more information about DDI, its products and services, visit DDI's web site at www.data-dimensions.com. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing, competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release. SOURCE Data Dimensions, Inc. /CONTACT: Jim McLendon, Director of Investor Relations, 425-468-1158, or Investor-Relations@data-dimensions.com, or Fay Lim, Director of Marketing, 425-468-1150, or Fay-Lim@data-dimensions.com, both of Data Dimensions, Inc./ /Web site: data-dimensions.com