I'm please with these earnings, and stunned by the bolded type. Does this mean the deal was called off? When did that happen? No wonder the "spread" has been all over the place!
Edit: Oh, I see. Aparently, they were in merger talks with somebody else, and those costs accounted for the charge. The FCGI deal is still on. iscg.com
So, that brings us back to why is the spread so volatile?
Integrated Systems Consulting Group, Inc. Announces Third Quarter 1998
Results
WAYNE, Pa., Oct. 22 /PRNewswire/ -- Integrated Systems Consulting Group,
Inc. (NASDAQ:ISCG) announced today that diluted net income per share for the
quarter ended September 30, 1998, increased 36% to $.15 from $.11 for the
third quarter of 1997, before a one-time charge of $292,000 or $.03 per share
after tax. Net income, excluding the one-time charge, was $1,364,000, an
increase of 44% from third quarter 1997 net income of $945,000. Revenues for
the quarter were $16,224,000, up 41% over third quarter 1997 revenues of
$11,478,000.
The one-time charge resulted from costs and expenses associated with the
termination of a potential business combination prior to, and apart from, the
previously announced definitive merger agreement with First Consulting Group,
Inc. (NASDAQ:FCGI).
For the nine months ended September 30, 1998, excluding the one-time
charge, diluted earnings per share were $.40 an increase of 54% from $0.26 for
the nine months of 1997, and net income was $3,569,000, an increase of 52%
over $2,346,000 for the nine months of 1997. Revenues for the nine months
increased 50% to $45,897,000 from $30,576,000 for 1997.
Including the one-time charge, net income for the third quarter and nine
months ended September 30, 1998, was $1,072,000 and $3,277,000, respectively,
and diluted net income per common share was $.12 and $.37, respectively.
David S. Lipson, ISCG Chairman and Chief Executive Officer said, "I am
pleased with our results for the quarter. Our business is healthy and demand
for our services continues to be high."
Integrated Systems Consulting Group, Inc. is an information services
consulting firm with headquarters in Wayne, PA, that provides software
applications development and systems engineering consulting services. ISCG
focuses on providing services to the pharmaceutical and other life science
industries. Its common stock is reported on The Nasdaq Stock Market under the
symbol ISCG.
Integrated Systems Consulting Group, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Unaudited
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
Revenues $16,224 $11,478 $45,897 $30,576
Operating expenses:
Direct costs 9,765 6,777 27,732 17,893
Selling expenses 1,128 785 3,143 2,018
General and
administrative
expenses (Note 1) 3,062 2,374 9,161 6,937
Total operating
expenses (Note 1) 13,955 9,936 40,036 26,848
Income from operations,
excluding one-time
costs ( Note 1) 2,269 1,542 5,861 3,728
Interest income, net 60 88 221 317
Income before
income taxes 2,329 1,630 6,082 4,045
Provision for
income taxes 965 685 2,513 1,699
Net income, excluding
one-time costs ( Note 1) $1,364 $945 $3,569 $2,346
Net income, including
one-time costs $1,072 $945 $3,277 $2,346
Net income per common share,
excluding one-time
cost (Note 1)
Basic $0.17 $0.12 $0.44 $0.30
Diluted $0.15 $0.11 $0.40 $0.26
Net income per common share,
including one-time costs
Basic $0.13 $0.12 $0.41 $0.30
Diluted $0.12 $0.11 $0.37 $0.26
Shares used in computing net
income per common share:
Basic 8,076 7,924 8,030 7,914
Diluted 8,973 8,911 8,976 8,885
Note 1: The three and nine month periods ended September 30, 1998 exclude
one-time costs of $486,000 (after-tax of $292,000 or $.03 per
diluted share) resulting from costs and expenses associated with
the termination of a potential business combination transaction.
Consolidated Condensed Balance Sheets
(in thousands)
September 30
1998 December 31
(Unaudited) 1997
Assets
Current assets:
Cash and short-term
investments $4,025 $9,443
Accounts receivable 15,724 8,937
Prepaid expenses and
other current assets 1,492 491
Total current assets 21,241 18,871
Property and equipment 3,651 3,507
Goodwill and other assets 4,662 1,520
$29,554 $23,898
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and
accrued expenses $3,983 $2,016
Income taxes payable 687 525
Total current liabilities 4,670 2,541
Stockholders' equity 24,884 21,357
$29,554 $23,898
SOURCE Integrated Systems Consulting Group, Inc.
-0- 10/22/98
/CONTACT: David D. Gathman or Donald D. Joseph of Integrated Systems
Consulting Group, 610-989-7000/
/Web site: iscg.com
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