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biz.yahoo.com
Thu Jan 28 DDIM Data Dimensions Reports 1998 Revenues Increase 90 Percent - PR Newswire
Data Dimensions Reports 1998 Revenues Increase 90
Percent
Earnings Up Strongly
BELLEVUE, Wash., Jan. 28 /PRNewswire/ -- Data Dimensions, Inc. (DDI) (Nasdaq: DDIM - news) today announced financial results for the fourth quarter and twelve months ended December 31, 1998.
Revenues for the fiscal year ended December 31, 1998 were $114.5 million, an increase of 90 percent over revenues for the
fiscal year ended December 31, 1997 of $60.4 million. Excluding non-recurring charges in fiscal years 1998 and 1997, net income for 1998 increased to $9.7 million, or $0.72 per diluted share, compared to $1.2 million, or $.09 per diluted share in fiscal 1997. After non-recurring charges of $0.8 million in 1998 and $4.0 million in 1997, net income increased to $9.2 million, or $0.69 per diluted share, compared to a loss of $2.9 million, or $.22 per share in fiscal 1997.
Revenues for the fourth quarter of 1998 were $31.7 million, an 87 percent increase over revenues of $16.9 million in the same quarter of 1997. Net income reached $2.8 million, or $0.21 per diluted share in the fourth quarter of 1998. This compares to a loss of $0.8 million, or $0.06 per diluted share in 1997, excluding non-recurring charges. Including non-recurring charges of $4.0 million in the fourth quarter of 1997, the net loss was $4.8 million, or $0.36 per share.
''1998 was a pivotal year for Data Dimensions,'' said Larry Martin, Data Dimensions' chairman of the board. ''To respond to the increasing need of large organizations for enterprise-wide solutions, we expanded our service offerings, particularly through the acquisition of ST Labs in August, 1998. We also deepened our management structure with the addition of new senior positions, including the appointment of Peter Allen as president and CEO in December. We ended the year with a significantly broadened client base and achieved record revenues and earnings,'' concluded Martin.
Peter Allen, DDI's president and chief executive officer said, ''Data Dimensions is positioned with a remarkably strong knowledge infrastructure, a depth of technical skills, and a suite of products and services that enable us to provide a broad range of Enterprise Integration Solutions -- applications and infrastructure outsourcing, contemporary systems testing, legacy integration and enterprise technology planning.''
Allen continued, ''Building on 1998, we expect growing demand from organizations that increasingly recognize the need to leverage their technology investments by integrating and extending legacy systems and applications with newer technologies to better align their computing environments with business objectives.''
About Data Dimensions
Data Dimensions, Inc. provides expertise in process management through value-added consulting services and related products for the design, implementation, testing and maintenance of enterprise-wide information technology systems. Based in Bellevue, Washington, Data Dimensions is an international company assisting business and government to plan and execute information technology solutions from the mainframe to the desktop. For more information about Data Dimensions, visit the company's Web site at data-dimensions.com.
This press release contains forward-looking statements concerning DDI's current expectations including, future growth, service offerings, and operations. These forward-looking statements are subject to risks and uncertainties and the company's actual results may vary materially depending on various factors such as the overall demand for Information Technology consulting services, the attraction and retention of employees, and the successful management and completion of client projects. For additional information concerning risks associated with DDI's business and operating results, see the company's Form 10K-SB for the most recently ended fiscal year, under the heading, ''Management's Discussion and Analysis of Financial Condition and Results of Operations-Forward Looking Statements and Associated Risks.''
DATA DIMENSIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Month Period Twelve Month Period
Ended December 31, Ended December 31,
1998 1997 1998 1997
Revenue
Knowledge Consulting $25,179 $14,550 $96,310 $48,851
Information Services 4,256 1,873 12,811 7,378
Knowledge Transfer 1,071 (138) 3,128 1,619
International 1,229 663 2,295 2,596
Total revenue 31,735 16,948 114,544 60,444
Direct costs 19,068 10,664 65,957 34,435
Gross margin 12,667 6,284 48,587 26,009
General, administrative
and selling expenses 8,024 7,900 32,476 24,102
Non-recurring items -- 4,024 757 4,024
Income (loss) from
operations 4,643 (5,640) 15,354 (2,117)
Other income (expense) (49) (155) (231) (56)
Earnings before income tax 4,594 (5,795) 15,123 (2,173)
Income tax provision (benefit) 1,744 (1,006) 5,921 700
Net income (loss) $2,850 $(4,789) $9,202 $ (2,873)
Net income (loss) per
share-basic $0.21 $(0.37) $0.69 $(0.22)
Net income (loss) per
share-diluted $0.21 $(0.36) $0.69 $(0.22)
Weighted average shares
outstanding-basic 13,470 13,006 13,347 12,772
Weighted average shares
outstanding-diluted 13,533 13,373 13,412 13,133
DATA DIMENSIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Dec. 31 Dec. 31,
1998 1997
Current assets:
Cash and cash equivalents $776 $4,734
Investment securities available for sale -- 986
Accounts receivable, net 36,876 18,730
Prepaid and other current assets 2,850 1,024
Deferred income taxes 1,140 247
Total current assets 41,642 25,721
Equipment and furniture, net 8,467 4,668
Investment in product development, net 1,016 1,635
Other assets 812 1,696
Total assets $51,937 $33,720
Current debt $-- $2,597
Accounts payable 4,571 3,916
Advance billings 300 1,431
Accrued compensation and commissions 6,157 3,478
Other accrued liabilities 3,067 2,528
Income taxes payable 5,997 --
Dividends payable 229 1,000
Deferred tax liability 797 --
Current portion of notes payable 1,161 287
Total current liabilities 22,279 15,237
Notes payable, net of current obligations -- 491
Capital lease obligations, net of
current portion 1,976 483
Other noncurrent obligations 180 166
Total liabilities 24,435 16,377
Stockholders' equity:
Common stock and additional paid-in capital 24,552 23,323
Treasury stock, at cost (3,034) (2,971)
Retained earnings (deficit) 6,104 (3,099)
Cumulative translation adjustment (120) 90
Total stockholders' equity 27,502 17,343
Total liabilities and stockholders' equity $51,937 $33,720
SOURCE: Data Dimensions, Inc.
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