Teknowledge Reports 19th Consecutive Profitable Quarter and Increased E-Commerce Business
[ maybe monday this stock will find some volume?]
PALO ALTO, Calif., April 23 /PRNewswire/ -- Teknowledge Corporation (Nasdaq: TEKC - news) announced today that it had recorded net income of $151,545, or $.03 diluted earnings per share, on revenues of $2,790,644 for the quarter ended March 31, 1999. For the comparable period in 1998, the Company reported net income of $219,807, or $.04 diluted earnings per share, on revenues of $3,069,930. Revenue from government contracts declined slightly due to increased internal investment in developing commercial business in the first quarter of 1999. Teknowledge made progress on its E-Commerce business and won a contract to design and implement a secured Internet web site for a financial service provider. Details of the agreement will remain confidential until the web site is operational. Teknowledge began development work in March and is expected to complete the first phase of the project in June. The contract includes licenses for IBM's Net.Commerce E-Commerce platform, Check Point's Firewall-1 security software, and Teknowledge's Sales Associate(TM) E-Commerce software.
Neil Jacobstein, President and COO, commented: ''Teknowledge is now actively selling and delivering solutions in the E-Commerce arena. We have strengthened our commercial sales team, trained our technical staff to deliver VAR solutions from IBM and Check Point, and continue to invest in delivering the next version of our Sales Associate(TM) software. We are beginning to see these investments pay off in 1999.''
Dr. Frederick Hayes-Roth, Chairman and CEO, stated: ''Teknowledge will continue to provide advanced R&D services to DARPA, NIST, and other government customers, but we see our primary opportunities and growth path in the commercial market. We are now investing in the engine for Teknowledge's future growth. We believe that our core competency in Internet-based knowledge systems will be in increasing demand as the business landscape is reshaped to implement E-Commerce and exploit rapid and widespread access to activated knowledge.''
Teknowledge's core business is capturing, processing, and distributing knowledge on the Internet. The Company provides software component services and products for government and commercial Internet applications. Teknowledge's E-Commerce Systems business sells Teknowledge and 3rd party commercial software and services for selling products on the Internet.
This press release contains forward-looking statements relating to the demand and market acceptance of recently introduced products and service, licensing agreements, new contract opportunities, and strategic assessments that are subject to a high level of uncertainty. All forward-looking statements involve risk and uncertainties, and actual results could differ materially from those set forth in the forward-looking statements contained herein.
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
1999 1998
Revenues $2,791 $3,070
Costs and expenses 2,564 2,867
Operating income 227 203
Nonoperating income 26 24
Income before tax $253 $227
Provision for income tax 101 (1)
Net income 152 228
Diluted net income per share $0.03 $0.04
Shares used in computing net income per share 5,920 5,645
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
(Unaudited) (Audited)
March 31, December 31,
1999 1998
Assets
Cash and cash equivalents $1,924 $2,378
Receivables and unbilled charges 3,067 2,650
Deferred tax asset, short-term 400 400
Capitalized software, net 246 267
Equipment and improvements, net 466 505
Deferred tax asset, long-term 500 500
Total assets $6,603 $6,700
Liabilities and stockholders' equity
Accounts payable $418 $661
Accrued payroll & related liabilities 610 679
Other accrued liabilities 214 268
Stockholders' equity 5,361 5,092
Total liabilities and stockholders' equity $6,603 $6,700
SOURCE: Teknowledge Corporation
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