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Technology Stocks : Command Systems, Inc. (CMND) -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (1897)	4/30/1999 5:04:00 AM
From: Scott Pedigo	Respond to of 1956

Command Systems Announces First Quarter Results Business Wire - April 29, 1999 18:49 FARMINGTON, Conn.--(BUSINESS WIRE)--April 29, 1999--Command Systems, Inc. (NASDAQ: CMND) today announced financial results for its first quarter ended March 31, 1999. Revenue totaled $6,932,000 compared with revenue of $7,934,000 for the 1998 first quarter. The decline was attributable to diminishing demand for Year 2000 services. The Company reported a net loss of $1,215,000 for the quarter ended March 31, 1999, against net income of $455,000 for the comparable 1998 period. Net income included interest income of $268,000 for the first quarter of 1999. Basic and diluted earnings per share for the 1999 first quarter were a loss of $.16 versus earnings of $.04 in the 1998 first quarter. Earnings applicable to common stockholders for March 31, 1998 were affected by preferred stock dividends and accretion. The weighted average number of shares outstanding used in the calculation of basic and diluted earnings per share for the quarter ended March 31, 1999, increased over the comparable 1998 period as a result of shares issued in conjunction with the Company's March 12, 1998 initial public offering. The Company lost $1,483,000 from operations in the quarter compared with earnings from operations of $553,000 in the first quarter of 1998. Operating results were adversely affected due to pressures arising from low rates of employee utilization in the offshore technology resource center and a less profitable mix of business. Demand for Year 2000 services is diminishing, and pressure on the Company's margin is continuing; accordingly, the Company's profitability in the second quarter will be adversely affected. Command Systems, whose main office is in Farmington, Connecticut, provides a wide range of information technology solutions and services, consulting, training and outsourcing to financial services organizations to support their evolving business processes and systems requirements. Its web site is commandsys.com. Statements contained in this document which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. (continued)

To: JDN who wrote (1897)	4/30/1999 5:05:00 AM
From: Scott Pedigo	Respond to of 1956

Command Systems, Inc. Condensed Consolidated Statement of Income (in thousands, except per share data) Three Months Ended March 31, ----------------------------------- 1999 1998 ----------- ----------- Revenue $ 6,932 $ 7,934 Cost of revenue 5,366 5,110 --------- --------- Gross profit 1,566 2,824 Selling, general and administrative expense 2,935 2,157 Amortization of goodwill 114 114 --------- --------- (Loss) income from operations (1,483) 553 Interest income, net 268 6 --------- --------- (Loss) income before provision for income taxes (1,215) 559 Provision for income taxes -- 104 --------- --------- Net (loss) income $ (1,215) $ 455 ========= ========= Preferred stock dividends and accretion $ -- $ 260 ========= ========= (Loss) income applicable to common stockholders $ (1,215) $ 195 ========= ========= (Loss) earnings per share - Basic $ (0.16) $ 0.04 ========= ========= (Loss) earnings per share - Diluted $ (0.16) $ 0.04 ========= ========= Weighted average number of shares outstanding - Basic 7,657 4,877 Weighted average number of shares outstanding - Diluted 7,657 4,938 Condensed Consolidated Balance Sheet (in thousands) March 31, December 31, 1999 1998 ------------ ------------ Current assets Cash, cash equivalents and marketable securities $ 17,447 $ 18,994 Accounts receivable, net 6,749 6,433 Other current assets 996 936 --------- --------- Total current assets 25,192 26,363 Property and equipment, net 2,164 2,283 Other assets 6,850 7,001 --------- --------- Total assets $ 34,206 $ 35,647 ========= ========= Liabilities $ 4,962 $ 5,192 Stockholders' equity 29,244 30,455 --------- --------- Total liabilities and stockholders' equity $ 34,206 $ 35,647 ========= ========= CONTACT: BSMG Worldwide, New York Peter Duda, 212/445-8222

To: JDN who wrote (1897)	4/30/1999 5:36:00 AM
From: Scott Pedigo	Read Replies (1) \| Respond to of 1956

The Company lost $1,483,000 from operations in the quarter compared with earnings from operations of $553,000 in the first quarter of 1998. Operating results were adversely affected due to pressures arising from low rates of employee utilization in the offshore technology resource center and a less profitable mix of business. Demand for Year 2000 services is diminishing, and pressure on the Company's margin is continuing; accordingly, the Company's profitability in the second quarter will be adversely affected. They said what they had to say, in spite of the "silent period", which they've somehow managed to extend from 30 days to several quarters. They're losing money, rather than getting rich on a Y2K bonanza, as many speculative investors had hoped. The revenue had a 13% drop compared to a year ago. The costs of the revenue were about the same - just slightly higher. So even if no new sources of revenue are forthcoming in the short term, if they can get the costs in line with the revenue, they can stem the loss. With $17M cash on hand and $25M total assets, compared to a $1.2M loss in the quarter ($1.5M loss from operations) they are not in danger of going under any time soon. So the big decision has to be whether or not to ditch the India operation. They can cut their losses and presumably get some cash as well, or they can wait out this period of uncertainty. It may be that many companies are holding off on new projects until after they have the Y2K problem comfortably behind them. This they can't be 100% sure of until well into next year. Even if a company's own systems can be proved to be "compliant", they still can't be sure if they'll have trouble with their suppliers or their customers or with a general Y2K-related economic downturn, so they may want to sit on their cash and wait and see. If this phenomenon is in effect, (of which I only speculate, having no evidence), then there could be a pent-up demand released next year, at which point the capacity from the India operation could be useful. In the meantime, I have to marvel at a stock where the shareholders have $3.80 equity for a sub $2 price.