COLUMBIA, Md., Feb. 24 /PRNewswire/ -- GSE Systems, Inc. (Amex: GVP), a
leading global provider of real time simulation and process control solutions
to the energy, process and manufacturing industries, today announced financial
results for the fourth quarter 1998 and the fiscal year ending December 31,
1998.
GSE reported pre-tax earnings for the fourth quarter of $1.6 million,
versus a pre-tax of $(5.7) million for the same period 1997, while net income
for the fourth quarter 1998 was $1.3 million or $0.25 per share diluted versus
a net of $(4.8) million or $(0.94) per share diluted for the same period 1997.
For the year pre-tax earnings resulted in $2.4 million, versus a pre-tax
of $(11.4) million in 1997. Net income for 1998 was $1.4 million or $0.27 per
share diluted versus a net of $(8.7) million, or $(1.72) per share diluted for
1997.
For the quarter ended December 31, 1998, contract revenue was
$20.4 million as opposed to $20.7 million for the corresponding quarter in
1997. However, included in the quarter ended December 31, 1997 was contract
revenue of $5.0 million for businesses divested in 1998. Therefore the
revenue of "core" business units increased from $15.7 million to
$20.4 million, or 30%.
During 1998, the Company divested GSE Erudite and its Oil & Gas Business
Unit leaving the "core" business units of GSE Power Systems and GSE Process
Solutions. Revenues for "core" business units was $67.4 million for the year
versus $55.5 million for 1997, and 1998 year-end backlog is $52.7 million
versus $39.0 million in 1997. The results of GSE Systems fourth quarter is
their second consecutive quarter of positive operating results.
"Our re-focus back to our core businesses and implementation of
cost-savings programs has returned the company to a solid operating position,"
Christopher M. Carnavos, GSE President, commented. "We continue to look for
opportunities to assist Power and Process companies in solving their business
problems with advanced simulation and control systems, software, and
services."
GSE Systems, Inc., develops and delivers business and technology solutions
by applying process control and simulation software, systems and services to
the energy, process and manufacturing industries worldwide. The Company's
products are used in the following industries: specialty chemical, food and
beverage, petroleum refining, pharmaceutical, fossil and nuclear power
generation, and metals. GSE Systems is headquartered in Columbia, Md., with
offices in Georgia, Louisiana, Maryland, North and South Carolina,
Pennsylvania, and Texas, and its global locations include offices in Belgium,
Japan, Korea, Singapore, Sweden, and Taiwan. Information about GSE Systems is
available via the Internet's World Wide Web at http://www.gses.com.
This news release contains forward-looking statements that involve risks
and uncertainties. The actual future results of GSE Systems may differ
materially due to a number of factors, including but not limited to delays in
introduction of products or enhancements, size and timing of individual
orders, rapid technological changes, market acceptance of new products and
competition. These and other factors are more fully discussed in the
Company's annual report on Form 10-K and other reports as filed with the
Securities and Exchange Commission.
GSE Systems, Inc.
Selected Financial Data
(In thousands, except share and per share data)
CONDENSED STATEMENTS OF OPERATIONS
Three months ended Twelve months ended
December 31, December 31,
1998 1997 1998 1997
Contract revenue $20,400 $20,733 $73,818 $79,711
Cost of revenue 12,704 16,501 49,814 58,326
Gross Profit 7,696 4,232 24,004 21,385
Operating expenses 5,977 8,556 22,113 30,812
Income (loss) from operations 1,719 (4,324) 1,891 (9,427)
Gain (loss) on disposition of assets -- 550
Other income (expense) (104) (1,397) (24) (1,993)
Income (loss) before taxes 1,615 (5,721) 2,417 (11,420)
Provision for (benefit from)
income taxes 361 (950) 1,020 (2,717)
Net income $1,254 $(4,771) $1,397 $(8,703)
Basic earnings (loss) per share $0.25 $(0.94) $0.28 $(1.72)
Weighted average shares
outstanding 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings (loss) per share $0.25 $(0.94) $0.27 $(1.72)
Diluted weighted average shares
outstanding 5,100,572 5,065,688 5,107,428 5,065,688
SELECTED BALANCE SHEET INFORMATION
December 31,
1998 1997
Cash and cash equivalents $2,240 $334
Current assets $31,079 $31,714
Total assets $47,460 $48,362
Current liabilities $28,165 $30,068
Long-term liabilities $2,213 $2,370
Stockholders' equity $17,082 $15,924
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, 443-436-7500; or general info, Doug DeLieto, media
info, Marty Gitlin, or analyst info, Elisa Mailman, 212-661-8030
NOTE TO EDITORS: To receive additional information on GSE
Systems, Inc., via fax at no charge, dial 1-800-PRO-INFO and
enter ticker symbol GVP
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