COLUMBIA, Md., Feb. 29 /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, reported net income of
$101,000 or $.02 per diluted share for the year ended December 31,1999 versus
net income of $1.4 million or $.27 per diluted share for the prior year
period.
The Company made substantial investments in its VirtualPlant(TM) strategy
during 1999. VirtualPlant(TM) is a suite of products and services that
leverages GSE's expertise in simulation and automation to enable customers to
reduce time-to-market, improve overall product quality and improve operating
flexibility. In addition, during the second half of 1999, the Company's
Process Business Unit experienced an order slowdown as customers postponed
additional investments in their process control systems, pending the
resolution of Y2K concerns. For the quarter ended December 31, 1999, the net
loss was $772,000 or $(.15) per diluted share versus net income of
$1.3 million or $.25 per diluted share for the prior year period. During the
quarter, contract revenue was $15.5 million as compared to $20.4 million for
the fourth quarter of 1998. For the year, contract revenue dropped 1% to
$66.7 million in 1999 from $67.4 million in 1998 (excluding the sale of assets
made in 1998).
"We are happy with our progress in 1999 with respect to our
VirtualPlant(TM) vision -- especially the recently announced Avantium
Technologies partnership, which has tremendous growth potential for the
Company," said Christopher M. Carnavos, President and CEO. "During 1999 our
Power unit performed well."
The VirtualPlant(TM) vision is gaining acceptance and the Company's first
quarter 2000 results will be significantly and positively impacted by an order
received from Avantium Technologies," said Mr. Carnavos. "We expect our
Process business to improve in 2000 as the market recovers from Y2K-related
expenditure freezes and returns to a more normal economic environment," Mr.
Carnavos concluded.
The Company noted that the Avantium Technologies informatics strategy,
designed by GSE in collaboration with Avantium partners, will employ all of
GSE's process control and simulation portfolio including D/3 DCS(TM),
VPBatch(TM), SimSuite Pro(TM), and BatchCAD(TM) and will provide the basis for
a unique combination of simulation-enhanced product discovery and deployment
that takes into account downstream operating characteristics and constraints.
GSE Systems, Inc. develops and delivers business and technology solutions
by applying process control, 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, and fossil and nuclear power
generation. GSE Systems is headquartered in Columbia, Maryland with offices
in Georgia, Louisiana, Maryland, North and South Carolina, Pennsylvania, and
Texas, and its global locations include offices in Belgium, Japan, Sweden,
Taiwan, and the United Kingdom. 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 for the year ended December 31, 1998 as
filed with the Securities and Exchange Commission.
To receive additional information on GSE Systems, Inc., via fax at no
charge, dial 1-800-PRO-INFO and enter ticker symbol GVP.
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,
1999 1998 1999 1998
Contract revenue $15,547 $20,400 $66,699 $73,818
Cost of revenue 9,977 12,704 41,629 49,814
Gross profit 5,570 7,696 25,070 24,004
Operating expenses 6,479 5,977 24,326 22,113
Operating income (loss) (909) 1,719 744 1,891
Other income (expense)(A) (165) (104) (410) 526
Income (loss) before taxes (1,074) 1,615 334 2,417
Provision for (benefit from)
income taxes (302) 361 233 1,020
Net income (loss) $(772) $1,254 $101 $1,397
Basic earnings (loss) per
share $(0.15) $0.25 $0.02 $0.28
Weighted average shares
outstanding - Basic 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings (loss)
per share $(0.15) $0.25 $0.02 $0.27
Weighted average shares
outstanding - Diluted 5,065,688 5,100,572 5,351,474 5,107,428
(A) Other income (expense) for the year ended December 31, 1998 includes
a $5.0 million loss on the sale of assets relating to the Oil & Gas
business unit during the third quarter 1998, offset by a $5.6 million
gain on the sale of assets relating to the Erudite business unit in
the second quarter 1998.
Selected balance sheet data
December 31, 1999 December 31, 1998
Cash and cash equivalents $2,695 $2,240
Current assets $25,919 $32,362
Total assets $43,027 $48,743
Current liabilities $22,988 $28,304
Long-term liabilities $2,868 $3,350
Stockholders' equity $17,171 $17,089
Selected segment information
Three months ended Twelve months ended
December 31, December 31,
1999 1998 1999 1998
Process Solutions Business
Unit $6,523 $10,347 $34,638 $36,484
Power Systems Business
Unit $9,024 $10,053 $32,061 $30,930
All Other $-- $-- $-- $6,404
$15,547 $20,400 $66,699 $73,818
SOURCE GSE Systems, Inc.
 back to top
Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, Inc., 443-436-7500, or general, Doug DeLieto,
analysts, Susan Jayson, or media, Marty Gitlin, all of The
Financial Relations Board, 212-661-8030
|
