COLUMBIA, Md., April 26 /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 first quarter ended March 31, 1999.
GSE reported pre-tax earnings for the first quarter of 1999 of
$1.4 million, versus a pre-tax loss of $(414,000) for the same period of 1998,
while net income for the first quarter of 1999 was $860,000 or $.17 per share
basic and diluted versus a net loss of $(454,000) or $(.09) per share basic
and diluted in 1998.
For the quarter ended March 31, 1999, contract revenue for the Process
Solutions Business Unit was $10.2 million and contract revenue for the Power
Systems Business Unit was $7.4 million as opposed to $6.9 million for Process
and $5.9 million for Power for the corresponding quarter 1998, a 37% increase.
Contract revenues were $17.6 million for the first quarter 1999 versus
$12.8 million for the same period 1998 on continuing operations.
"This is GSE's third consecutive quarter of operating profitability,"
Christopher M. Carnavos, GSE President commented, "and earnings for the first
quarter 1999 meet our expectations."
GSE Systems, Inc. develops and delivers business and technology solutions
by applying process control, data acquisition 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, metals and water treatment. 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, Korea, Singapore, Sweden, Taiwan,
and United Kingdom. Information about GSE Systems is available via the
Internet's World Wide Web at http://www.gses.com. Information about BatchCAD
Limited is available via GSE Systems Web site or 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.
GSE Systems, Inc.
Selected Financial Data
(In thousands, except share and per share data)
CONDENSED STATEMENTS OF OPERATIONS
Three months ended
March 31
1999 1998
Contract revenue $17,578 $17,454
Cost of revenue 10,879 12,243
Gross Profit 6,699 5,211
Operating expenses 5,230 5,888
Income (loss) from operations 1,469 (677)
Other income (expense) (81) 263
Income (loss) before taxes 1,388 (414)
Provision for (benefit from) income taxes 528 40
Net income $860 $(454)
Basic earnings (loss) per share $0.17 $(0.09)
Weighted average shares outstanding 5,065,688 5,065,688
Diluted earnings (loss) per share $0.17 $(0.09)
Diluted weighted average shares
outstanding 5,167,936 5,065,688
Selected
Balance Sheet Information
March 31
1999 1998
Cash and cash equivalents $1,584 $754
Current assets $30,046 $31,327
Total assets $46,012 $47,383
Current liabilities $25,180 $30,076
Long-term liabilities $2,904 $2,283
Stockholders' equity $17,929 $15,024
Selected
Segment Information
March 31, 1999
Revenue
1999 1998
Process Solutions Business Unit $10,193 $6,907
Power Systems Business Unit $7,361 $5,859
All other $23 $4,688
Total $17,556 $17,454
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,
Marty Gitlin, or analyst info, Elisa Mailman, of The Financial
Relations Board, 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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