COLUMBIA, Md., May 15 /PRNewswire/ -- GSE Systems, Inc. (Amex: GVP), a
leading global provider of real time simulation and process control solutions
to the energy and process industries, reported net income of $537,000 or $.09
per diluted share for the quarter ended March 31, 2000 versus net income of
$860,000 or $.17 per diluted share for the same period in 1999. Revenue for
the three months ended March 31, 2000 and 1999 totaled $15.1 million and
$17.6 million, respectively.
Included in the first quarter 2000 revenues was $2.9 million from the sale
of VirtualPlant(TM) licenses to Avantium Technologies B.V. (Avantium), in
exchange for an equity interest in Avantium. GSE received an additional order
for $2.9 million for VirtualPlant services in the first quarter from Avantium.
The Power Simulation business unit revenues were healthy and essentially
constant between the two quarters. The process control business continued to
experience a lower order volume due to an industry-wide pattern of decreasing
temporary demand caused by Y2K issues begun in the second half of 1999. This
caused a 22% decrease in first quarter Process revenues as compared to the
prior year and the Company has already taken appropriate cost cutting actions
to remain profitable.
"During the first quarter, we continued to see rapidly expanding interest
in our VirtualPlant(TM) technology and services, which is accelerating our
business plan in this new field," said Christopher M. Carnavos, President and
CEO. "Major global pharmaceutical and chemical companies view
VirtualPlant(TM) as the leading technology and service portfolio necessary to
address key business problems such as time-to-market. This is an emerging
multi-billion dollar market and we are the leader."
GSE's Power Simulation business continues to perform in terms of orders
and revenue, and we expect our orders to improve in our more sluggish controls
business as we introduce exciting new capabilities at our user conference in
June," said Mr. Carnavos.
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 Alabama, Georgia, Louisiana, Maryland, North and South Carolina,
Pennsylvania, and Texas, and its global locations include offices in Belgium,
Japan, Sweden, 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, 1999 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. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share and per share data)
(Unaudited)
Three months ended
March 31,
2000 1999
Revenue $15,124 $17,578
Cost of revenue 9,160 10,879
Gross profit 5,964 6,699
Operating expenses 4,829 5,230
Operating income 1,135 1,469
Other expense (233) (81)
Income before income taxes 902 1,388
Provision for income taxes 365 528
Net income $537 $860
Basic earnings per common share $ 0.10 $ 0.17
Weighted average shares outstanding - basic 5,186,327 5,065,688
Diluted earnings per common share $ 0.09 $ 0.17
Weighted average shares
outstanding - diluted 5,783,381 5,167,936
Selected balance sheet data
(in thousands)
March 31, 2000 Dec. 31, 1999
unaudited
Cash and cash equivalents $2,653 $2,695
Current assets $22,906 $25,439
Total assets $41,747 $43,027
Current liabilities $21,631 $16,774
Long-term liabilities $2,012 $9,083
Stockholders' equity $18,104 $17,170
Selected segment information (unaudited)
(in thousands)
Three months ended March 31,
2000 1999
Process Solutions Business Unit $7,964 $10,216
Power Systems Business Unit $7,160 $7,362
Consolidated revenue $15,124 $17,578
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, Inc., 410-772-3588, or general info, Maura Gedid,
analysts, Susan Jayson, or media info, Marty Gitlin, all of The
Financial Relations Board, 212-661-8030
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