Quarterly Operating Income Jumps to $1.2 Million,
Versus Operating Loss of $(689,000)
COLUMBIA, Md., July 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 second quarter ended June 30, 1999.
GSE reported pre-tax earnings of $1.2 million for the second quarter of
1999, versus pre-tax earnings of $4.7 million for the same period of 1998,
while net income for the second quarter of 1999 was $743,000 or $.15 per
share-basic and $.14 per share-diluted versus net income of $2.8 million or
$.55 per share-basic and $.54 per share-diluted in 1998. Second quarter
1998 earnings included a $5.6 million gain on sale of assets relating to
the Erudite business unit. Operating income for second quarter 1999 was
$1.2 million versus an operating loss of $(689,000) for the same period in
1998.
Year to date 1999 pre-tax earnings were $2.6 million, versus pre-tax
earnings of $4.2 million for the same period 1998, while net income for
year to date 1999 was $1.6 million or $.32 per share-basic and $.31 per
share-diluted versus net income of $2.3 million or $.46 per share-basic
and $.45 per share-diluted in 1998. Pre-tax earnings for 1998 year to date
include a $5.6 million gain on the sale referred to above.
Contract revenue totaled $17.9 million for the second quarter 1999 versus
$15.0 million for the same period 1998 for on-going operations. Contract
revenue was $35.6 million 1999 year to date versus contract revenue of $27.8
million 1998 year to date for on-going operations.
"GSE has produced four consecutive quarters of operating income while
continuing to improve revenue in 1999," said Christopher M. Carnavos,
GSE Systems CEO. "For the remainder of 1999, we will focus our efforts on
developing new customer opportunities and furthering our VirtualPlant(TM)
strategy."
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, Sweden, Taiwan, and 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 Six months ended
June 30 June 30
1999 1998 1999 1998
Contract revenue $17,987 $16,722 $35,565 $34,176
Cost of revenue 10,483 12,074 21,362 24,317
Gross Profit 7,504 4,648 14,203 9,859
Operating expenses 6,307 5,337 11,538 11,225
Income (loss) from
operations 1,197 (689) 2,665 (1,366)
Other income (expense) (a) 3 5,347 (78) 5,610
Income before taxes 1,200 4,658 2,587 4,244
Provision for income taxes 457 1,893 985 1,933
Net income $743 $2,765 $1,602 $2,311
Basic earnings per share $0.15 $0.55 $0.32 $0.46
Weighted average shares
outstanding - Basic 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings per
share $0.14 $0.54 $0.31 $0.45
Weighted average shares
outstanding diluted 5,274,451 5,131,851 5,246,622 5,097,869
(a) 1998 other income includes a 5.6 million dollar gain on sale of assets
relating to the Erudite business unit in the second quarter 1998.
Selected
Balance Sheet Information
June 30, December 31,
1999 1998
Cash and cash equivalents $3,425 $2,240
Current assets 28,338 32,362
Total assets 45,452 48,743
Current liabilities 23,347 28,304
Long-term liabilities 3,342 3,350
Stockholders' equity 18,763 17,089
Selected Segment Information
Three Months Ended Six Months Ended
June 30 June 30
Revenue Revenue
1999 1998 1999 1998
Process Solutions
Business Unit $9,748 $7,563 $19,964 $14,470
Power Systems
Business Unit $8,239 $7,443 $15,601 $13,302
All other $-- $1,716 $-- $6,404
$17,987 $16,722 $35,565 $34,176
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., 443-436-7500; or General Info, Doug DeLieto,
Media Info, Marty Gitlin, or Analyst Info, Elisa Mailman,
212-661-8030, of The Financial Relations Board
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