COLUMBIA, Md., Aug. 6 /PRNewswire/ -- GSE Systems, Inc. (GSE)
(Amex: GVP), a leading global provider of real time simulation and process
control solutions to the energy and process industries reported a net income
of $468,000 or $.09 per diluted share for the quarter ended June 30, 2001,
compared to a net loss of $902,000 or $.17 per diluted share for the same
period in 2000. Revenue for the three months ended June 30, 2001 and 2000
totaled $11.8 million and $13.3 million, respectively.
Year-to-date 2001, the Company earned a net income of $2.2 million or $.42
per diluted share versus a net loss of $366,000 or $.07 per diluted share for
the same period in 2000.
President and Chief Operating Officer, Jerry Jen said "We are very happy
with the performance of both our businesses especially in these tough economic
times. This is the fourteenth straight quarter of profitability for our Power
Simulation business. Excluding the loss on the sale of our Belgium operation,
this was the fourth quarter in a row that our Process Controls business has
shown positive earnings."
The Process Controls business revenue for the recent quarter was
$4.0 million versus $4.3 million for the same quarter in 2000. However, the
Process Controls Business realized a net operating income of $107,000 versus a
loss of $1.2 million for the same period in 2000. Although revenue was down
compared to last year, the Company turned a profit based on its restructuring
activities. Its Power Simulation business also continues to be profitable
with revenue of $7.8 million versus $8.1 million for second quarter of 2000.
"We expect earnings from our core business to continue to improve
throughout the remainder of the year. We recently held our Thirteenth Annual
User's Conference for Process customers in June, with numerous customers
present. Our customers were excited about our product strategy, and I am
encouraged that capital spending for certain key customers will improve over
the second half of the year. We are continuing to position our products and
services offering to the energy sector to take advantage of the emerging
market dynamics, and are encouraged by the possibilities." concluded Mr. Jen.
New orders for the company for the quarter ended June 30, 2001, were
$9.1 million up 59% from the same quarter last year.
The GSE Systems Q2 2001 conference call is being webcast at
http://www.streetevents.com on Tuesday August 7, at 11:00 am.
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. Its global locations include offices in Japan, and
Sweden. 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, 2000 as
filed with the Securities and Exchange Commission.
GSE SYSTEMS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share and per share data)
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Contract revenue $11,845 $13,300 $24,323 $28,424
Cost of revenue 8,563 10,314 18,069 19,437
Gross profit 3,282 2,986 6,254 8,987
Operating expenses 2,818 4,397 5,999 9,264
Operating income (loss) 464 (1,411) 255 (277)
Other income
(expense)(A) (111) (66) 2,954 (299)
Income (loss) before
taxes 353 (1,477) 3,209 (576)
Provision for income
taxes (115) (575) 1,027 (210)
Net income (loss) $468 $(902) $2,182 $(366)
Basic earnings
(loss) per share $0.09 $(0.17) $0.42 $(0.07)
Weighted average
shares outstanding
- Basic 5,193,527 5,192,794 5,193,527 5,188,534
Diluted earnings
(loss) per share $0.09 $(0.17) $0.42 $(0.07)
Weighted average shares
outstanding
- Diluted 5,252,527 5,192,794 5,221,215 5,188,534
(A)- Other income (expense) for the six months ended June 30, 2001
includes a $3.3 million gain on the sale of the Company's
VirtualPlant business technology and assets.
Selected balance sheet data
(in thousands)
June 30, 2001 December 31, 2000
(Unaudited)
Cash and cash equivalents $607 $1,465
Current assets $18,297 $20,368
Total assets $36,446 $35,949
Current liabilities $14,442 $14,846
Long-term liabilities $11,154 $12,390
Stockholders' equity $10,850 $8,713
Selected segment information
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Process Solutions
Business Unit(B) $4,162 $5,241 $9,476 $13,205
Power Systems
Business Unit $7,683 $8,059 $14,847 $15,219
(B)- Included in the Process Solution Business Unit's revenues for the
three months ended June 30, 2001 and 2000 were revenues for the
divested VirtualPlant business of $507,000 and $4.6 million,
respectively. The 2000 VirtualPlant revenues included $2.9 million
from a software license sold to Avantium International B.V.
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Gill R. Grady, Senior Vice President of GSE
Systems, Inc., +1-410-772-3500; General info, Marilynn Meek,
+1-212-445-8451, or Analysts, Susan Garland, +1-212-445-8458,
both of the Financial Relations Board
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