COLUMBIA, Md., Aug 13 /PRNewswire/ -- GSE Systems, Inc. (Nasdaq National
Market: GSES), a leading global provider of real time simulation and process
control solutions to the energy, process and manufacturing industries, today
announced financial results for second quarter ending June 30, 1998.
GSE Systems reported net income of $2.8 million versus a net loss of $1.0
million in the second quarter of 1997, and net income for the first six months
of 1998 of $2.3 million versus a net loss of $3.0 million for the same period
last year. The loss from operations for the second quarter of 1998 amounted to
$689,000 versus $1.5 million for the same period in 1997. The income for the
second quarter of 1998 was aided by the sale of substantially all of the
assets of GSE Erudite Software, which resulted in a gain of $5.6 million,
prior to related taxes.
Net income for the second quarter and six months ended June 30, 1998
amounted to $0.55 and $0.46 basic earnings per share, respectively, compared
to a basic loss per share of $0.20 and $0.60 for the same periods last year.
For the quarter and six months, revenues amounted to $16.7 million and
$34.2 million, respectively, versus revenues of $20.6 million and $40.0
million for the comparable periods last year, respectively.
"Despite the operating loss, our results were on track with our
expectations. In Q2, our backlog jumped to $41.8 million boosted by a strong
orders performance in our Process business. As a result, we expect to
continue to improve our results in the second half of 1998", said Chris
Carnavos, President of GSE Systems.
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, oil and gas, pharmaceutical,
fossil and nuclear power generation, metals and water treatment. GSE Systems
is headquartered in Columbia, Md. with offices in Georgia, Louisiana,
Maryland, North Carolina, Pennsylvania, and Texas, and its global locations
include offices in Belgium, Japan, Korea, Singapore, Sweden, and Taiwan.
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, 1997 and 2nd
Quarter Form 10-Q for the period ended June 30, 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 GSES.
GSE Systems, Inc.
Selected Financial Data
(in thousands, except share and per share data)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Contract revenue $ 16,722 $ 20,630 $ 34,176 $ 39,957
Gross Profit 4,648 6,095 9,859 11,659
Operating expenses 5,337 7,572 11,225 15,738
Loss from operations (689) (1,477) (1,366) (4,079)
Gain on sale of assets 5,575 -- 5,575 --
Other income (expense) (228) (75) 35 (472)
Income (loss) before taxes 4,658 (1,552) 4,244 (4,551)
Provision for (benefit from)
income taxes 1,893 (515) 1,933 (1,525)
Net income $ 2,765 $ (1,037) $ 2,311 $(3,026)
Basic earnings (loss) per share $ 0.55 $ (0.20) $ 0.46 $ (0.60)
Weighted average shares
outstanding 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings (loss)
per share $ 0.54 $ (0.20) $ 0.45 (0.60)
Diluted weighted average
shares outstanding 5,131,851 5,065,688 5,097,869 5,065,688
SELECTED BALANCE SHEET INFORMATION
(Unaudited)
June 30, December 31,
1998 1997
Cash and cash equivalents $ 3,000 $ 334
Current assets $ 26,711 $ 31,714
Total assets $ 42,663 $ 48,362
Current liabilities $ 22,096 $ 30,068
Long-term liabilities $ 2,037 $ 2,370
Stockholders' equity $ 18,530 $ 15,924
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Chris Carnavos, President of GSE Systems,
410-312-3600; or General, Doug DeLieto, or Media, Marty Gitlin,
212-661-8030, both of The Financial Relations Board
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 GSES
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