COLUMBIA, Md., Aug. 14 /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 a net loss of $902,000 or $.17
per diluted share for the quarter ended June 30, 2000 versus net income of
$743,000 or $.14 per diluted share for the same period in 1999. Revenue for
the three months ended June 30, 2000 and 1999 totaled $13.3 million and
$18.0 million, respectively.
Year-to-date 2000, the Company incurred a net loss of $366,000 or $.07 per
diluted share versus net income of $1,602,000 or $.31 per diluted share for
the same period in 1999.
Interest significantly increased during the second quarter in the
Company's VirtualPlant(TM) technology and services by major global
pharmaceutical and chemical companies, and the Company continues to invest
heavily in this area. Without this investment in the second quarter, the
Company would have had profitable operations.
The Company continues to work closely with Avantium Technologies, based in
Amsterdam, to develop enabling software and hardware technologies to assist in
high throughput screening for new chemical and pharmaceutical entities, with
the potential to significantly reduce time to market. The Company expects to
release this technology in early 2001. Additionally, during the second
quarter, the Company noted the addition of Akzo Nobel to the list of Avantium
shareholders, along with GSE Systems, Shell International Chemicals,
SmithKline Beecham, venture capital companies S R One, Alpinvest and Generics
Asset Management, and the Universities of Delft, Eindhoven and Twente.
"We are very pleased with the great progress being made with respect to
our VirtualPlant(TM) strategy, both in expressed customer interest and
solution development progress," said Christopher M. Carnavos, CEO.
The Company's Power Simulation business unit operating results continued
to be strong, as the Company maintained its dominant market position in the
nuclear power simulation industry. Utilizing its technical and project
management strengths, the business unit has expanded its focus to the fossil
power market. This resulted in two new contract awards during the quarter and
a number of promising pursuits. The deregulation of the power industry has
provided new opportunities in providing engineering services for analytical
simulators, such as plant modification studies and operating efficiency
improvements for both nuclear and fossil operating utilities.
The Company continues to experience an order slow down in its Process
business unit. This trend appears to be affecting the entire process control
industry. Accordingly, the Company has taken additional steps to reduce costs
in the Process business unit, including a personnel reduction in August.
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 Six months ended
June 30, June 30,
2000 1999 2000 1999
Revenue $13,300 $17,987 $28,424 $35,565
Cost of revenue 10,314 10,483 19,437 21,362
Gross profit 2,986 7,504 8,987 14,203
Operating expenses 4,397 6,307 9,264 11,538
Operating income (loss) (1,411) 1,197 (277) 2,665
Other (income) expense (66) 3 (299) (78)
Income (loss) before
income taxes (1,477) 1,200 (576) 2,587
Provision for (benefit
from) income taxes (575) 457 (210) 985
Net income (loss) $(902) $743 $(366) $ 1,602
Basic earnings (loss)
per common share $(0.17) $0.14 $(0.07) $0.32
Weighted average
shares outstanding
- basic 5,192,794 5,065,688 5,188,534 5,065,688
Diluted earnings
(loss) per
common share $(0.17) $0.14 $(0.07) $0.31
Weighted average shares
outstanding
- diluted 5,192,794 5,274,451 5,188,534 5,246,622
Selected balance sheet data
(in thousands)
June 30, 2000 December 31, 1999
unaudited
Cash and cash equivalents $2,454 $2,695
Current assets $23,419 $25,439
Total assets $42,772 $43,027
Current liabilities $23,818 $16,774
Long-term liabilities $1,750 $9,083
Stockholders' equity $17,204 $17,170
Selected segment information (unaudited)
(in thousands) (in thousands)
Three months ended June 30,
Six months ended June 30,
2000 1999 2000 1999
Process Solutions
Business Unit $5,241 $9,748 $13,205 $19,964
Power Systems
Business Unit $8,059 $8,239 $15,219 $15,601
Consolidated
revenue $13,300 $17,987 $28,424 $35,565
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, 410-772-3588, general info, Maura Gedid, or analyst
info, Susan Garland, both of The Financial Relations Board,
212-661-8030, for GSE Systems
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