COLUMBIA, Md., Oct. 8 /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 indicated that it
will report a net loss for the quarter ending September 30, 1999 of
approximately $700,000. The Company plans to release actual third quarter
results on October 22, 1999. The shortfall is due primarily to order
slowdowns in the Process business due to Y2K and secondarily due to increased
investments in the Company's new VirtualPlant(TM) strategy. GSE indicates its
Power business continues to report strong operating results.
"GSE is profitable year-to-date through September and we are seeing a very
exciting positive reaction to our new VirtualPlant(TM) strategy," says
Christopher M. Carnavos, GSE's CEO. "Unfortunately, we are also experiencing
what we believe is a temporary lull in revenue due to process customers
waiting until after the Y2K issue has passed to continue their normal levels
of investment in control system hardware and software upgrades. We continue
to monitor this situation very closely." GSE expects the 4th quarter to
return to profitability and that GSE will be profitable for the year.
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
Kindgom. 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.
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; general info, Doug DeLieto,
media, Marty Gitlin, both of The Financial Relations Board,
212-661-8030
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