COLUMBIA, Md., Oct. 22 /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 third quarter ended September 30, 1999.
GSE reported contract revenues of $15.6 million for the third quarter of
1999, versus $19.2 million for the same period of 1998. The reduction in
sales is directly related to our Process control business, which has been
affected by an order slowdown due to Y2K, whereas our Power business continues
to report strong operating results. Operating loss was $1.0 million for the
third quarter of 1999, which reflects increased investments in the Company's
new VirtualPlant(TM) strategy, versus operating income of $1.7 million in
third quarter 1998; while net loss for the third quarter of 1999 was $727,000
or $(.14) per share-basic and diluted versus net loss of $2.2 million or
$(.43) per share-basic and diluted. Third quarter 1998 results included a
$5.0 million loss on sale of assets relating to the Oil & Gas business unit.
Year to date 1999 contract revenues were $51.2 million versus
$53.4 million for the same period 1998. Operating income was $1.7 million for
year-to-date 1999 as compared to $175,000 for year-to-date 1998; while
year-to-date net income for 1999 was $875,000 or $.17 per share-basic and
diluted versus $141,000 for 1998 or $.03 per share-basic and diluted.
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.
GSE Systems, Inc.
Selected Financial Data
(In thousands, except share and per share data)
CONDENSED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Contract revenue $15,587 $19,244 $51,152 $53,418
Cost of revenue 10,289 12,695 31,651 37,012
Gross Profit 5,298 6,549 19,501 16,406
Operating expenses 6,309 4,809 17,847 16,231
Operating
income (loss) (1,011) 1,740 1,654 175
Other income
(expense)(A) (166) (5,186) (244) 625
Income (loss)
before taxes (1,177) (3,446) 1,410 800
Provision for
income taxes (450) (1,276) 535 659
Net income (loss) $(727) $(2,170) $875 $141
Basic earnings
(loss) per share $(0.14) $(0.43) $0.17 $0.03
Weighted average
shares outstanding --
Basic 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings
(loss) per share $(0.14) $(0.43) $0.17 $0.03
Weighted average
shares outstanding --
Diluted 5,237,991 5,065,688 5,239,756 5,219,421
(A) Other income (expense) for the third quarter 1998 includes a
$5.0 million loss on the sale of assets relating to the Oil & Gas
business unit during the third quarter 1998. Year-to-date, the loss
on this sale has been offset by a $5.6 million gain on the sale of
assets relating to the Erudite business unit in the second quarter
1998.
Selected balance sheet data
Sept. 30, Dec. 31,
1999 1998
Cash and cash
equivalents $3,601 $2,240
Current assets $28,509 $32,362
Total assets $46,391 $48,743
Current liabilities $25,071 $28,304
Long-term liabilities $3,179 $3,350
Stockholders' equity $18,141 $17,089
Selected segment information
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Process Solutions
Business Unit $8,151 $11,669 $28,115 $26,137
Power Systems
Business Unit $7,436 $7,575 $23,037 $20,877
All Other $-- $-- $-- $6,404
$15,587 $19,244 $51,152 $53,418
SOURCE GSE Systems
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Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, 443-436-7500; or General, Doug DeLieto, or Media,
Marty Gitlin, both of The Financial Relations Board, 212-661-8030
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