COLUMBIA, Md., Nov. 12 /PRNewswire/ -- GSE Systems, Inc. (Nasdaq: 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 the third quarter ended September 30, 1998.
GSE reported a pre-tax loss for the quarter of $3.4 million which was
attributable to a $5.0 million pre-tax loss from the disposition of
substantially all of the assets of its Oil & Gas business unit. The pre-tax
income, before the inclusion of the loss on the disposition, would have been
$1.6 million. Net income for the third quarter, excluding the loss from the
disposition of the Oil & Gas assets, would have amounted to $1.0 million, or
$.20 per share basic and $.19 per share diluted. The actual third quarter
loss amounted to $2.2 million, or $(.43) per share versus a net loss of
$0.9 million, or $(.18) per share in the third quarter of 1997.
Net income for the first nine months of 1998 was $141,000 or $.03 per
share versus a net loss of $3.9 million, or $(.78) per share for the same
period last year. Net income excluding the operating losses and the loss on
the disposition of the Oil & Gas business unit assets for the nine months
ended September 30, 1998 would have amounted to $4.0 million, or $.80 per
share basic and $.77 per share diluted. Per share amounts represent basic and
diluted amounts, unless stated otherwise.
GSE Systems reported operating income for the third quarter of 1998 of
$1.7 million versus an operating loss of $1.1 million for the same period in
1997.
Operating income for the nine months ended September 30, 1998 amounted to
$175,000 versus a loss of $5.1 million for the same period in 1997. Excluding
the operating losses of the Oil & Gas business unit, operating income would
have amounted to $1.3 million for the nine months ended September 30, 1998.
For the quarter and nine months, revenues amounted to $19.2 million and
$53.4 million, respectively, versus revenues of $19.0 million and
$58.9 million for the comparable periods last year, respectively.
Christopher M. Carnavos, GSE President, commented, "We are quite pleased
that GSE's Power Simulation and Process Automation Businesses continue to
provide solid operating results and growth, and our customers continue to view
GSE Systems as a leader in the markets we serve. Earlier today we announced
the disposition of the Company's Oil & Gas Business Unit, which virtually
completes GSE's restructuring initiatives, and enables us to focus on building
and improving our core businesses."
GSE Systems, Inc., develops and delivers business and technology solutions
by applying process control 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 and metals. GSE Systems is headquartered in Columbia, Md., with
offices in Georgia, Louisiana, Maryland, North and South 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
other reports as filed with the Securities and Exchange Commission.
GSE Systems, Inc.
Selected Financial Data
(In thousands, except share and per share data)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Contract revenue $19,244 $19,021 $53,418 $58,978
Gross Profit 6,549 5,494 16,406 17,153
Operating expenses 4,809 6,518 16,231 22,256
Income (loss) from
operations 1,740 (1,024) 175 (5,103)
Gain (loss) on disposition
of assets (5,025) 550
Other income (expense) (161) (124) 75 (596)
Income (loss)
before taxes (3,446) (1,148) 800 (5,699)
Provision for
(benefit from)
income taxes (1,276) (242) 659 (1,767)
Net income $(2,170) $(906) $141 $(3,932)
Basic earnings (loss)
per share $(0.43) $(0.18) $0.03 $(0.78)
Weighted average
shares outstanding 5,065,688 5,065,688 5,065,688 5,065,688
Diluted earnings
(loss) per share $(0.43) $(0.20) $0.03 $(0.78)
Diluted weighted
average shares
outstanding 5,065,688 5,065,688 5,219,421 5,065,688
Selected Balance Sheet Information
(Unaudited)
June 30, December 31,
1998 1997
Cash and cash equivalents $1,937 $334
Current assets $29,939 $31,714
Total assets $45,514 $48,362
Current liabilities $27,244 $30,068
Long-term liabilities $2,278 $2,370
Stockholders' equity $15,992 $15,924
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Brian K. Southern, Senior Vice President of
GSE Systems, 410-772-3600; or Doug DeLieto, general info., Marty
Gitlin, media info., or Klea Theoharis, analyst info.,
212-661-8030, all 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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