COLUMBIA, Md., Nov. 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 $869,000 or
$.17 per diluted share for the quarter ended September 30, 2000 versus net
loss of $727,000 or $.14 per diluted share for the same period in 1999.
Revenue for the three months ended September 30, 2000 and 1999 totaled
$13.6 million and $15.5 million, respectively.
Year-to-date 2000, the Company incurred a net loss of $1,237,000 or
$.24 per diluted share versus net income of $875,000 or $.17 per diluted share
for the same period in 1999.
The Company invested approximately $1.9 Million in the VirtualPlant(TM)
technology during the quarter. This investment caused the short-term loss
with respect to the entire company, since both the Power and Process units
were profitable. During the third quarter, a combination of Informatics, Lab
Automation, and Simulation were successfully demonstrated at the Avantium
Technologies Lab in Delft University.
Separately, the company is announcing today a signed letter of intent
whereby Avantium Technologies will acquire certain assets of VirtualPlant(TM)
in exchange for an undisclosed amount of shares in Avantium.
The Company's Power Simulation business unit recently has been awarded
several large projects in the fossil power industry. Additionally, the Power
Simulation business unit has booked projects or simulation system upgrades,
re-hosting, plant computer systems, and plant security systems. Operating
results continued to be strong as the Company maintained its dominant market
position in the energy and power simulation industry.
The Process business unit has seen recent success in booking several key
projects with its core customers. These new projects demonstrate the ongoing
commitment by the entire Process business customer base. After recent
reorganization in the business unit, GSE has seen positive operating results
and expects this trend to continue.
"We are pleased that our Power Simulation business unit continues to show
positive operating results and the restructuring of our Process business has
resulted in a return to profitability," stated Christopher M. Carnavos, CEO of
GSE Systems, Inc. "We are committed to continuing to using our strengths in
simulation and control to meet the needs of the future."
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 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 Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenue $13,694 $15,587 $42,119 $51,152
Cost of revenue 10,022 10,289 29,460 31,651
Gross profit 3,672 5,298 12,659 19,501
Operating expenses 4,921 6,309 14,188 17,847
Operating income (loss) (1,249) (1,011) (1,529) 1,654
Other (income) expense (120) (166) (418) (244)
Income (loss) before income
taxes (1,369) (1,177) (1,947) 1,410
Provision for (benefit from)
income taxes (500) (450) (710) 535
Net income (loss) $(869) $(727) $(1,237) $875
Basic earnings (loss) per
common share $(0.17) $(0.14) $(0.24) $0.17
Weighted average shares
outstanding - basic 5,193,527 5,065,688 5,190,198 5,065,688
Diluted earnings (loss) per
common share $(0.17) $(0.14) $(0.24) $0.17
Weighted average shares
outstanding - diluted 5,193,527 5,065,688 5,190,198 5,239,756
Selected balance sheet data
(in thousands)
September 30, December 31,
1999
unaudited
Cash and cash equivalents $1,694 $2,695
Current assets $22,454 $25,439
Total assets $40,860 $43,027
Current liabilities $23,283 $16,774
Long-term liabilities $1,588 $9,083
Stockholders' equity $15,989 $17,170
Selected segment information (unaudited)
(in thousands) (in thousands)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Process Solutions Business Unit $6,694 $8,151 $19,899 $28,115
Power Systems Business Unit $7,000 $7,436 $22,220 $23,037
Consolidated revenue $13,694 $15,587 $42,119 $51,152
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Christopher M. Carnavos, CEO of GSE Systems,
410-772-3601; or general, Maura Gedid, or analyst, Susan Garland,
212-661-8030, both of The Financial Relations Board
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