COLUMBIA, Md., Aug. 7 /PRNewswire/ -- GSE Systems, Inc.
(Nasdaq-NNM: GSES), a leading global provider of integrated enterprise
software and information solutions to the energy, process and manufacturing
industries, today announced financial results for the quarter ended June 30,
1997.
GSE Systems experienced a net loss of $1,037,000 versus net income of
$426,000 in the second quarter of 1996. This second quarter loss amounted to
$0.20 per share compared to net income per share of $0.08 last year (both per
share calculations based on approximately 5.1 million weighted average shares
outstanding). For the quarter, revenues amounted to $20.6 million versus
$26.2 million in the comparable period last year.
For the first six months of 1997, the net loss amounted to $3.0 million,
compared to net income of $1.5 million in the first half of 1996. The first
half loss amounted to $0.60 per share compared to net income per share of
$0.30 last year (both calculations based on comparable shares outstanding).
For the first half of 1997, revenues amounted to $40.0 million versus
$48.5 million in the comparable period last year. Included in this year's
first half results was a one time severance charge of $1.3 million before tax
for a restructuring plan that was approved at the end of the first quarter and
implemented in the second quarter. Had this severance charge not been taken,
the first half loss would have been $0.41 per share.
"The second quarter showed a slight improvement over the first quarter in
terms of increased revenue and a reduced loss," said Jerry Feldman, Chairman
of GSE Systems. "We are beginning to see the benefits of the restructuring
that was implemented in the latter part of the second quarter. We believe
that each of our three business groups -- Simulation, Automation and
Business Systems -- have stabilized, with improved prospects for the future.
We are realizing gains from our renewed emphasis on cost control and we are
starting to see new contract awards help grow our revenues."
The Company's products are used in over 700 applications, representing
over 250 customers in 30 countries, in the following industries: specialty
chemical, food & beverage, petroleum refining, oil & gas, pharmaceutical,
fossil and nuclear power generation, metals, electrical distribution
and water treatment. GSE Systems is headquartered in Columbia, Maryland with
offices in Augusta, GA, Baton Rouge, LA, Houston, TX, Phoenix, AZ, Pittsburgh,
PA, Salt Lake City, UT and Shelby, NC, and its global operations include
offices in Belgium, Japan, Korea, Singapore, Sweden, and Taiwan.
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.
To receive additional information on GSE Systems, Inc., via fax at no
charge, dial 1-800-PRO-INFO and enter #178 or ticker symbol GSES.
GSE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three months Three months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
Contract revenue $20,630 $26,168 $39,957 $48,471
Cost of revenue 14,535 17,898 28,298 32,597
Gross profit 6,095 8,270 11,659 15,874
Operating expenses:
Selling, general and
administrative 6,940 5,986 13,189 11,450
Depreciation and
amortization 632 511 1,200 990
Business combination costs -- 1,105 -- 1,105
Employee severance
and termination costs -- -- 1,349 --
Total operating expenses 7,572 7,602 15,738 13,545
Operating (loss) income (1,477) 668 (4,079) 2,329
Interest expense 172 115 359 254
Other expense (income) (97) (103) 113 (277)
(Loss) income before
income taxes (1,552) 656 (4,551) 2,352
(Benefit from) provision
for income taxes (515) 230 (1,525) 835
Net (loss) income $(1,037) $(426) $(3,026) $1,517
(Loss) earnings per
common share $(0.20) $0.08 $(0.60) $0.30
Weighted average common
shares outstanding 5,065,700 5,087,000 5,065,700 5,082,000
The accompanying notes are an integral part of these condensed
consolidated financial statements.
GSE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1997 1996
(in thousands - unaudited)
Cash and cash equivalents $ 852 $ 2,450
Contract receivables 26,217 27,457
Other current assets 7,071 7,693
Total current assets 34,139 37,600
Property and equipment,
net 5,285 5,318
Software development
costs, net 7,083 5,176
Goodwill and other
intangible assets, net 1,970 2,059
Other assets 2,217 853
Total assets $ 50,694 $ 51,006
Total current
liabilities $ 27,536 $ 23,733
Notes payable 176 202
Obligations under
capital lease 300 420
Billings in excess of
revenues earned -- 803
Other liabilities 1,188 1,155
Stockholders' equity 21,494 24,693
Total liabilities &
stockholders' equity $ 50,694 $ 51,006
SOURCE GSE Systems, Inc.
 back to top
CONTACT:
Michael J. Cromwell, III, Vice Chairman,
410-312-3600, Doug DeLieto, general, Marty Gitlin, media,
212-661-8030, or Julie Creed, analysts, 312-266-7800, all of the
Financial Relations Board
|
