Atlantic Data Services, Inc. Achieves FY 1999 Revenue of $66.8 Million; EPS of $.60.QUINCY Quincy. 1 (kwĭnt`sē) City (1990 pop. 39,681), seat of Adams co., W Ill., on a bluff above the Mississippi; inc. 1839. It is a trade, industrial (steel parts), and distribution center in a grain and livestock area. , Mass.--(BUSINESS WIRE)--April 29, 1999-- Atlantic Data Services, Inc., (ADS) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADSC ADSC Adobe Document Structuring Conventions ADSC Active Duty Service Commitment ADSC Address Status Changed ADSC Army Development and Selection Centre (UK MoD) ADSC Automatic Data Service Center ) today announced increased revenues and net earnings for the fiscal year ended March 31, 1999 compared to the fiscal year ended March 31, 1998. Revenues for the twelve months of fiscal year 1999 reached $66.8 million, a 56% increase compared to revenues of $42.8 million for fiscal year 1998. Net income for the year increased by 58% to $7.8 million or $.60 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) on 12,855,000 shares compared to $4.9 million, or $.49 per share (diluted) on 9,952,000 shares for fiscal year 1998. For the quarter ended March 31, 1999, ADS posted net revenues of $12.4 million, down 15% from revenues of $14.6 million for the same period in fiscal 1998. Net income for the three months ended March 31, 1999 decreased to $.4 million, or $.03 per share (diluted) on 13,163,000 shares compared to $1.6 million or $.16 per share (diluted) on 9,952,000 shares for the same period in fiscal year 1998. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Howe, Chairman and Chief Executive Office, commented on ADS' performance, "Fiscal year 1999 was a year of success and challenges for ADS. In May 1998, we completed our initial public offering adding $23.4 million to the Company's cash position. During the year we also entered into three alliances with companies specializing in electronic delivery management, internet banking solutions and internet bill delivery and payment systems. These alliances plant the seeds for moving into the millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . FY1999 was, however, not without its challenges. As we announced on February February: see month. 16, 1999, the Company has experienced noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. lower than anticipated bookings and an interim fall off in business with major banking institutions. This, combined with the loss of a major client in our third fiscal quarter, contributed to revenue and net income for our fourth quarter ended March 31, 1999 being less than the comparable quarter ended March 31, 1998." FY2000 Outlook. "We continue to experience lower bookings and our financial results have been effected by the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in merger activity within the banking sector, but expect that this activity will pick up as the year 2000 approaches. Further, our clients are nearing completion of their Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 projects which will also impact revenue generation in the near term," continued Mr. Howe. "Consequently, it is likely that, at least through the remainder of calendar 1999, ADS will continue to experience reduced revenue generation and will likely have revenue less than the corresponding quarters in the prior fiscal year which in turn will have an adverse impact on earnings." In an effort to bring expenses more in line with expected near-term near-term adj. Of, for, or involving a short period of time in the near future. revenue generation, the Company will be reducing its headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. by 65 people (or 21% of the total workforce) effective on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 30, 1999. In commenting on this situation Mr. Howe stated, "We deeply appreciate the efforts and loyalty of our people as we have been working through this transition in the industry. The decision to reduce our headcount is counter to our Company culture, but is necessitated by the current business environment." At March 31, 1999, the Company reported cash of $37.3 million, days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). ("DSO See CSO. ") of 51, no debt, and a current ratio of 7.5 to 1.0. "We have a strong financial position and we have added three senior members to our business development group. We are committed to making the necessary investments in our sales and marketing organization with the goal of increasing our revenue growth in the future," Howe concluded. About ADS - Founded in 1980, ADS, based in Quincy, MA provides information technology strategy consulting and systems integration services to customers exclusively in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, primarily banks. ADS offers rapid, cost effective IT solutions to the business challenges faced by financial services companies through its in depth financial services experience, technological expertise and project management skills. The Company's service offerings are organized around five areas: IT Strategy Consulting, Consolidations and Conversions, Year 2000 Resolution, Application Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , and Electronic Commerce and Home Banking. More information on ADS can be found on the World Wide Web at www.atlanticdataservices.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements and the contents in this press release are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Such statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc , among other things, events, conditions and financial trends that may effect the Company's future plans of operations, business strategy, growth of operations and financial position, including, but not limited to, expectations as to future revenues and earnings per share, and replacement of lost revenue, are not guarantees of future performance and are necessarily subject to risks and uncertainties, some of which are significant in scope and nature that could cause actual results to differ materially from forward-looking statements and those results anticipated. Such risks and uncertainties include, but may not be limited to, variability in quarterly operating results, including the effects of customer purchasing patterns due to Year 2000 issues, dependence on the financial services industry, concentration of revenues and the Company's dependence on major customers, competition for, availability of and retention of professional staff, the impact of a major customer's decision not to extend its contracts with the Company beyond December December: see month. 31, 1998, and other factors described in the Company's filings with the Securities and Exchange Commission, including those set forth under "Risk Factors" in the Company's Registration Statement on Form S-1, as amended, as filed with the Securities and Exchange Commission and declared effective on May 21, 1998. -0-
Atlantic Data Services, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended Year Ended
March 31, March 31,
1999 1998 1999 1998
(unaudited) (unaudited)
Revenues $ 12,399 $ 14,611 $ 66,763 $ 42,830
Cost of
Revenues 9,689 7,971 41,083 24,223
Gross Profit 2,710 6,640 25,680 18,607
Operating Expenses:
Sales and
Marketing 405 1,590 4,469 3,737
General and
Administrative 2,028 2,293 8,849 6,567
Total Operating
Expenses 2,433 3,883 13,318 10,304
Income from
Operations 277 2,757 12,362 8,303
Interest Income 392 37 1,265 146
Interest Expense (1) -- (4) (4)
Income before
Provision for Income
Taxes 668 2,794 13,623 8,445
Provision for Income
Taxes 289 1,173 5,864 3,547
Net Income $ 379 $ 1,621 $ 7,759 $ 4,898
Basic Earnings
per Share $ 0.03 $ 0.16 $ 0.62 $ 0.49
Diluted Earnings
per Share $ 0.03 $ 0.16 $ 0.60 $ 0.49
Weighted Average
Number of
Shares Outstanding
- Basic 12,864 9,952 12,468 9,952
Weighted Average
Number of Shares
Outstanding - Diluted 13,163 9,952 12,855 9,952
Atlantic Data Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, March 31,
1999 1998
(unaudited)
Cash and Cash Equivalents $ 37,326 $ 3,401
Accounts Receivable, Net 7,037 9,100
Prepaid Expenses 100 462
Deferred Taxes 739 284
Total Current Assets 45,202 13,247
Property and Equipment, Net 1,346 995
Other Assets 213 243
Total Assets $ 46,761 $ 14,485
Current Liabilities $ 6,003 $ 5,767
Other Liabilities 13 35
Total Stockholders'
Equity 40,745 8,683
Total Liabilities and
Stockholders' Equity $ 46,761 $ 14,485
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