Boston Communications Group Reports Second Quarter Results.WOBURN Woburn, village, England Woburn (w  `bərn), village, Bedfordshire, S central England. , Mass.--(BUSINESS WIRE)--July 22, 1999--Boston Communications Group bcgi develops products and services that enable wireless operators to fully realize the potential of their networks. bcgi's Access Management, Billing, Payment and Network Solutions help operators rapidly deploy and manage innovative voice and data services for subscribers. , Inc. (Nasdaq:BCGI BCGI Boston Communications Group Inc ) today reported financial results for the second quarter ended June June: see month. 30, 1999. For the quarter ended June 30, 1999, the Company reported net revenues of $27.4 million, a 29% increase over net revenues of $21.3 million reported in the same period last year. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (income from operations before depreciation, amortization, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , interest and taxes) was $4.5 million for the second quarter of 1999, a 101% increase from the $2.2 million reported in the same quarter of 1998 and a 30% increase from the $3.4 million reported in the first quarter of 1999. Net income was $662,000 or $0.04 per share, compared with a net loss of $839,000, or ($0.05) per share, reported in the same period last year and a profit of $190,000 for the first quarter of 1999. E.Y Snowden Snowden is a surname, and may refer to
Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. businesses, as they allowed us to turn the largest quarterly profit in our history, despite the pretax loss pretax loss A loss reported before tax benefits are considered. of more than $1 million in our Systems Division. The surge in profitability was led by our Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Services Division, which more than doubled its profit of the first
quarter even with lower net subscriber growth due to churn churn: see butter. . We have also
taken proactive measures In antiterrorism, measures taken in the preventive stage of antiterrorism designed to harden targets and detect actions before they occur. to reduce our exposure to under-performance by
the Systems Division in future quarters."The Prepaid Services Division's revenue increased to $9.7 million, a 24% increase over the previous quarter and 141% increase over the second quarter of 1998. Prepaid subscribers grew 162,000, or 14% over the first quarter, to 1.36 million subscribers. The growth in subscribers, while strong, was lower than first quarter growth due to churn of subscribers acquired during the holiday season which, due to long expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created periods, churned off the service in the second quarter. The Division's gross margin continues to grow stronger and for the second quarter were 63%, compared to 60% in the first quarter of 1999 and 35% in the second quarter of 1998. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the Division was $1.4 million, up $831,000 from the first quarter of 1999. Revenues for the Teleservices Division continued to be strong at $10.7 million, representing a 9% increase over the first quarter of 1999 and 72% increase over the second quarter of 1998. The majority of growth was derived from billing inquiry services that support the Company's prepaid services. Operating income for the Division was $475,000, compared with operating income of $532,000 for the previous quarter. The decrease in operating income is primarily attributable to expenses associated with the opening of a new call center and reallocation of resources The provision of logistic resources by the military forces of one nation from those deemed "made available" under the terms incorporated in appropriate NATO documents, to the military forces of another nation or nations as directed by the appropriate military authority. between call centers to accommodate growth and improve efficiencies. Systems Division revenues increased to $1.3 million compared with $1.0 million in the first quarter of 1999, still reflecting ongoing economic instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in the Company's foreign markets. Systems Division operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the second quarter was $1.1 million compared with an operating loss of $1.2 million in the first quarter of 1999. With the recent addition of Jerry Adams
Jerry McKee Adams, FAA, FRS (born 17 June, 1940) is an American molecular biologist whose research into the genetics of haemopoietic differentiation and malignancy, led him and his wife, Professor , an industry veteran with considerable international wireless experience, as General Manager of this Division, the Company believes that the Division will minimize its losses which have continued to negatively impact the overall results of the Company. Roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. Services revenues increased to $5.7 million for the second quarter of 1999 from $5.4 million for the first quarter of 1999. The Company attributes this increase to the seasonal trends that are typically experienced in the summer months. Despite the seasonal increase, the unregistered roaming business continues to be challenged by changes in industry trends, such as prepaid options and one rate plans. Roaming Services operating income for the second quarter of 1999 was $196,000, compared with $146,000 for the first quarter of 1999. Boston Communications Group (BCGI), best known as the leading provider of prepaid services to wireless carriers in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , was founded in 1988 and now provides wireless carriers with a range of resources and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services targeted to address the unique needs of this growing industry. BCGI provides one or more of its services to nine of the top ten wireless carriers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , who generate over 75 percent of industry revenues, plus more than 80 additional carriers. Each service plays an integral role in the Company's mission: to help wireless carriers focus resources on their areas of expertise while improving quality, enhancing revenue and controlling costs. This press release may contain, in addition to historical information, 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. that involve risks and uncertainties, including statements regarding the Company's ability to reduce losses in our Systems Division and the expected growth of revenues and earnings. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that would cause actual results to differ materially from those indicated by such forward-looking statements are significant decreases in business from major customers, declines in demand for the Company's services and systems both domestically and internationally, lack of acceptance of the prepaid wireless service and systems, the ability of the Company to successfully support its C2C (Client to Client) An earlier term for peer-to-peer (P2P), in which one user communicates with another user without going through a server in between. See peer-to-peer. network, unforseen outages in the Company's C2C network, the ability of the Company's carrier customers to successfully market and sell C2C wireless prepaid service, general global economic conditions, and the risk factors detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. -0-
BOSTON COMMUNICATIONS GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
6/30/99 6/30/98 6/30/99 6/30/98
Revenues:
Prepaid wireless services $ 9,731 $ 4,043 $ 17,603 $ 6,977
Teleservices 10,707 6,226 20,550 10,815
Roaming services 5,733 7,059 11,168 14,855
System sales 1,250 3,932 2,264 8,996
-------- -------- -------- --------
27,421 21,260 51,585 41,643
Expenses:
Cost of service revenues 17,067 12,899 32,538 24,940
Cost of system revenues 863 2,180 1,598 4,853
Engineering, research
and development 1,551 1,176 2,814 2,579
Sales and marketing 1,664 1,308 3,270 2,641
General and administrative 1,794 1,469 3,434 2,883
-------- -------- -------- --------
22,939 19,032 43,654 37,896
-------- -------- -------- --------
Income before depreciation,
amortization, interest
and taxes 4,482 2,228 7,931 3,747
Depreciation and
amortization 3,544 2,695 6,916 5,147
Impairment of
long-lived assets -- 698 -- 698
-------- -------- -------- --------
Operating income (loss) 938 (1,165) 1,015 (2,098)
Interest income 247 326 521 712
-------- -------- -------- --------
Income (loss) before
income taxes 1,185 (839) 1,536 (1,386)
Provision (benefit)
for income taxes 523 -- 684 (208)
-------- -------- -------- --------
Net income (loss) $ 662 $ (839) $ 852 $ (1,178)
======== ======== ======== ========
Dilutive Earnings (Loss) Per Share:
-----------------------------------
Net income (loss) $ 0.04 $ (0.05) $ 0.05 $ (0.07)
======== ======== ======== ========
Shares used in computing
net income (loss)
per common share 17,041 16,269 17,075 16,262
======== ======== ======== ========
SEGMENT INFORMATION
(in thousands)
Prepaid
Wireless Tele- Roaming
Quarter ended Services services Services Systems Total
----------------------------------------------------------------------
June 30, 1999
-------------
Revenues $ 9,731 $ 10,707 $ 5,733 $ 1,250 $ 27,421
Gross margin 6,104 2,081 919 387 9,491
Gross margin
percentage 63% 19% 16% 31% 35%
Operating
income (loss) 1,413 475 196 (1,146) 938
Percentage
of revenues 15% 4% 3% (92)% 3%
1998
----
Revenues $ 4,043 $ 6,226 $ 7,059 $ 3,932 $ 21,260
Gross margin 1,396 1,419 1,614 1,752 6,181
Gross margin
percentage 35% 23% 23% 45% 29%
Operating
income (loss) (2,785) 103 793 724 (1,165)
Percentage
of revenues (69%) 2% 11% 18% (5%)
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
6/30/99 12/31/98
------- --------
Cash and short term investments $24,505 $25,609
Working capital 35,467 37,397
Property & equipment (net) 43,622 38,055
Total assets 101,163 91,760
Shareholders' equity 80,705 78,658
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