Business Resource Group Confirms Fourth-Quarter Results; 81% Revenue Growth to $27.2 Million.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Dec. 10, 1998--Business Resource Group (BRG BRG Bridge BRG Bearing BRG Bundesrealgymnasium (German: state secondary school) BRG Bureau des Ressources Genetiques (France) BRG Business Relations Group BRG British Racing Green BRG Best Regards ) (Nasdaq:BRGP), a leading provider of total workspace solutions, today confirmed its financial results for the fourth quarter and fiscal year ended October October: see month. 31, 1998, as announced in the news release of November November: see month. 9, 1998. BRG's total net revenues for the fourth quarter of fiscal 1998 were $27.2 million, an increase of $12.2 million, or 81%, over last year's fourth-quarter net revenues of $15.0 million. Revenues from Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , the company's largest customer, were $9.8 million, while revenues from the remaining customer base were $17.4 million during the fourth quarter. Both represented significant increases over the same period of the prior year. Net income for the fourth quarter of fiscal 1998 was $536,000, or $0.11 per share, an increase of $1,340,000, or $0.27 per share, over the net loss of ($804,000), or ($0.16) per share, reported for the fourth quarter of fiscal 1997. Total net revenues for the fiscal year ended October 31, 1998 were $93.6 million, an increase of $20.9 million, or 29%, from the $72.7 million reported for fiscal 1997. Net income for the fiscal year ended October 31, 1998 was $1,503,000, or $0.30 per share, an improvement of $2,265,000, or $0.46 per share, over the net loss of ($762,000), or ($0.16) per share, reported for fiscal 1997. "We are pleased to confirm the significant improvement in operating results for both the fourth quarter and the entire 1998 fiscal year," said John W. Peth, President and Chief Executive Officer of BRG. "We remain focused on programs that we believe will continue to improve operating performance and look forward to reporting on our progress during fiscal 1999," added Mr. Peth. Business Resource Group BRG provides comprehensive, single-sourced workspace product and service solutions, specializing in the cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. management of changes in business facilities. BRG's customer base includes industry leaders across multiple segments, such as Cisco Systems, CompUSA CompUSA, Inc. is a retailer and reseller of consumer electronics, technology products and computer services. CompUSA serves consumer retail, small-to-medium businesses, corporate, government and education customers. , Deloitte & Touche, Excel Communications Excel Communications was founded in 1988 by Dallas entrepreneur Kenny Troutt as a long distance reseller in the US telecom sector at the birth of telecom deregulation. , Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. Computer Products, InfoSeek, Lincoln Lincoln, city and district, England Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. Properties, Motorola, National Semiconductor, Primeco Leasing, the San Jose Sharks The San Jose Sharks are a professional ice hockey team based in San Jose, California, United States. They are members of the Pacific Division of the Western Conference of the National Hockey League (NHL). , Silicon Valley Bank, and Sony Electronics Sony Electronics Inc., headquartered in San Diego, Calif., is the largest component of Sony Corporation of America, the U.S. holding company for Sony's U.S.-based electronics and entertainment businesses. . Headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. , BRG has additional offices in Dallas, Phoenix, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . The matters discussed in this press release include 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. within the meaning of the Securities Exchange Act of 1934, and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. Factors that could cause actual results to differ materially include, but are not limited to, the timely availability, delivery and acceptance of new products and services, the continued strength of sales to Cisco Systems (one of BRG's principal customers), the impact of competitive products, services and pricing, the management of growth and acquisitions, and other risks detailed in the Company's other reports filed with the Securities and Exchange Commission and news releases, copies of which are available from the company upon request. -0-
BUSINESS RESOURCE GROUP
CONDENSED STATEMENTS OF INCOME
(in thousands, except per-share amounts)
Three months ended Year ended
October 31, October 31,
1998 1997 1998 1997
Net revenues:
Workspace products $ 22,606 $ 11,763 $ 76,373 $ 58,303
Workspace services 4,585 3,082 17,132 14,127
Vendor commissions -- 134 60 271
Total net revenues 27,191 14,979 93,565 72,701
Cost of net revenues:
Workspace products 17,901 9,589 60,623 47,100
Workspace services 3,337 2,277 12,611 10,330
Total cost of net
revenues 21,238 11,866 73,234 57,430
Gross profit 5,953 3,113 20,331 15,271
Selling, general and
administrative expenses 4,879 4,452 17,498 16,622
Total operating expenses 4,879 4,452 17,498 16,622
Income (loss) from
operations 1,074 (1,339) 2,833 (1,351)
Other income (expense):
Interest income (expense) (158) (17) (319) 66
Gain on sale of assets 5 -- 55 --
Total other income
(expense) (153) (17) (264) 66
Income before income tax 921 (1,356) 2,569 (1,285)
Provision for income tax 385 (552) 1,066 (523)
Net income (loss) $ 536 ($ 804) $ 1,503 ($ 762)
Net income (loss) per
basic EPS $ 0.11 ($ 0.16) $ 0.30 ($ 0.16)
Shares used in basic
EPS computation 5,023 4,934 4,965 4,902
BUSINESS RESOURCE GROUP
CONDENSED BALANCE SHEETS
(in thousands)
October 31,
1998 1997
ASSETS
Current assets:
Cash and equivalents $ 412 $ 274
Accounts receivable, net 10,662 13,764
Inventory 8,279 1,398
Prepaids and other current assets 2,411 2,076
Total current assets 21,764 17,512
Property and equipment, net 3,107 2,346
Other assets 3,107 902
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27,978 20,760
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit 3,858 --
Accounts payable 3,369 3,997
Accrued liabilities 4,789 4,236
Income taxes payable 337 --
Current notes and capital leases 336 --
Total current liabilities 12,689 8,233
Note payable and capital lease
obligations 733 --
Deferred income tax liability 160 75
Shareholders' equity:
Common stock 50 49
Additional paid-in capital 11,337 10,897
Retained earnings 3,009 1,506
Total shareholders' equity 14,396 12,452
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$27,978 $20,760
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