CKS Group, Inc. Announces Record Third Quarter Fiscal 1997 Results; Company Reports 61% Revenue Growth and Reaches $100 Million in Year-to-Date Revenues.CUPERTINO Cu·per·ti·no A city of western California west of San Jose. It has an electronics industry. Population: 50,000. , Calif.--(BUSINESS WIRE)--Sept. 17, 1997--CKS Group, Inc. (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 :CKSG) today reported record revenues of $39.8 million for the third quarter of fiscal 1997, an increase of 61% from revenues of $24.7 million recorded in the same period of the prior year. Net income was a record $3.2 million, or $0.21 per share, excluding the effects of the nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". resulting from the acquisition of SiteSpecific, compared with pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income, including the effect of a bonus provision for McKinney McKinney, city (1990 pop. 21,283), seat of Collin co., N Tex.; inc. 1849. It is a shipping point for cotton, cattle, and grains. Manufacturing includes electronic equipment, leather and food products, marble items, and copper wire. & Silver, of $2.1 million, or $0.15 per share, for the third quarter of fiscal 1996, representing increases of 51% and 40%, respectively. Revenues for the nine months ended August 31, 1997, were a record $100.0 million, an increase of 61% from $62.0 million for the first nine months of fiscal 1996. Pro forma net income for the first nine months of fiscal 1997, excluding the effects of non-recurring charges resulting from the acquisitions of McKinney & Silver and SiteSpecific, was $8.0 million, or $0.52 per share, an increase of 55% from pro forma net income of $ 5.2 million, or $0.36 per share, for the first nine months of fiscal 1996, which include the effect of a bonus provision for McKinney & Silver. Revenues attributable to new media services increased approximately 70% in the third quarter of fiscal 1997 as compared to the third quarter of fiscal 1996. New media services contributed approximately 26% to total revenues in the third fiscal quarter. "Our third quarter results reflect a continued commitment to providing technology-driven marketing services which enable our clients to be competitive in a rapidly changing business environment. In executing on our strategy, CKS Group CKS Group was an advertising agency based in Cupertino, California, catering to technology companies. The initials CKS came from the three name partners, Bill Cleary, Mark Kvamme, and Tom Suiter. All three had previously worked for Apple Computer. is focused on building long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationships with our clients, doing great work and continuing to grow revenue and profit sequentially and year-over- year," commented Mark D. Kvamme, CKS CKS Checks CKS Center for Korean Studies (UC Berkeley) CKS Center for Knowledge Societies CKS Carajas, Para, Brazil - International / Brasilia Brazil (Airport Code) CKS Crankshaft Sensor Group's Chairman and Chief Executive Officer. In the third quarter, CKS Group continued to work with existing clients such as Apple, Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar , Audi, Barnett Banks Barnett Bank, founded in 1877, eventually became the largest commercial bank in Florida. It was purchased by NationsBank in 1997, but even before signs on Barnett's branches were changed, NationsBank merged with BankAmerica Corp., creating Bank of America. , Citibank CITIBANK First National City Bank , Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. PC Corporation, Hughes Network Systems Hughes Network Systems, LLC (HNS), is a provider of broadband satellite network products for businesses and consumers. HNS pioneered the development of high-speed satellite Internet access services and IP-based networks with its original DirecPC service but which it now markets , MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. , Mitsubishi Motors Mitsubishi Motors Corporation (三菱自動車工業株式会社 , NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Computer Systems Division, Nicholas-Applegate, Royal Caribbean Cruise Lines
Name Headquarters A'rosa Europe NCL America America AIDA Cruises Europe American Cruise Lines America , Sears, Silicon Graphics, Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. and Visa. In addition, CKS Group initiated relationships with new clients such as Bed, Bath & Beyond, Ben & Jerry's, Cox Interactive Media, Fox River Paper, Logitech Logitech International S.A. (SWX: LOGN, NASDAQ: LOGI), headquartered in Romanel-sur-Morges, Switzerland, is the holding company for Logitech Group, an industry leader in the personal peripheral market. , Nabisco, National Public Radio and Vail Resorts Vail Resorts, Inc. runs four ski resorts in Colorado, as well as one in Lake Tahoe (on the California-Nevada border) and a summer resort in Wyoming. They also own luxury resort hotels throughout the United States. The company trades on the New York Stock Exchange, symbol MTN. . Certain of the statements set forth in this news release are forward looking statements. Actual results could differ materially from those set forth, or contemplated, in these forward looking statements. Important factors that could cause such actual results to differ materially include the establishment or loss of key client relationships, the development of the market for new media, the success of the Company's business acquisition strategy, the uncertain adoption of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the as a medium of commerce and communications and other risks. Investors are encouraged to read the Company's reports on Forms 10-Q and 10-K filed with the Securities and Exchange Commission, particularly the risk factors and "Factors Affecting Operating Results" set forth in those reports. CKS Group is an international integrated marketing services and technology holding company headquartered in Cupertino. The Company specializes in offering a wide range of integrated marketing communication services and technology solutions that help companies market their products, services and messages. The integrated marketing communication services CKS Group provides include strategic corporate and product positioning, corporate identity and product branding, new media, systems integration, environmental design, packaging, collateral systems, advertising, direct mail, consumer promotions, trade promotions and media placement services. CKS Group is a provider of integrated marketing communication programs that utilize advanced technology solutions and new media -- which CKS Group defines as media that delivers content to the end users in digital form, including the World Wide Web, the Internet, proprietary online services, CD-ROMs, laptop Same as laptop computer. laptop - portable computer PC presentations and interactive kiosks An Interactive kiosk is a computer terminal that provides information access via electronic methods. Interactive kiosks sometimes resemble telephone booths, but can also be used while sitting on a bench or chair. . CKS Group has offices in Silicon Valley, CA; 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 , CA; Portland, OR; New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY; Atlanta, GA; Washington, D.C; Raleigh, NC; Greenwich, CT; Hamburg Hamburg, city, Germany Hamburg (häm`b  rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , Germany; Munich,
Germany and Vienna, Austria. The Company is located on the World Wide
Web at www.cks.com -0-
CKS GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
August 31 November 30,
1997 1996
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 11,675 $ 19,385
Marketable securities 22,254 37,895
Accounts receivable, net of allowances 31,465 22,651
Fees and expenditures
in excess of billings 8,015 2,792
Prepaid expenses and
other current assets 1,260 907
Deferred income taxes 1,599 800
Total current assets 76,268 84,430
Property and equipment, net 5,844 4,571
Deferred income taxes 9,782 300
Goodwill and other assets 26,001 5,937
Total assets $117,895 $ 95,238
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,876 $ 21,392
Accrued expenses 5,837 6,424
Billings in excess of fees
and expenditures 1,668 3,257
Current portion of liabilities
to related parties 2,423 1,955
Current portion of notes payable
and capital lease obligations 863 433
Income taxes payable 556 188
Total current liabilities 31,223 33,649
Liabilities to related parties,
less current portion -- 223
Notes payable and capital lease
obligations, less current portion 396 502
Total liabilities 31,619 34,374
Stockholders' equity:
Common stock 14 13
Additional paid-in capital 73,212 51,716
Notes receivable from stockholders (198) (292)
Unrealized loss on marketable securities (258) (65)
Retained earnings 13,506 9,492
Total stockholders' equity 86,276 60,864
Total liabilities and
stockholders' equity $117,895 $ 95,238
CKS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Nine Months
Ended Ended
Aug. 31 Aug. 31 Aug. 31 Aug. 31
1997 1996 1997 1996
(Unaudited) (Unaudited)
------- ------- ------- -------
Revenues $39,750 $24,682 $99,980 $62,012
Operating expenses:
Direct salaries and
related expenses 8,870 6,009 24,325 15,758
Other direct operating expenses 17,122 10,922 41,165 26,842
General and administrative
expenses 8,390 4,605 22,048 11,800
Merger costs 859 -- 2,452 --
Total operating expenses 35,241 21,536 89,990 54,400
Operating income 4,509 3,146 9,990 7,612
Other income, net 198 445 988 1,364
Income before income taxes 4,707 3,591 10,978 8,976
Income taxes 2,327 819 4,527 2,053
Net income $ 2,380 $ 2,772 $ 6,451 $ 6,923
Pro forma net income
and per share data (1):
Income before income taxes,
as reported $ 4,707 $ 3,591 $10,978 $ 8,976
Pro forma income taxes 2,327 1,366 4,845 3,412
Pro forma net income $ 2,380 $ 2,225 $ 6,133 $ 5,564
Pro forma net income
per share $ 0.15 $ 0.15 $ 0.40 $ 0.39
Shares used in per share
computation 15,633 14,569 15,342 14,322
(1) Pro forma net income gives effect to pooling-of-interests
combinations between the Company, SiteSpecific and M&S. M&S was a
general partnership and, as a result, M&S's historical results of
operations, which have been included with the Company's under the
pooling of interests method, do not include a provision for income
taxes. Pro forma net income and net income per share data include a
tax provision as if M&S had been a taxable "C" corporation for all
periods.
CKS GROUP, INC. AND SUBSIDIARIES
Pro Forma Consolidated Statements of Income (1)
Three Months Nine Months
Ended Ended
Aug. 31 Aug. 31 Aug. 31 Aug. 31
1997 1996 1997 1996
------- ------- ------- -------
(Unaudited) (Unaudited)
Revenues $39,750 $24,682 $99,980 $62,012
Operating expenses:
Direct salaries and
related expenses 8,870 6,146 24,325 16,407
Other direct
operating expenses 17,122 10,922 41,165 26,842
General and
administrative expenses 8,390 4,605 22,048 11,800
Total operating expenses 34,382 21,673 87,538 55,049
Operating income 5,368 3,009 12,442 6,963
Other income, net 198 445 988 1,364
Income before income taxes 5,566 3,454 13,430 8,327
Income taxes 2,327 1,314 5,443 3,167
Net income $ 3,239 $ 2,140 $ 7,987 $ 5,160
Pro forma net
income per share $ 0.21 $ 0.15 $ 0.52 $ 0.36
Shares used in per
share computation 15,633 14,569 15,342 14,322
(1) The pro forma consolidated statements of income give effect
to the pooling of interests business combinations between the
Company, SiteSpecific, and M&S. The statement excludes the $2.5
million in nonrecurring charges for merger costs recorded by the
Company and includes a tax provision as if M&S had been a taxable C
Corporation for all periods. The pro forma consolidated statements
of income for the three and nine months ended August 31, 1996 give
effect to the implementation of a management bonus plan for the
former partners of M&S as if such plan had been in effect as of the
beginning of the periods presented. The effect of such pro forma
adjustments was to increase direct salaries and related expenses by
$137,000 and $649,000 during the three months and nine months ended
August 31, 1996, respectively.
CONTACT: CKS Group, Inc. Carlton H. Baab, 408/366-5100 (Chief Financial Officer) Gina L. Bianchini, 408/342-5333 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) gbianchini@cks.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion