CKS Group, Inc. Announces Third Quarter Fiscal 1996 Results; Company Reports 63% Year Over Year Increase in 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. 18, 1996--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 announced that revenues for the third quarter of fiscal 1996, ended August 31, 1996, reached $15.5 million, an increase of 63% from revenues of $9.5 million recorded in the same period of the prior year. The Company reported net income of $1.5 million, or $0.11 per share, an increase of 288% from net income of $380,000, or $0.04 per share, for the third quarter of fiscal 1995. Revenues for the nine months, ended August 31, 1996, were $38.4 million, an increase of 57% from $24.5 million for the first nine months of fiscal 1995. Net income for the first nine months of fiscal 1996 was $3.5 million, or $0.27 per share, an increase of 346% from net income of $789,000 or $0.07 per share, for the comparable period in the prior year. New media services contributed approximately 35% of total revenues in the third quarter. Revenues attributable to new media services increased approximately 19% in the third quarter as compared to the second quarter of fiscal 1996. "Our strong third quarter growth in both revenue and profitability reflects 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 continued work with top corporate clients in the creation and implementation of strategic integrated marketing communication programs," commented Mark D. Kvamme, CKS Group's Chairman and Chief Executive Officer. Some of the new business highlights for 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. in the third quarter included integrated marketing communication projects for new and existing clients including Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. Computer, Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. , 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 , The Dun and Bradstreet Corporation, Nicholas-Applegate and Yes! Entertainment, as well as new media design for America Online See AOL. and the development of World Wide Web sites for General Motors, NASDAQ, Citibank, 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. and Apple Computer. CKS Group also completed the acquisition of Schell/Mullaney, Inc. on August 1, 1996. Schell/Mullaney is the exclusive agency-of-record, world-wide for Computer Associates International, Inc., the world's second largest software company with more than $3.5 billion in annual revenues. CKS Group purchased 100% of Schell/Mullaney, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. . The consideration paid by CKS Group was in common stock of CKS Group and the transaction was accounted for as a purchase. CKS Group, headquartered in Cupertino, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , specializes in offering a wide range of integrated marketing communication services 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, 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 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 , 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, 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 , Portland, New York Portland is a town in Chautauqua County, New York, United States. The population was 5,502 at the 2000 census. The Town of Portland is on the shore of Lake Erie west of the City of Dunkirk. History The region was first settled in 1804. and Washington, D.C. -0-
CKS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
August 31 August 31
1996 1995 1996 1995
(Unaudited) (Unaudited)
Revenues $ 15,523 $ 9,532 $ 38,418 $ 24,470 Operating expenses: Direct salaries and related expenses 4,273 2,862 11,048 7,513 Other direct operating expenses 5,788 3,512 14,247 9,322 General and administrative expenses 3,512 2,470 8,796 6,184 Total operating expenses 13,573 8,844 34,091 23,019 Operating income 1,950 688 4,327 1,451 Other income (expense) 355 (10) 1,129 (43) Income before income taxes 2,305 678 5,456 1,408 Income taxes 832 298 1,938 619 Net income $ 1,473 $ 380 $ 3,518 $ 789 Net income per share $ 0.11 $ 0.04 $ 0.27 $ 0.07 Shares used in per share computation 13,519 10,739 13,249 10,721
CKS GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
August 31, November 30,
1996 1995
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 14,037 $ 2,327
Marketable securities 29,964 ---
Accounts receivable, net of
allowances 11,799 7,203
Fees and expenditures in excess of
billings 1,660 471
Prepaid expenses and other
current assets 2,117 1,095
Total current assets $ 59,577 $ 11,096
Property and equipment, net 4,081 2,590 Intangibles resulting from business acquisitions 4,853 --- Total assets $ 68,511 $ 13,686 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,600 $ 6,981 Accrued expenses 4,393 2,371 Billings in excess of fees and expenditures 2,148 959 Current portion notes payable 442 316 Income taxes payable --- 972 Total current liabilities $ 11,583 $ 11,599 Noncurrent portion of notes payable 449 412 Deferred income taxes 243 380 Total liabilities $ 12,275 $ 12,391 Stockholders' equity: Common stock 13 10 Additional paid-in capital 50,500 2,380 Notes receivable from stockholders (292) (292) Retained earnings 6,015 2,497 Total stockholders' equity $ 56,236 $ 4,595 Total liabilities and stockholders' equity $ 68,511 $ 16,986 CONTACT: CKS Group, Inc. Carlton Baab, 408/366-5104 (CFO See Chief Financial Officer. ) Gina Bianchini, 408/342-5333 (IR) |
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