Cambridge Technology Partners Announces Full Year and Fourth Quarter 1999 Results.Business/Technology Editors CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass.--(BUSINESS WIRE)--Feb. 17, 2000 E-Business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. Solutions Reaches $243.2 Million for FY 1999; Up 27% Year-Over-Year And Up 45% in 4Q1999 Versus 4Q1998 Cambridge Accelerates Its Transition to E-Business in 2000 Cambridge Technology Partners (Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. ), Inc. (NASDAQ NASDAQin 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 :CATP CATP Cambridge Technologies (stock symbol) CATP Coverage Acceptance Test Plan CATP Committee of Adaptation to Technical Process ) (Cambridge), a global e-Business services provider, today announced revenues and net earnings for the fourth quarter ended December December: see month. 31, 1999. Revenues for the twelve months of 1999 reached $628.1 million versus $612.0 million for the same period of 1998. Net income for the year was $2.1 million, or $.03 (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. ) versus $51.9 million, or $.83 (diluted) for the same period in 1998. Included in other income for 1999 are gains from equity investments resulting from Cambridge's 24% share in the Cambridge Technology Capital Fund of $29.6 million, or $.30 (diluted) per share, and a gain on sale of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $2.2 million unrelated to the Fund. For the quarter ended December 31, 1999, Cambridge posted net revenues of $145.0 million versus $160.2 million for the same period of 1998. Net income (loss) for the three months ended December 31, 1999 was $(17.3) million, or $(.28) (diluted) versus $16.3 million, or $.26 per share (diluted) for the same period the prior year. Included in other income for three months ended December 31, 1999 is $23.7 million, or a $.24 per share (diluted) gain from Cambridge's share in Cambridge Technology Capital Fund. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the twelve months ended December 31, 1999 were $660.1 million versus $531.0 million in 1998. The increase in expenses was primarily related to increased salary requirements and bonuses associated with remaining competitive in a labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience where technical talent is at a premium, as well as costs associated with increased idle time The duration of time a device is in an idle state, which means that it is operational, but not being used. as a result of skill mix issues and increased facilities costs. Jack Messman, President and Chief Executive Officer of Cambridge commented, &uot;E-Business solutions drove our business in 1999, establishing Cambridge as the preferred partner to companies that seek e-leadership in their industries, such as our clients Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , NatWest,
and Office.com.&uot;
&uot;1999 was a year when Cambridge experienced healthy demand for its e-Business solutions, which represents approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $243.3 million or 39% of total revenues, versus $190.9 million or 31% last year, making us one of the largest worldwide providers of e-Business solutions. 1999 was also a year of change for Cambridge, as the demand for custom software applications and ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. package implementations decreased as a result of the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 event. In addition, Cambridge carried out a major reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and international units international units, n.pl a unit of measurement that evaluates the potency of a substance. Because it measures potency instead of quantity, there is a different international unit-to-mg conversion ratio for each particular substance. with a view to more closely tracking the dramatic demand for e-Business solutions.&uot; &uot;Our global e-Business revenue now gives Cambridge a platform on which to build an entirely new company - one solely focused on accelerating our clients' evolution into New Economy leaders. E-models of business are the order of the day for our Global 1000 and other clients - and it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have also the mandate for our 4,400 employees.&uot; Mr. Messman continued, &uot;In the fourth quarter of 1999, Cambridge accelerated the trend toward e-Business solutions with a 45% increase over the prior year. Cambridge's e-Business solutions represented 48% of the fourth quarter 1999 revenues and 39% of the full year 1999 results, while e-Integration represented 42% of total 1999 revenues, versus 49% of 1998 total revenues. Cambridge Management Consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects , our Change Management solutions group, accounted for 19% of 1999 revenues versus 20% in 1998.&uot; Global Revenue by Area: Substantial Growth Led by E-Business Solutions Global e-Business revenue contributed $69.3 million of our $145.0 million for the fourth quarter, representing 45% growth over the prior year. North America's e-Business reported $46.5 million and international e-Business reported $22.8 million. Of the e-Business revenue, Cambridge's Interactive Solutions posted $31.5 million in revenues, a 127% increase over the fourth quarter of 1998 revenue of $13.9 million. The Evolution of Our Model: Capitalizing on Our Strengths for Future Market Opportunities in E-Business &E-Integration. Mr. Messman continued, &uot;The rise of e-markets and the evolution of networked business models is creating unique opportunities for Cambridge. For us to realize these opportunities, we will proactively change the way we create value, the way we form and conduct relationships, the way we partner with clients, and the way we execute our engagements.&uot; Mr. Messman added, &uot;Our e-Business solutions segment brings together many of our existing skills and competencies into a cohesive cohesive, n the capability to cohere or stick together to form a mass. unit to better respond to the market opportunity represented by the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the internet as a value exchange mechanism. The skills include the cognitive and creative elements of user interface design; the management, localization Customizing software and documentation for a particular country. It includes the translation of menus and messages into the native spoken language as well as changes in the user interface to accommodate different alphabets and culture. See internationalization and l10n. and personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. of content; the integration of user interface and transaction processing systems A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. ; and the management and administration of web based Coming from a Web server. See Web application. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions.&uot; &uot;We will continue to partner with our clients on the formation of new business models through our Digital Business Strategy competency COMPETENCY, evidence. The legal fitness or ability of a witness to be heard on the trial of a cause. This term is also applied to written or other evidence which may be legally given on such trial, as, depositions, letters, account-books, and the like. 2. . We are augmenting our e-Business solutions offering by focusing our e-markets practice to address the creation and operation of trading exchanges and blended media service centers with a view to putting the full power of the Internet at the disposal of our clients' customers. We will also address the large and growing market opportunity of transforming clients to networked-based businesses. Our clients will need to link their business models, and network their business processes, with a world populated pop·u·late tr.v. pop·u·lat·ed, pop·u·lat·ing, pop·u·lates 1. To supply with inhabitants, as by colonization; people. 2. with discrete A component or device that is separate and distinct and treated as a singular unit. value producing and value exchanging entities. This will be the mandate of our e-Integration practice. Cambridge's experience in designing custom systems and implementing package solutions will become more and more critical to our clients' success.&uot; The fact that e-Business solutions delivered to clients have and will continue to become more integrated with the backend of the value chain and legacy systems represents a significant growth platform for Cambridge. In order to fully reflect this, for future reporting purposes, our solutions will now be segmented into two lines of business: E-Business and E-Integration. Individual practice or service segments will be folded into these two lines of business. E-Business Projects in Q4 1999 During the fourth quarter of 1999, Cambridge partnered with well-recognized brand name clients on several different e-Business projects to deploy e-Business solutions across the globe. Some of Cambridge' s client wins and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. projects deployed in the latter part of 1999 included:
--Autobytel: Cambridge was selected to design, build and implement
Autobytel's Global e-Business Strategy. In addition to building
infrastructure for European expansion, Cambridge's cognitive and
creative experts will spearhead development of unique user
requirements for each target European country.
--Azlan Group Plc: Cambridge completed an e-Business project for
the UK-based network solutions provider Azlan Group Plc,
translating Azlan's business model online. The blended media
implementation combines Azlan's three vertical business
offerings. Cambridge utilized BroadVision software to fully
integrate the back office in an extranet partner strategy.
--Bank of Scotland: Cambridge, in partnership with Bank of
Scotland, designed and built the first online e-mortgage service
in Europe, EUBOS, in just 6 months. The site offers real time
mortgage arrangements, as well as online borrower limit, monthly
repayment, and life assurance premium calculators.
--Homesite Insurance: Cambridge is working with Homesite Insurance,
an emerging force in the online homeowners insurance arena, to
architect and build a sophisticated B2B infrastructure that will
enable Homesite to market and sell its insurance offerings
through business partners in related markets such as auto
insurance, life insurance, and mortgage financing.
--Kentucky Commonwealth Virtual University: On the distance
learning side, Cambridge implemented distance learning
applications for the virtual university which offers a central
on-line library and a set of support services for students who
choose to take classes online.
--USA Networks: For the USA Electronic Commerce and Services (ECS)
division, Cambridge acted as an e-systems integrator, and
provided a fully blended e-commerce customer management solution
for ECS to provide unrivaled customer satisfaction through a
variety of channels. The system is scalable and can support up to
15,000 simultaneous agents.
Year 2000 Initiatives: Led by Acceleration to E-Business &E-Integration For the year 2000, Cambridge's #1 focus will be to accelerate the migration of our organization toward E-Business and E-Integration. That focus will be executed by several key initiatives:
--Re-build the executive leadership
Corporate
- John Gavin, Senior Vice President and Chief Financial Officer:
Gavin brings more than 20 years of international multi-billion
dollar corporate finance experience with Data General and Price
Waterhouse.
- Maurice Olivier, Senior Vice President, Strategy and Corporate
Development: Olivier brings more than 25 years of
international business and management expertise to Cambridge.
Olivier comes to Cambridge from Arthur D. Little, where he
spent 17 years in a variety of senior consulting and management
positions.
- Alan Friedman, Vice President of Global Human Resources,
Knowledge Management and Leadership Development. Friedman also
joins Cambridge from Arthur D. Little, where he was Senior Vice
President of Global Human Resources and Information Technology
Systems.
North American Operations
- C.H. Hariharan, Chief Technology Officer: Hariharan brings to
Cambridge more than twenty years of leading-edge technical
experience with recognized organizations such as Computer
Sciences Corporation, Novell, Unix System Laboratories and AT&
Bell Laboratories.
- Michael Kuehn, Central Market Leader: Kuehn comes to Cambridge
from Booz Allen &Hamilton, where he spent more than ten years
in senior consulting and management positions.
--Strengthen training efforts
In Q4, Cambridge launched its first distance learning
initiative to educate all Cambridge employees on the
technology, market and industry drivers in the New Economy.
Based on DigitalThink technology, the Web-based training
program enables Cambridge to train employees faster and more
cost-effectively than traditional classroom training.
--Make strategic investments aligned with the e-Business focus
Cambridge will invest approximately $20 million in systems
infrastructure, new methodology development, and training and
career development to support its core strategic thrust.
--Pursue new business opportunities through our NEWCO strategy to
complement our core business and expand into new markets, such
as e-markets and Application Service Providers (ASP)
In December, Cambridge announced the creation of its NEWCO (New
Economy Companies) investment strategy, which will enable
Cambridge to create and pursue new business opportunities
through a networked services model and, at the same time,
increase shareholder value and create a unique employee
retention program. NEWCO is targeting a variety of
opportunities such as application service provider companies,
new e-services firms, e-technology products, and B2B dot.com
companies. Led by new Cambridge EVP, Ralph Linsalata, the NEWCO
team is currently evaluating numerous opportunities and
business plans.
Cambridge Technology Capital Fund II recently initiated fund
raising with a minimum target of $150 million.
Outlook for 2000 In 2000, Cambridge will continue its transition to e-Business at an accelerated pace. However, the skill sets required to deliver e-Business solutions are in high demand, and the issues surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. turnover and 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 PeopleSoft (PeopleSoft, Inc., Pleasanton, CA, www.peoplesoft.com) A software company that specialized in enterprise-wide applications for client/server environments. Initially specializing in human resources, its package offerings covered the gamut including financial, distribution, manufacturing Software implementation services are bound to remain. The Company therefore expects to continue its loss position in the first half of 2000 based on flat revenues compared to the first half of the prior year, and the need to make strategic investments to fund the Company's growth. Even with total revenues expected to be flat in the first half of 2000, Cambridge expects continued growth in its e-Business revenues. About Cambridge Technology Partners Cambridge Technology Partners provides management consulting and systems integration services to transform its clients into e-Businesses. Working in collaboration Working together on a project. See collaborative software. with Global 1000, high-velocity Adj. 1. high-velocity - operating at high speed; "a high-speed food processor"; "a high-velocity shell" high-speed fast - acting or moving or capable of acting or moving quickly; "fast film"; "on the fast track in school"; "set a fast pace"; "a fast car" middle market companies and dot-com companies An organization that offers its services exclusively on the Internet, either via the user's Web browser or a client program that must be installed in the user's computer. Amazon.com, Yahoo!, Google and eBay are examples of dot-com companies. , Cambridge combines a deep understanding of New Economy issues with integrated, end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. services, and a proven track record of shared risk and rapid, guaranteed delivery. Cambridge generated $628.1 million in 1999, with $243.3 million from its global e-Business solutions. Cambridge has more than 4,400 employees and 55 offices worldwide. Cambridge on the Web: (http://www.ctp.com). 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. This Press Release includes forward-looking statements (statements that are not historical facts and relate to future performance) that involve risks and uncertainties. These forward-looking statements include statements about future strategies and financial expectations, and they are subject to risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the success of executing Cambridge's planned transition to e-Business, the effectiveness of Cambridge's efforts to identify and support appropriate NEWCO NewCo is a generic name used to refer to corporate spin-offs and startups before they are assigned a final name. Examples
adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Statements&uot; in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31,1998 and in the reports on Form 10-Q Form 10-Q See 10-Q. for the first, second and third quarters of 1999. Cambridge assumes no obligation to update the information contained in this press release.
CAMBRIDGE TECHNOLOGY PARTNERS (MASSACHUSETTS), INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
(Unaudited)
Net revenues $ 145,007 $ 160,166 $ 628,111 $ 612,041
Costs and expenses:
Project personnel 86,872 66,604 316,931 272,263
General and
administration 39,183 16,096 94,590 66,454
Sales and marketing 19,850 14,123 66,042 56,947
Other costs 52,101 38,362 182,497 126,970
Business combination
costs -- -- -- 8,400
Total operating
expenses 198,006 135,185 660,060 531,034
Income (loss) from
operations (52,999) 24,981 (31,949) 81,007
Other income (expense):
Interest Income, net 697 476 2,727 2,233
Gain on equity
investment 23,739 29,556
Gain on sale of
marketable equity
securities -- 364 2,228 798
Foreign exchange
gain (loss) 716 (644) 856 (934)
Income (loss) before
income taxes (27,847) 25,177 3,418 83,104
Provision (benefit) for
income taxes (10,582) 8,926 1,299 31,164
Net income (loss) $ (17,265) $ 16,251 $ 2,119 $ 51,940
Basic net income (loss)
per share $ (.28) $ .28 $ .04 $ .90
Diluted net income
(loss) per share $ (.28) $ .26 $ .03 $ .83
Weighted average
number of common
shares outstanding 60,841 58,770 60,004 58,079
Weighted average
number of common
and common equivalent
shares outstanding 60,841 61,896 61,745 63,301
CAMBRIDGE TECHNOLOGY PARTNERS (MASSACHUSETTS), INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31 December 31,
1999 1998
Cash and cash equivalents $ 62,288 $ 80,051
Investments held to maturity 28,659 24,918
Accounts receivable, net 126,842 133,583
Other current assets 51,893 46,427
Total current assets 269,682 284,979
Property and equipment, net 53,127 48,255
Other assets 44,865 17,972
Total assets $ 367,674 $ 351,206
Current liabilities $ 90,535 $ 107,050
Other liabilities 103 2,006
Total stockholders' equity 277,036 242,150
Total liabilities and
stockholders' equity $ 367,674 $ 351,206
The following table presents unaudited revenue data for the
periods indicated. This information was derived from management's
estimate of the allocation of net revenues among the revenue
categories of e-business, e-integration and change management
services. This table should be read in conjunction with the historical
financial information also presented in this press release. These
estimates are not necessarily indicative of results for any prior or
future periods.
CAMBRIDGE TECHNOLOGY PARTNERS (MASSACHUSETTS), INC.
REVENUE SUMMARY BY LINE OF BUSINESS
4Q 1999 AND YEAR 1999
% Total Total % 99 % 98 to 99
4Q98 4Q99 Increase 1998 1999 Total Increase
E-BUSINESS $ 47.8 $ 69.3 45% $ 190.9 $ 243.3 39% 27%
E-INTEGRATION $ 81.5 $ 43.5 (47%) $ 299.0 $ 261.3 42% (13%)
CHANGE
MANAGEMENT $ 30.8 $ 32.2 5% $ 122.1 $ 123.5 19% 1%
Total Revenues $160.1 $145.0 (9%) $ 612.0 $ 628.1 100% 3%
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