Command Systems, Inc. Reports Second Quarter Results.Business/Technology Editors FARMINGTON, Conn.--(BUSINESS WIRE)--July 25, 2000 Command Systems, 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 :CMND CMND Command CMND Chung Minh Nhan Dan (Vietnamese Identity Card) ), an Information Systems and Technology Solutions company focused on providing a wide range of 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. , strategic solutions and services to help customers fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. their Information Technology requirements, today reported financial results for its second quarter and six months ended June 30, 2000. Revenue in the second quarter ended June 30, 2000 was $5.6 million, slightly higher than the $5.5 million recorded in the first quarter of 2000. Revenue in the second quarter of 1999 was $7.0 million. Revenue for the first six months of 2000 was $11.1 million, compared to $13.9 million for the first six months of 1999. Net loss for the second quarter was $839,000, or ($0.11) per share, compared to a net loss of $844,000, or ($0.11) per share, in the second quarter of 1999. Net loss for the first six months was $1.7 million, or ($0.22) per share, compared to a net loss of $2.1 million, or ($0.27) per share, for the first six months of 1999. The Company's net loss for the second quarter ended June 30, 2000 was impacted by the recognition of a one-time charge of $92,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the disposal of equipment. Absent this one-time charge, the net loss for the quarter would have been $747,000, or ($0.10) per share, slightly better than the $831,000, or ($0.11) per share in the first quarter of 2000. Commenting on the Company's second quarter results, Edward G. Caputo, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said "Many of our clients did not ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale projects as quickly as we expected in the first half of the year and consequentially con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: that had a negative impact on our second quarter results. We were awarded many new projects during this period, with both new and existing customers, which should have an impact during the second half of the year. Our Multi-Site Integrated Solution Strategy is building a positive momentum as our customers begin to appreciate the benefit of Onsite Management at the customer location and the cost-effectiveness and availability of Offshore Information Technology Developers, in an era of scarce technology resources in this country." Mr. Caputo went on to say, "We successfully completed and implemented the first phase of our e-business development projects at MedSpan, a leading healthcare organization; the State of Connecticut and at one of the nation's largest beverage companies. We are beginning the next phases of development, as well as several other new projects with these customers, based on the success of our current work. We have also been awarded an 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. Project and several other projects with one of the largest insurance companies in the world and a sizeable project with one of the leading stock exchanges in the world. In addition, we have entered into a Citrix Silver Partnership relationship with Citrix Systems Citrix Systems' (NASDAQ: CTXS) is an American technology company, based in Fort Lauderdale, Florida, with subsidiary operations in California and Massachusetts, with additional development centers in Australia, India and the UK. , Inc. and continue to leverage existing e-business affiliations and vendor relationships with leading software vendors, such as: Microsoft, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Cybertek, WRQ (WRQ, Inc., Seattle, WA, www.wrq.com) A software company that specialized in terminal emulation and NT-Unix integration products. Founded in 1981 as Walker Richer and Quinn, Inc., a consulting firm in minicomputer and mainframe applications, it introduced an HP terminal emulator for the , Oracle, Cisco and Compaq." About Command Systems Command Systems, whose main office is in Farmington, Connecticut Farmington is a town located in Hartford County in central Connecticut in the United States. The population was 23,641 at the 2000 census. It is home to the world headquarters of several large corporations including Carrier Corporation, Otis Elevator Company, and Carvel. , was founded in 1985 and provides a wide range of information technology solutions and services, which enable e-business development. The Command Systems' Multi-Site Integrated Solution Strategy provides multi-site, ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified See certification. application development and maintenance services to customers, in support of their evolving e-business processes and information technology requirements, including: project management, e-business development, database services, consulting and application outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. . Command Systems maintains offices in 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 , Boston, Hartford, Stamford and an Offshore Technology Resource Center in Bangalore, India. CommandPRO, CommandTAME, CommandWEB, CommandNET, CommandDATA, CommandAPPS, CommandSOURCE and CommandSTAFF are all registered trademarks of Command Systems, Inc. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statements contained in this document which are not historical fact are 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. based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.
Command Systems, Inc.: 76 Batterson Park Road, Farmington, CT 06032
Tel. (860) 409-2000 or 877-COMMAND
Web sites: http://www.CommandeSolutions.com
http://www.Commandsys.com
Command Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended June 30,
2000 1999
Revenue $ 5,623 $ 6,998
Cost of revenue 4,058 5,156
Gross profit 1,565 1,842
Selling, general and administrative expense 2,541 2,802
Amortization of goodwill 126 114
Loss from operations (1,102) (1,074)
Other income, net 265 230
Loss before income taxes (837) (844)
Income taxes (2) --
Net loss $ (839) $ (844)
Loss per share - basic and diluted $ (0.11) $ (0.11)
Weighted average number of shares outstanding -
basic and diluted 7,657 7,657
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2000 1999
Current assets
Cash, cash equivalents and marketable
securities $17,644 $18,248
Accounts receivable, net 2,791 3,491
Other current assets 480 600
Total current assets 20,915 22,339
Property and equipment, net 1,268 1,569
Goodwill and other assets 6,294 6,560
Total assets $28,477 $30,468
Liabilities $ 2,833 $ 3,113
Stockholders' equity 25,644 27,355
Total liabilities and stockholders' equity $28,477 $30,468
Command Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
Six Months Ended June 30,
2000 1999
Revenue $ 11,126 $ 13,931
Cost of revenue 8,105 10,523
Gross profit 3,021 3,408
Selling, general and administrative expense 4,920 5,736
Amortization of goodwill 252 228
Loss from operations (2,151) (2,556)
Other income, net 501 498
Loss before income taxes (1,650) (2,058)
Income taxes (20) --
Net loss $ (1,670) $ (2,058)
Loss per share - basic and diluted $ (0.22) $ (0.27)
Weighted average number of shares outstanding -
basic and diluted 7,657 7,657
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