Command Systems Announces Third Quarter Results.FARMINGTON Farmington. 1 Town (1990 pop. 20,608), Hartford co., central Conn., on the Farmington River; inc. 1645. It is mainly residential with some light industries. The town has a private girls' school and the Univ. , Conn.--(BUSINESS WIRE)--Oct. 26, 1999-- 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) ) today announced financial results for its third quarter and nine months ended September September: see month. 30, 1999. Third quarter revenue was $6,622,000 compared to $8,921,000 for the 1998 third quarter. Revenue for the nine months was $20,553,000, compared to $25,552,000 for the first nine months of 1998. The decline was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to diminishing di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. demand for Year 2000 services and a reduction in hardware and software sales. The Company reported a net loss of $628,000 for the quarter ended September 30, 1999, compared to a net loss of $188,000 for the corresponding period in the prior year. The net loss for the nine-month period ended September 30, 1999, was $2,686,000 compared to net income of $291,000 for the first nine months of 1998. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the 1999 third quarter were a loss of $.08 versus a loss of $.02 in the 1998 third quarter. Basic and diluted earnings per share for the ninth months ended September 30, 1999, were a loss of $.35 compared to breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in 1998. Earnings applicable to common stockholders for the nine months ended September 30, 1998 were affected by preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the . The weighted average number of shares outstanding used in the calculation of basic and diluted earnings per share for the nine months ended September 30, 1999, increased over the comparable 1998 period as a result of shares issued in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's March 12, 1998 initial public offering. The Company lost $914,000 from operations in the third quarter compared with a loss from operations of $573,000 in the third quarter of 1998. The Company lost $3,470,000 from operations in the first nine months of 1999 compared with a loss from operations of $524,000 in the comparable 1998 period. Operating results were adversely affected due to pressures arising from low rates of employee 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 in the offshore technology resource center and a less profitable mix of business. Demand for Year 2000 services is diminishing rapidly, and pressure on the Company's margin on its other business is continuing; accordingly, the Company's profitability will continue to be adversely affected. 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. , provides a wide range of information technology solutions and services, consulting, training and 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. to financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. organizations to support their evolving business processes and systems requirements. Its web site is http://www.commandsys.com. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by forward-looking statements. -0-
Command Systems, Inc.
Condensed Consolidated Statement of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,
---------------- ---------------
1999 1998
---------------- ---------------
Revenue $ 6,622 $ 8,921
Cost of revenue 4,629 6,331
---------------- ---------------
Gross profit 1,993 2,590
Selling, general and
administrative expense 2,793 3,049
Amortization of goodwill 114 114
---------------- ---------------
Loss from operations (914) (573)
Other income, net 286 319
---------------- ---------------
Loss before benefit for income taxes (628) (254)
Benefit for income taxes - 66
---------------- ---------------
Net loss $ (628) $ (188)
---------------- ---------------
Preferred stock dividends and accretion $ - $ -
---------------- ---------------
Loss applicable to common stockholders $ (628) $ (188)
---------------- ---------------
Loss per share - Basic $ (0.08) $ (0.02)
---------------- ---------------
Loss per share - Diluted $ (0.08) $ (0.02)
---------------- ---------------
Weighted average number of shares
outstanding - Basic 7,657 7,657
Weighted average number of shares
outstanding - Diluted 7,657 7,674
Condensed Consolidated Balance Sheet
(in thousands)
(unaudited)
September 30, December 31,
1999 1998
---------------- ---------------
Current assets
Cash, cash equivalents and
marketable securities $ 16,448 $ 18,994
Accounts receivable, net 4,986 6,433
Other current assets 708 936
---------------- ---------------
Total current assets 22,142 26,363
Property and equipment, net 1,766 2,283
Other assets 6,718 7,001
---------------- ---------------
Total assets $ 30,626 $ 35,647
---------------- ---------------
Liabilities $ 2,926 $ 5,192
Stockholders' equity 27,700 30,455
Total liabilities and ---------------- ---------------
stockholders' equity $ 30,626 $ 35,647
---------------- ---------------
Command Systems, Inc.
Condensed Consolidated Statement of Income
(in thousands, except per share data)
(unaudited)
Nine Months Ended September 30,
--------------------------------
1999 1998
---------------- ---------------
Revenue $ 20,553 $ 25,552
Cost of revenue 15,152 17,390
---------------- ---------------
Gross profit 5,401 8,162
Selling, general and
administrative expense 8,529 8,344
Amortization of goodwill 342 342
---------------- ---------------
Loss from operations (3,470) (524)
Other income, net 784 700
---------------- ---------------
(Loss) income before benefit
for income taxes (2,686) 176
Benefit for income taxes - 115
---------------- ---------------
Net (loss) income $ (2,686) $ 291
---------------- ---------------
Preferred stock dividends and accretion $ - $ 260
(Loss) income applicable to ---------------- ---------------
common stockholders $ (2,686) $ 31
---------------- ---------------
(Loss) earnings per share - Basic $ (0.35) $ 0.00
---------------- ---------------
(Loss) earnings per share - Diluted $ (0.35) $ 0.00
---------------- ---------------
Weighted average number of shares
outstanding - Basic 7,657 6,730
Weighted average number of shares
outstanding - Diluted 7,657 6,763
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