Digital Fusion Reports First Quarter Results.Business Editors/High-Tech Writers HUNTSVILLE Huntsville, town, Canada Huntsville, town (1991 pop. 14,997), SE Ont., Canada, on the Muskoka River. It has lumber mills and a woodworking plant, but it is sustained mainly by its year-round tourist trade. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--May 14, 2003 Digital Fusion, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DIGF DIGF Dalian International Garment Fair ), a business and information technology (IT) services provider, today announced financial results for the first quarter ended March 31, 2003. Financial Comparisons For the quarter ended March 31, 2003, revenues were $1.6 million versus $2.8 million for the previous year. The decrease in revenues during the first quarter 2003 compared to the same period last year was primarily due to the reduction in IT spending by our customers. Net income (loss) for the quarter ended March 31, 2003 was ($366,000) versus $1,447,000 for the previous year. During 1st quarter 2002, the Company recorded a gain on forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne of legacy debts of $1.5 million and reduced its severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. by $120,000. The net income excluding these items for 1st quarter 2002 was ($212,000). Business Discussion The corporate headquarters for the Company was successfully moved from Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. to Huntsville, Alabama Huntsville is the county seat of Madison County, Alabama. Huntsville is the largest city in northern Alabama in a region of a half-million people, with the city proper having 168,132 residents (2006 estimate). during the first quarter. Cost savings will be realized starting in the second quarter and total savings of approximately $10,000 per month starting in the third quarter. Consultant utilization improved each month during the quarter, however, delays in the start of customer projects continued to aversely a·verse adj. Having a feeling of opposition, distaste, or aversion; strongly disinclined: investors who are averse to taking risks. affect overall utilization. Capital Requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. The Company completed a restructuring of its secured convertible debt with the Laurus Master fund in April. This restructuring provided cash infusion of approximately $267,000 through increasing our secured convertible debt outstanding. The repayment terms were also restructured. The principal is being paid back over a two-year period beginning in July July: see month. 2003. The Company is also in the process of restructuring the payment terms of its debt outstanding with PowerCerv Corporation, Inc. Management Comments "Moving our headquarters from Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. to Huntsville will increase our momentum particularly in the federal business markets that we serve," said Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. Crippen Crippen is a surname, and may refer to:
n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our narrower service offerings, particularly our focus on federal business, will help to increase sales this year." "Having the highest consultant utilization and revenue per billable day in April gives me confidence that we are headed in the right direction." "In addition to our resolve to increase sales, the Company continues to closely monitor its spending to meet its goal of becoming cash flow positive in 2003," said Karen Surplus, chief financial officer. About Digital Fusion Digital Fusion is a business and information technology consulting Information technology consulting (IT consulting or business and technology services) is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. company helping its customers make the most of technology to access business information, enhance the performance of their human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and meet their business needs. Digital Fusion provides a range of services in business process and application strategy and development, including Enterprise Application Solutions, IT Consulting and IT Support and Integration. Based in the eastern U.S., Digital Fusion has 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 , Washington D.C., Philadelphia, Tampa, Orlando, Huntsville, and New Jersey. For additional information about Digital Fusion visit http://www.digitalfusion.com. Forward Looking Statements. All statements other than statements of historical fact included in this release 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. . When used in this release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, as well as assumptions made by and information currently available to the Company's management, identify forward-looking statements. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors including, but not limited to: the effect of business and economic conditions; the impact of competitive products and pricing; and capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties. Such statements reflect the current views of the Company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the operations, results of operations, growth strategy and liquidity of the Company.
Digital Fusion, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2003 2002
------------- -------------
Unaudited
-------------
ASSETS:
Current Assets:
Cash and cash equivalents $ 178 $ 653
Accounts receivable, net 1,024 978
Other current assets 63 87
------------- -------------
Total Current Assets 1,265 1,718
Property and equipment, net 113 185
Intangible assets, net 3,347 3,347
Other assets 21 28
------------- -------------
TOTAL ASSETS $ 4,746 $ 5,278
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable and accrued expenses $ 925 $ 951
Current maturities of long-term debt 501 808
------------- -------------
Total Current Liabilities 1,426 1,759
Accrued interest - long-term 4 86
Long-term debt, less current maturities 766 517
Pension obligation 280 280
------------- -------------
Total Liabilities 2,476 2,642
Stockholders' Equity 2,270 2,636
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 4,746 $ 5,278
============= =============
Digital Fusion, Inc.
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2003 and 2002
(Unaudited, in thousands, except per share amounts)
2003 2002
---------- ----------
Revenues $ 1,612 $ 2,809
Cost of services 1,334 2,181
---------- ----------
Gross profit 278 628
Operating expenses:
Selling, general and administrative 592 830
Severance and restructuring - (120)
Gain on forgiveness of debt - (1,539)
---------- ----------
Total operating expenses 592 (829)
---------- ----------
Operating loss (314) 1,457
Interest expense (income), net 52 10
---------- ----------
Loss before income taxes (366) 1,447
Income tax benefit - -
---------- ----------
Net income (loss) $ (366) $ 1,447
========== ==========
Earnings (loss) per share
Basic $ (0.05) $ 0.20
========== ==========
Diluted $ (0.05) $ 0.19
========== ==========
Weighted average common stock shares
outstanding
Basic 7,168 7,164
========== ==========
Diluted 7,168 7,624
========== ==========
ADJUSTED EARNINGS BEFORE INTEREST,
INCOME TAXES, DEPRECIATION, AMORTIZATION,
GAIN ON FORGIVENESS OF DEBT AND SEVERANCE AND
RESTRUCTURING:
Net income (loss) $ (366) $ 1,447
Interest expense, net 52 10
Depreciation 72 81
Income tax benefit - -
Severance and restructuring - non-cash (120)
Gain on forgiveness of debt - (1,539)
--------- ---------
$ (242) $ (121)
========= =========
The adjusted earnings before interest, income taxes, depreciation, amortization, gain on forgiveness of debt and severance and restructuring is provided to show the impact on earnings excluding these items. The Company uses this non-GAAP financial measure to help it project its cash usage. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion