ECsoft Group Reports Record Results for 1996.LONDON--(BUSINESS WIRE)--Feb. 18, 1997--ECsoft Group plc ("ECsoft" or the "Company"; Nasdaq: ECSGY) today announced increased revenues and net earnings for its fourth quarter and year ended Dec. 31, 1996. Revenues increased by 42% percent to $50.6 million from $35.6 million for 1995. Net income for the year rose to $2.2 million from $0.1 million for 1995. Earnings per share were $.41 for 1996 compared to $.01 for 1995. Fourth quarter revenues increased 40% to $14.9 million from $10.6 million for the same period in 1995. Net income for the quarter was $0.84 million, or $.15 per share. "Our growth in 1996 reflects ECsoft's ability to respond to the demands of the rapidly developing IT services market in Europe," said Terje Laugerud, 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. of ECsoft Group plc. "We are witnessing an acceleration in the adoption of client/server and distributed computing (1) The use of multiple computers networked throughout a wide geographical area, or the world via the Internet, in order to solve a single problem. See grid computing. (2) The use of multiple computers in an enterprise rather than one centralized system. for mission-critical applications in the major corporations, while the continued strength of the underlying economies in our major territories is driving organizations to demand increasing competitive advantage from their IT investments. There is also a strong trend towards 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. of IT projects, especially where they involve leading-edge technologies and skills. Additionally, our customers are telling us that Year 2000 compliance and the European Monetary Union European Monetary Union An agreement by participating European Union member countries that includes protocols for the pooling of currency reserves and the introduction of a common currency. (EMU emu or emeu (both: ē`my  ), common name for a large, flightless bird of Australia, related to the cassowary and the ostrich. ) are increasingly
regarded as catalysts for the implementation of new solutions,"
Laugerud commented."1996 was a significant year for ECsoft, as we successfully increased our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , with strong growth in our distributed computing and electronic commerce services. We continued to serve a broad range of industries, while experiencing particular success in the high growth Retail and 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. sectors," said Laugerud. "During the year we continued to expand our business with existing accounts and secured a number of new customers, two of which generated enough revenue to join our top 10 accounts." "In the first quarter ECsoft acquired Digitus digitus /dig·i·tus/ (dij´i-tus) pl. di´giti [L.] a digit. dig·i·tus n. pl. dig·i·ti A digit. Ltd, which is now fully integrated with our UK operations. This move enhanced our market presence in the public sector and opened up a new business line in Demand Chain Management, which has already contributed 4.4% ($2.2 million) to our 1996 revenues," Laugerud continued. "Throughout Europe, we have continued to successfully recruit and retain highly skilled professional staff, increasing our workforce by 58% over the year." ECsoft provides 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. , applications development and system integration services to large European-based companies and organizations across a broad range of industries. It has a solid reputation for deploying proven leading technologies in rapidly implemented and 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. solutions for mission-critical business processes. Working through the flexible deployment framework of its Practicology(TM), ECsoft enables its customers to migrate from legacy environments to enterprise-class distributed systems Distributed systems (computers) A distributed system consists of a collection of autonomous computers linked by a computer network and equipped with distributed system software. and extend these into the market through electronic commerce using 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 and extranets. ECsoft's expertise also includes data warehousing See data warehouse. data warehousing - data warehouse and large scale application package implementation. Operating from 7 major offices in the United Kingdom, Norway, Denmark and Sweden, ECsoft currently has a workforce of 461, consisting of 388 employees and 79 independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. . More information about ECsoft can be found on the World Wide Web at http://www.ecsoft-group.com . The company's results will be discussed in a conference call on Wednesday 19 February, at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , 4:00 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 . The contact numbers for this call are: -0- U.S.A. 0800 234 9559 212/377 4119 U.K. 0500 701 087 +44(0)171 335 1400 The statements contained in this release that are not historical facts contain forward-looking information with respect to the plans, projections or future performance of the Company, the occurrence of which involve certain risks and uncertainties. Potential risks and uncertainties include, without limitation, continued competitive pressures in the marketplace; attracting and retaining technically skilled employees; the Company's ability to manage its growth; managing risks associated with customer projects; dependence on trends toward open systems computing computing - computer architecture and outsourcing; and the company's ability to develop information technology solutions that keep pace with rapid and continuing changes in computing technology, evolving industry standards and changing customer preferences. More information on potential factors that could affect the Company's financial results are included in the Company's filings with the Securities and Exchange Commission, particularly in the prospectus with respect to its public offering in December 1996. -0-
ECsoft Group plc
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands of U.S. dollars, except per share amounts, unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
1996 1995 1996 1995
Revenues: $14,867 $10,643 $50,570 $35,644
Operating expenses:
Cost of projects 10,103 7,190 35,804 25,505
Sales & marketing 1,406 687 4,348 2,865
General & administrative 1,819 1,276 6,293 4,784
Goodwill amortization 109 74 399 303
Non-recurring expense 0 0 0 1,325
Total operating expenses 13,437 9,227 46,844 34,782
Income (loss) from operations 1,430 1,416 3,726 862
Other income (expenses) 8 62 (43) 108
Income (loss)
before income taxes 1,438 1,478 3,683 970
Income taxes 599 340 1,536 918
Net income (loss) $839 $1,138 $2,147 $52
Net income per ordinary share 0.15 0.23 0.41 0.01
Shares used to compute
net income per ordinary share 5,712 4,999 5,178 4,999
ECsoft Group plc
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, unaudited)
31 December 31 December
1995 1996
ASSETS
Current assets :
Cash $1,955 $17,005
Restricted cash 1,073 1,934
Accounts receivable (net of allowances) 6,061 9,249
Other current assets 693 989
Total current assets $9,782 $29,177
Property & equipment, net 1,879 3,456
Intangible assets, net 5,373 11,113
Other non-current assets 843 434
Total assets $17,877 $44,181
LIABILITIES & SHARE HOLDERS EQUITY
Current liabilities :
Bank overdraft and short-term borrowings $153 $6
Loan Notes 2001 1,073 1,199
Accounts payable 2,449 2,112
Accrued liabilities 3,579 4,950
Current portion of lease obligations 335 687
Deferred revenues 1,264 2,299
Other current liabilities 1,192 3,145
Total current liabilities $10,045 $14,397
Non-current liabilities 3,845 1,026
Total liabilities $13,899 $15,423
Shareholders' equity :
Ordinary shares 6,514 5,667
Additional paid in capital 0 21,905
Retained earnings deficit (2,220) (76)
Cumulative translation adjustment (316) 1,262
Total liabilities and shareholders' equity $17,877 $44,181
Note to Editors: ECsoft Group plc Registered office: 269 High Street, Berkhamsted HP4 1EG, ENGLAND E-mail: info@ecsoft-group.com www: http://www.ecsoft-group.com . ECsoft(c), the ECsoft logo and Practicology(TM) are trademarks of ECsoft Group plc. CONTACT: ECsoft Group plc Peter Harris Peter Harris may refer to:
peter.harris@ecsoft-group.plc or Forbes Cook, +44 (0) 171 355 1101 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) forbes.cook@ecsoft-group.com 101 Wigmore Street Wigmore Street is a street in the City of Westminster, in the West End that runs for about 600 yards parallel and to the north of Oxford Street between Portman Square to the west and Cavendish Square to the east. , LONDON W1H 9AB Fax: +44 (0) 171 355 1101 |
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