MPSI Reports Continued Softness in Second Quarter.
TULSA, Okla.--(BUSINESS WIRE)--Aug. 14, 2002
MPSI Systems Inc. (Pink Sheets:MPSI) today reported a net loss of $659,000 ($.23 per share) on revenues of $3.1 million as compared to a loss of $473,000 ($.16 per share) on revenues of $3.5 million for the same quarter in fiscal 2001. This loss brings the year to date loss to $785,000 ($.27 per share) on revenues of $7.1 million as compared to a loss of $849,000 ($.29 per share) on revenues of $7.3 million for the six months ended June 30, 2001. During the period of March through May 2002, MPSI reduced staff and closed certain foreign offices resulting in accruals of approximately $717,000 for severance and closure expenses during those months.
According to Ron Harper, MPSI's CEO, the Company's target markets in the U.S. continue to soften largely on the basis of economic uncertainties and the ripple effect that has had on certain global economies. In recognition of the soft business climate MPSI has taken steps to both reduce expenses and diversify sales activities. "Softness in the U.S. economy has triggered a wave of budget cutbacks in many of the large petroleum-oriented convenience retailers MPSI serves. Likewise, new business sales cycles have lengthened considerably," said Harper. Since the majority of MPSI's business has traditionally been concentrated in large petroleum retailers, and activities in the U.S. account for a significant percentage of total corporate revenues, both completed business and new bookings have suffered in the first half of the year. Harper went on to say that MPSI anticipates that business softness in the U.S. will continue for the remainder of this fiscal year. New U.S. sales diversification efforts, targeting not only smaller convenience retailers in the petroleum sector but retailers outside MPSI's traditional target market, have been initiated with the expectation of lessening MPSI's dependence on large retailers and on petroleum-oriented retailers in the future. Additional sales diversification efforts will be undertaken throughout the remainder of 2002 and MPSI will continue to focus on the emerging economies where some business success is being met by our sales force.
MPSI is a global provider of spatial decision support systems (featuring proprietary software and databases), implementation consulting services, and information services. Its products and services are designed to meet the business planning needs of its clients in the area of convenience retailing. The Company's common stock trades on the Pink Sheets under the symbol MPSI.
Portions of this document may include "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results include, among others, uncertainties inherent in the development and successful application of products, product demand, service demand, market acceptance, the effect of economic conditions particularly in target markets and within this industry, the impact of competitive products and pricing, commercialization and technological difficulties, and the ability of the Company to implement its business strategy.
For the Quarter Ended June 30, 2002 2001 ------------ ------------ Revenues $ 3,060,000 $ 3,505,000 Net Loss $ (659,000) $ (473,000) Net Loss Per Common Share: Basic $ (.23) $ (.16) Diluted $ (.23) $ (.16) Average Common Shares Outstanding: Basic 2,912,000 2,912,000 Diluted 2,912,000 2,912,000 For the Six Months Ended June 30, 2002 2001 ------------ ------------ Revenues $ 7,083,000 $ 7,376,000 Net Loss $ (785,000) $ (849,000) Net Loss Per Common Share: Basic $ (.27) $ (.29) Diluted $ (.27) $ (.29) Average Common Shares Outstanding: Basic 2,912,000 2,912,000 Diluted 2,912,000 2,912,000
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|Comment:||MPSI Reports Continued Softness in Second Quarter.|
|Date:||Aug 14, 2002|
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