Pomeroy IT Solutions, Inc. Reports Fiscal 2006 Results.Fourth Quarter 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 $0.12 HEBRON Hebron, city (2003 est. pop. 155,000), the West Bank, called Al-Khalil in modern Arabic. Hebron is situated at an altitude of 3,000 ft (910 m) in a region where grapes, cereal grains, and vegetables are grown. , Ky. -- Pomeroy Pomeroy may refer to:
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 :PMRY PMRY Pomeroy IT Resources (stock symbol) ) a technology and services solution provider, today reported fiscal 2006 year end revenue of $631.6 million and earnings per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of $0.09. For the fourth quarter, the Company reported revenue of $161.9 million and earnings per fully diluted share of $0.12. "During 2006, we focused on moving forward. We improved gross margins, reduced costs and increased cash flow," said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and E. Pomeroy, Pomeroy IT Solutions, President and Chief Executive Officer. "During the fourth quarter we had our third sequential quarterly increase in product revenue. Revenue growth from our increasing sales momentum needs to be our top priority in 2007," said Pomeroy. "We expect revenue growth of three to seven percent for 2007 and earnings per share of $0.60 to $0.70," added Pomeroy.
Consolidated Financial Results
Full Year 2006 Financial Results
-- Revenue was $631.6 million compared to $714.7 million in fiscal
2005.
-- Service revenue was $258.4 million compared to $231.3 million
in fiscal 2005, an increase of 11.7 percent or $27.1 million.
The increase in service revenues relates primarily to the
growth from new service agreements.
-- Product revenue was $373.2 million compared to $483.4 million
in fiscal 2005, a decline of $110.2 million. This decline was
due primarily to continuing competitive pressure in the
marketplace, reduction in IT spending by our customers and
delays in IT project deployments by our customers.
-- Gross Profit Margin was 14.6 percent compared to 12.8 percent in
fiscal 2005.
-- Service revenue gross margin was 24.2 percent compared to 24.1
percent in fiscal 2005.
-- Product revenue gross margin was 7.9 percent compared to 7.5
percent in fiscal 2005.
-- Total Operating Expense was $89.3 million compared to $107.6
million in fiscal 2005, a decrease of $18.3 million. The decrease
is primarily the result of a decrease in restructuring charge of
$2.2 million and a reduction in the goodwill charge of $12.5
million.
-- Net Income (Loss) was $1.1 million or $0.09 per fully diluted share
compared to $(10.7) million or $(0.85) in fiscal 2005.
-- Other Financial Information
-- Debt - $ 0
-- Capital Expenditures - $ 2.3 million
-- Cash Flow From Operating Activities - $30.1 million
-- Purchases of Company stock $ 2.5 million
-- Working Capital - $90.5 million
Fourth Quarter 2006 Financial Results
-- Revenue was $161.9 million compared to $171.9 million in the fourth
quarter 2005.
-- Service revenue was $63.3 million compared to $64.1 million in
the fourth quarter 2005, a decrease of $0.8 million.
-- Product revenue was $98.6 million compared to $107.8 million in
the fourth quarter 2005, a decline of $9.2 million. This
decline was due primarily to continuing competitive pressure in
the marketplace, reduction in IT spending by our customers and
delays in IT project deployments by our customers.
-- Gross Profit Margin was 14.6 percent compared to 12.4 percent in
the fourth quarter 2005.
-- Service revenue gross margin was 25.3 percent compared to 20.9
percent in the fourth quarter 2005.
-- Product revenue gross margin was 7.6 percent compared to 7.3
percent in the fourth quarter 2005.
-- Total Operating Expense was $20.7 million compared to $40.1 million
in the fourth quarter 2005, a decrease of $19.4 million. The
decrease is primarily the result of a decrease in the goodwill
charge of $16.0 million, employee benefit costs, professional fees
and other expenses.
-- Net Income (Loss) was $1.5 million or $0.12 per fully diluted share
compared to $(12.1) million or $(0.96) in the fourth quarter 2005.
Internal Control Assessment The Company has completed its assessment of its internal controls and believes that there are no material weaknesses in its internal control over financial reporting for the year ended January January: see month. 5, 2007. During the fourth quarter, the Company has remediated the four material weaknesses that previously existed. Goodwill The Company has completed its annual goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. test for the year ended January 5, 2007. The goodwill impairment analysis indicated there was no goodwill impairment for the year ended January 5, 2007 as the fair value of the reporting unit slightly exceeded the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the reporting unit. The Company considered various factors in determining the fair value of the reporting unit including discounted cash flows from projected earnings, values for comparable companies and the market price of the Company's common stock. Conference Call To participate in a conference call and question and answer session with senior management regarding the fiscal 2006 results, call 877-842-7108 using passcode 3184711 at 4:30 p.m. (ET) on Tuesday Tuesday: see week. , March 20, 2007. For your convenience, a replay will be available shortly after the call. This replay will available after the call by dialing 1-800-642-1687. About Pomeroy IT Solutions, Inc. As an international technology services and solutions provider, Pomeroy IT Solutions unites core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. services and technology sourcing provider set the Company apart as a unique, one-stop alternative. This combination helps its Fortune 1000, government, and mid-market clients realize their business goals and objectives by leveraging information technology to simplify complexities, increase productivity, reduce costs and improve profitability. 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. Certain of the statements in the preceding paragraphs regarding financial results constitute forward-looking statements. These statements related to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our markets' actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward looking statements. These risks and other factors you should specifically consider include but are not limited to: changes in customer demands or industry standards, existing market and competitive conditions including the overall demand for IT products and services, the nature and volume of products and services anticipated to be delivered, the mix of the products and services businesses, the type of services delivered, the ability to successfully attract and retain customers, sell additional products and service to existing customers, the ability to timely bill and collect receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , the ability to maintain a broad customer base to avoid dependence on any single customer, the need to successfully attract and retain outside consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , new acquisitions by the Company, terms of vendor agreements and certification programs and the assumptions regarding the ability to perform there under, the ability to implement the company's best practices strategies, the ability to manage risks associated with customer projects, adverse or uncertain economic conditions, loss of key personnel, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the ability to attract and retain technical and other highly skilled personnel. In some cases, you can identify forward-looking statements by such terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", "continue", "projects", "intends", "prospects", "priorities", or negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Non-GAAP Financial Measures The non-GAAP financial measures contained in this earnings press release exclude the charge for write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of goodwill and stock based compensation expense. The Company uses these measures for planning and forecasting its future business, as well as analyzing such forecasts against past performance. In addition, excluding these charges enhances the Company's understanding of trends developing in its operations, as well as its performance in its market and against its competitors. The Company believes that providing non-GAAP net income measures that exclude such items, best allows investors to understand the Company's ongoing business activities during the quarter. The Company believes that inclusion of certain non-GAAP financial measures provides comparability to other publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . The non-GAAP financial measures should not be considered as a substitute for, or preferable to, measures of financial performance prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and may be different from non-GAAP financial measures used by others. The Company believes that these non-GAAP financial measures provide an additional tool for investors to evaluate its ongoing operating results and trends. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures as detailed below: [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion