TENERA Announces Third Quarter Results and Management Change.
Revenue for the nine months ended Sept. 30, 1997 was $15.3 million with a net loss of $1.7 million or $0.17 net loss per share, compared to revenue of $18.9 million and a net loss of $565 thousand or $0.06 net loss per share for the comparable period in 1996. Although partially offset by lower direct costs and administrative expenses, the Company's lower revenue, and increased spending on software product and business development efforts in technologies subsidiary, resulted in the overall loss for the quarter and nine months ended Sept. 30, 1997.
Contracted backlog for active projects totaled an estimated $5.8 million as of Sept. 30, 1997, compared to $6.5 million as of June 30, 1997. During the third quarter, the Company received written contracts and orders having an estimated value of $4.6 million. The contracted sales activity primarily reflects the next three months' funding at the Department of Energy's Rocky Flats Environmental Technology Site ("Rocky Flats"), and an extension of a consulting contract with a large electric utility client.
The revenue decreased in the third quarter and first nine months of 1997, compared to a year ago, is primarily the result of a reduction in the Rocky Flats contract activity (due primarily to decreased funding at various DOE sites), partially offset by higher software revenue related to the National Railroad Passenger Corporation ("Amtrak") contract in the technologies subsidiary.
Direct costs were lower in the third quarter and first nine months of 1997, compared to a year ago, primarily as a result of the reduced revenue generation opportunities. General and administrative costs were lower in the third quarter and first nine months of 1997, as compared to the comparable periods in 1996, primarily reflecting lower administrative costs throughout the Company offset partially by increased sales staff and marketing expenditures in the technologies subsidiary.
These business development expenditures amounted to $347 thousand and $731 thousand in the third quarter and first nine months of 1997, respectively, compared to $88 thousand and $117 thousand for the same periods a year ago. The Company increased spending on the technologies subsidiary's software product development to $650 thousand in the third quarter, and $1.3 million in the first nine months of 1997 compared to $139 thousand and $396 thousand for the same periods a year ago.
As a part of the Company's ongoing efforts to control the significant amount of resources required by the Company's technologies subsidiary, the Board of Directors announced that, effective immediately, Michael Thomas will be focusing his efforts exclusively on that subsidiary. In that connection, Mr. Thomas has resigned from the Board and as Chief Executive Officer of the Company and will now be assisting the Board on a full time basis in maximizing the Company's investment in the technologies subsidiary. Members of senior management will assume Mr. Thomas' other responsibilities.
Statements contained in this press release which are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include fluctuations in customer demand, the timing and acceptance of new product introductions, and the availability of additional investment capital on terms favorable to the Company, or at all. Additional risks are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K filed on March 27, 1997.
TENERA Inc. provides performance improvement and computerized maintenance management software and consulting for U.S. Government agencies and capital asset intensive industries. TENERA is a provider of creative and effective solutions to operational problems leading to improve performance for its clients through offices in California, Colorado and Connecticut. -0-
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (In thousands, except per share amounts) Qtr Ended Nine Months Ended 9/30/97 9/30/96 9/30/97 9/30/96 Revenue $ 5,240 $ 5,586 $ 15,332 $ 18,878 Direct Costs 3,228 3,651 9,392 12,230 General and Administrative Expenses 2,209 2,595 6,580 7,207 Software Development Costs 662 139 1,315 395 Other Income 14 -- 35 21 Special Item -- -- -- 250 Operating Loss (845) (799) (1,920) (683) Interest Income, Net 23 43 96 118 Net Loss Before Income Tax Benefit $ (822) (756) (1,824) (565) Income Tax Benefit -- (76) (139) -- Net Loss $ (822) $ (680) $ (1,685) $ (565) Net Loss per Share $ (0.08) $ (0.07) $ (0.17) $ (0.06) Wtd. Average Shares O/S 10,123 10,192 10,123 10,267 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) Assets At 9/30/97 At 12/31/96 Cash and Cash Equivalents $ 1,457 $ 3,964 Accounts Receivable, Net 3,809 3,119 Other Current Assets 326 534 Total Current Assets 5,592 7,617 Property and Equipment, Net 403 323 Total Assets $ 5,995 $ 7,940 Liabilities and Stockholders' Equity Accounts Payable $ 901 $ 1,026 Accrued Compensation and Related Expenses 1,902 2,036 Total Current Liabilities 2,803 3,062 Total Shareholders' Equity 3,192 4,878 Total Liabilities and Shareholders' Equity $ 5,995 $ 7,940
CONTACT: TENERA Inc.
Jeffrey Hazarian/James Robison, 415/536-4744