TeleComputing Announces First Quarter 2001 Financial Results.Business Editors/High-Tech Writers FORT LAUDERDALE, Fla. & OSLO, Norway--(BUSINESS WIRE)--May 1, 2001 -- Revenues at $3.2 million, up 113 percent over Q1 2000 and up 28 percent over Q4 2000; -- Consolidated operating expenses reduced 24 percent from $10.5 to $8.0 million; -- Net loss before taxes improves by 41 percent Q1 2001 over Q4 2000 from $-10.1 in fourth quarter to $-6.0 in first quarter; -- Norwegian gross margins improve to 49 percent, from 44 percent in Q4 2000 TeleComputing (Oslo Stock Exchange:TCO), the leading Nordic ASP with operating subsidiaries in Norway, Sweden and the US, announced results for the first three months of 2001. Operating revenues for the first quarter of 2001 increased 113 percent to $3.2 million, compared to the same period in 2000; compared to the fourth quarter of 2000, revenues increased 28 percent. Revenues directly associated with the provision of ASP services comprised 88 percent of total operating revenues. Additionally, the financial results of the U.S. and Swedish operation made up a bigger proportion of total revenues than in any previous quarter. Specifically, U.S., Sweden, and SPS combined revenues represented 16 percent of total revenues in 1Q 2001. Costs of Goods Sold in the first quarter 2001 were $2.0 million, compared to $1.0 million in the first quarter 2000, but equal to $2.0 million in fourth quarter of 2000. Operating costs for the period were $8.0 million. This represents an increase of less than 2 percent over the same period in 2000, but is 24 percent less than $10.5 million reported in fourth quarter 2000. Net loss before taxes for the first quarter of 2001 was $6.0 million down from a net loss before taxes of $10.1 million in fourth quarter 2000. According to Jason Donahue, president and CEO of TeleComputing, "These results indicate that TeleComputing's business model is both viable and moving in the right direction. We are pleased with the top line growth -- up 28 percent. In fact operating revenues have grown by an average of over 20 percent quarterly over the past four quarters. Further, we have managed to significantly reduce our operating expenses. I attribute these results to our focus on driving towards profitability and reducing unnecessary costs in each of our operating subsidiaries. In Norway, the most mature of our markets, we have signed up 14 new customers in the first quarter. In Sweden, our general manager, Johan Lindqvist, took command in early March and has already closed a deal with over 100 users. The US ASP and the SPS P&Ls, both under the direction of Alex Hawkinson, have now been completely restructured. The private label business is now up and running and in the US we have begun to meet our internal financial targets. Further, the SPS business has to date exceeded our growth expectations." TeleComputing reported that its 12-month contract backlog at the end of the first quarter was $13.8 million, an increase of 17 percent over fourth quarter 2000. The total outstanding contract backlog was $35.7 million, an increase of 28 percent over the fourth quarter. Additional first quarter highlights included: -- Increased number of total customers 11 percent; -- Released TECOS version 2.5, currently used by TeleComputing to activate new customers on Microsoft Windows 2000 and Microsoft exchange 2000; -- Purchased the ASP-based customer portfolio in Norway of Customax, furthering the market share consolidation begun with the Electric Farm deal announced in Q4 2000; -- Signed, under the auspices of its SPS P&L, an infrastructure planning project with Arribatec SA of Spain; -- Signed 14 deals in Norway including LOG and Medeco, valued at 55.3 MNOK (including Customax); -- Signed an agreement in Sweden with Stromma Turism valued at SEK 7.5 million; -- Signed an agreement to deliver to Broadband Office (BBO) a private label hosted Microsoft Exchange 2000 service offering. BBO is a leading provider of applications and communications services in the U.S. small to medium size business market; -- Signed a three-year deal in the US valued at $600,000 with Hospital Laundry Services; -- Began a pilot project in the US with Balize, Inc. to serve as the exclusive host and manager of the Balize Virtual Office. The pilot is valued at $150,000, though follow-on revenue associated with hosting in 2001 is valued at an estimated $1 million; -- Completed a share placement of 2.44 million new shares of common stock; -- Recruited in US Vice Presidents of Sales and Business Operations and filled all major opened senior management positions. About TeleComputing TeleComputing, founded in Norway in 1997, is the world's first ASP. In 2001, the Company also launched a global Service Provider Software business that provides infrastructure and consultative solutions to companies who wish to provide TeleComputing or private label ASP services to their own customer base. Both businesses leverage TECOS(TM) developed to manage Information Technology costs and complexity, while improving accessibility, reliability and security for over 400 satisfied customers worldwide. The Company has a presence in Norway, Sweden and the U.S. with more than 200 employees and seven offices. TeleComputing has strategic business relationships with Microsoft, Citrix Systems, Exodus and Compaq. For more information on TeleComputing, please visit www.TeleComputing.com.
TeleComputing ASA
Consolidated Statements of Operations
3 months 3 months Year
ended ended ended
(Amounts in March 31, 2001 March 31, 2000 Dec. 31, 2000
$000) -------------- -------------- --------------
Revenues
ASP Services $ 2.733 $ 1.245 $ 7.234
Other Revenues 473 260 466
Total Operating
Revenues 3.206 1.505 7.700
Cost of Sales
Direct costs of
ASP services 1.746 891 5.370
Direct costs of
other revenues 220 167 387
Total cost of sales 1.966 1.058 5.757
Gross profit 1.240 447 1.943
Operating Expenses
Compensation 4.916 4.497 18.975
Other operational and
administrative costs 2.076 2.914 14.682
Depreciation and
amortization 966 515 2.780
Total operating
expenses 7.958 7.926 36.437
Operating loss (6.718) (7.479) (34.494)
Other Income/(Expense)
Interest, net 410 609 2.141
Other income/(expense) 323 117 (1.070)
Other income/(expense) 733 726 1.071
Loss before Income
Taxes (5.985) (6.753) (33.423)
Income tax benefit/
(expense) 147 (4) 4.804
Net Loss $ (5.838) $ (6.757) $ (28.619)
Loss per Share (0,23) (0,31) (1,22)
Weighted average common
shares outstanding 25.614 22.053 23.439
TeleComputing ASA
Consolidated Balance Sheet
(unaudited)
(Amounts in March 31, 2001 March 31, 2000 Dec. 31, 2000
$000) -------------- -------------- --------------
ASSETS
Non-current assets
Deferred Tax Asset 4.780 - 4.781
Intangible Assets 1.862 1.297 1.842
Total intangible
assets 6.642 1.297 6.623
Property, Plant and
Equipment, net 8.677 5.788 8.230
Financial non-current
assets 74 - 70
Total non-current
assets 15.393 7.085 14.923
Current Assets
Inventory 40 35 42
Accounts Receivable 1.443 566 1.078
Other current assets 504 1.732 212
Prepaid expenses 527 577 349
Cash and Cash
Equivalents 33.161 40.588 28.533
Total Current
Assets 35.675 43.498 30.214
TOTAL ASSETS $ 51.068 $ 50.583 $ 45.137
LIABILITIES AND SHAREHOLDERS EQUITY
Shareholders Equity
Common stock $ 703 $ 595 $ 647
Paid-in premium
reserve 44.973 41.793 38.019
Total Shareholders
Equity 45.676 42.388 38.666
Long-Term Debt
Capital lease
obligations 1.771 780 1.986
Other long-term
Debt 66 - 66
Total Long-Term
Debt 1.837 780 2.052
Current Liabilities
Trade accounts
payable 1.519 2.546 2.267
Taxes, including
other social
security 1.258 231 1.850
Other current
liabilities 778 4.638 302
Total Current
Liabilities 3.555 7.415 4.419
TOTAL LIABILITIES
AND EQUITY $ 51.068 $ 50.583 $ 45.137
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