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Conversion Services International Announces First Quarter Results
EAST HANOVER, N.J., May 20, 2005 - Conversion Services International, Inc. (OTC Bulletin Board: CSII; "CSI"), a premier professional services firm focused on delivering the value in business intelligence, data warehousing and data management solutions to Global 2000 organizations and other businesses, announced results of operations for the first quarter ended March 31, 2005. (See attached tables)
First quarter revenues increased 31% to $6.9 million from $5.3 million in the first quarter of last year. Gross profit increased 60% to $2.3 million from $1.4 million in the comparable period last year. As a result of 1) greater selling and marketing expenses primarily due to increased payroll expenses associated with the DeLeeuw Associates and Evoke Software acquisitions, 2) higher general and administrative expenses primarily associated with professional fees incurred as a public company and operating costs from Evoke, and 3) new research and development costs and increased depreciation and amortization related to the companies CSI acquired during 2004, CSI reported a net loss of $3.2 million compared to a net loss of $0.4 million during the first quarter of 2004.
Scott Newman, CSI's President, Chief Executive Officer and Chairman, commented, "We are pleased to report that our initiatives with Global 2000 companies produced continued strong revenue growth during the quarter. In terms of future business, in the first three months of the year we secured 24 new consulting engagements. Our gross margin also improved, to 33.1%, up from 27.0% in the first quarter of 2004, due to our shift to higher-level projects that carry greater hourly billing rates and gross margins."
Mr. Newman continued, "We are also focused on controlling our operating expenses. We are optimistic about CSI's long-term prospects as a leader in data warehousing and business intelligence and look forward to reporting on our continued development."
About Conversion Services International, Inc.
A Note on Forward-Looking Statements
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