|
|
|
|
Conversion Services International Announces Third Quarter Results
EAST HANOVER, N.J., November 21, 2005 - Conversion Services International, Inc. (AMEX:CVN), 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, today announced results of operations for the third quarter and nine months ended September 30, 2005.
Revenues for the third quarter increased 26.2% to $7.7 million from $6.1 million in the third quarter of 2004. Conversion Services International (CSI) reported an operating loss of $1.6 million, versus an operating loss of $0.7 million in the comparable prior year period, and a net loss of $3.7 million, compared to a net loss of $3.4 million in the third quarter of last year.
Scott Newman, CSI's President, CEO and Chairman, commented, "We are pleased with the steady revenue growth achieved in the quarter. During the quarter, we completed and began integrating two strategic acquisitions - McKnight Associates, Inc., a renowned business intelligence and data warehouse consultancy, and Integrated Strategies, Inc., a professional services firm best known for its large-scale merger integration management for the financial services markets. These acquisitions began contributing to our revenues in the third quarter, and should have a greater impact on fourth quarter revenues.
"We continue to pursue additional external growth in our highly fragmented marketplace. According to Gartner, Inc., the Business Intelligence solutions market in North America is expected to grow from $9.7 billion in 2005 to $11.4 billion in 2008. The landscape for acquisitions is attractive and producing a healthy pipeline of potential transactions for CSI."
Mr. Newman further stated, "In order to focus solely on growing our professional services practices, during the third quarter we essentially exited the software product business by selling Evoke Software. Excluding the software and support and maintenance revenues associated with Evoke in the third quarters of 2004 and 2005, our total revenues increased 24% in the current period. Our gross profit margin declined during the quarter due to the inherently higher margins associated with software sales, as well as a seasonal decrease in demand for our services, but we are working to return our gross margin to historical levels in the coming quarters. Importantly, as a result of the Evoke divestiture and our recent cost efficient acquisitions, we were able to begin decreasing operating expenses as a percentage of revenues. In fact, our operating expenses also declined in dollar amount in the third quarter."
Mr. Newman continued, "During the quarter, we listed the Company's shares on the American Stock Exchange and completed a 1-for-15 reverse stock split. Our stock is now eligible for purchase by a broader range of investment funds, and we believe our shares outstanding better reflect the size of the Company."
Mr. Newman concluded, "The third quarter represented a period of important steps in CSI's development. We are optimistic about CSI's outlook based on our core business, recent strategic and accretive acquisitions, and prospects for further external growth."
Click here to view CSI's Condensed Consolidated Statements of Operations (.pdf)
About Conversion Services International, Inc.
A Note on Forward-Looking Statements
|
|
|
