Thinkpath reports second quarter 2001 results; Company expects 2001 full year revenue between $45 and $50 million

    TORONTO--Aug. 15, 2001--Thinkpath Inc. , an IT and engineering services firm, today announced financial results for the second quarter and six months ended June 30, 2001.
    Revenues for the second quarter of 2001 were $10 million, compared to $12.2 million in the second quarter of 2000. The company had a loss of $490,000 before interest, amortization, income tax, and other expenses compared to income of $930,000 for the second quarter of 2000. Net loss for the second quarter of 2001, including all non-cash charges and other expenses, was $1,300,000 or ($.09) per share, as compared to a profit of $320,000 or $.05 per share in the second quarter of 2000.
    Revenues for the first six months of 2001 were $20.7 million compared to $22 million for the first six months of 2000. Income before interest, amortization, income tax, and other expenses was $940,000 compared to $1,650,000 for the second quarter of 2000. Net loss for the first six months of 2001, including all non-cash charges and other expenses, was $1,500,000 or ($.11) per share, as compared to a profit of $340,000, or $.08 per share, for the first six months of 2000.
    Consistent with prior guidance provided in a press release dated July 24, 2001, the company expects that revenue for the full 2001 year will be in a range between $45 million and $50 million, representing an increase over 2000 revenue, depending on the timing of new contract start-ups.
    Commenting on the results, Declan French, Thinkpath's Chairman and CEO, stated, "The losses we incurred in the second quarter were partially due to a change in the sales mix. Several high margin projects were delayed until the fourth quarter and the company experienced an increase in low margin contracting sales. A substantial order book indicates that we can expect a very strong fourth quarter and that our revenues will meet our target of $45 to 50 million for the year."
    Restructuring charges were incurred as a result of severance obligations from downsizing efforts. Our cost cutting measures have now been finalized and we expect the benefits will be reflected in the fourth quarter."
    "Based on signed and known contracts to date, our web-based human capital management application, Njoyn, will be cash flow positive by the second quarter of 2002 and will be income positive by the third quarter of 2002.
    All dollar figures contained within this press release are in U.S. currency unless otherwise noted.

    About Thinkpath Inc.

    Thinkpath is a provider of IT & engineering services, offering a blended suite of outsourcing, recruiting, training and technology to enhance the resource performance of large and high-growth corporations. Thinkpath clients include Microsoft, General Motors, Goldman Sachs, and Cummins. Thinkpath has 500 employees in 18 offices across North America. Further information about the company, its services and products can be found at www.thinkpath.com.

    This press release contains certain forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.