National TechTeam, Inc. Announces Q3 Revenues and Earnings
30 October 1997
National TechTeam, Inc. Announces Revenues and Earnings For Third Quarter and First Nine Months 1997
DEARBORN, Mich., Oct. 30 -- National TechTeam, Inc.,
, today reported revenues and earnings for third quarter and the
first nine months 1997. For the quarter ended September 30, 1997, revenues
were $20,153,080, a 2.4% increase over the $19,687,472 reported for the third
quarter of 1996. The net loss for the quarter was $1,155,500, or $0.07 per
share, compared with net income of $1,095,692, or $0.09 per share, for the
corresponding quarter in 1996. Project delays for the Company's Call Center
Services, service interruptions by a major customer, and significant start-up
costs in connection with new contracts resulted in the third quarter 1997
loss.
For the first nine months of 1997, National TechTeam earned $742,094, or
$0.05 per share, on revenues of $59,319,587. This represents a 12.5% increase
in revenues and a decrease in earnings which were $52,749,102 and $2,624,579,
or $0.22 per share, respectively, in the first nine months of 1996.
For the third quarter, Call Center Services revenues decreased 11.7% to
$7,635,211 from $8,643,477 in the third quarter 1996. However, the number of
Call Center Services contracts increased to 41 as compared with 33 at
September 30, 1996. For the first nine months 1997, Call Center Services
revenues increased 25.3% to $28,863,058 from $23,030,396 in 1996. Revenues
for Corporate Services increased 13.3% to $12,517,869 in the third quarter of
1997 from $11,043,995 for third quarter 1996. For the first nine months 1997,
Corporate Computer Services revenue increased 2.5% to $30,456,529 from
$29,718,733 in 1996.
In making the announcement, William F. Coyro Jr., stated, "Demand for
TechTeam's services continues to be strong, and we believe the call center and
corporate computer service industries will continue to grow worldwide. We
also believe our fundamental business plan remains strong, and we are
confident about our strategy for increasing revenues and earnings in the
future. Our recently announced joint ventures with General Electric and the
Michigan Credit Union Association are the types of business that will drive
improved results. National TechTeam expects to see strong improvement in the
near term and positive earnings for the fourth quarter of 1997."
Quarter Ended September 30 1997 1996
Revenues $20,153,080 $19,687,472
Income/(Loss) Before Tax Provisions (1,804,564) 1,887,692
Tax Provisions (649,064) 792,000
Net Income/(Loss) (1,155,500) 1,095,692
Primary and Fully Diluted Earnings/(Loss)
Per Share (0.07) 0.09
Weighted Average Number of Common
Shares and Common Share Equivalents Outstanding
Primary 15,887,531 12,500,426
Fully Diluted 15,887,531 12,594,440
First Nine Months 1997 1996
Revenues $59,319,587 $52,749,102
Income Before Tax Provisions 1,411,390 5,156,879
Tax Provisions 669,836 2,532,300
Net Income 742,094 2,624,579
Primary and Fully Diluted Earnings
Per Share 0.05 0.22
Weighted Average Number of Common
Shares and Common Share Equivalents Outstanding
Primary 16,054,672 12,151,408
Fully Diluted 16,054,672 12,189,941
Note: All 1996 amounts have been restated for the purchase of Compuflex
Systems, Inc. which has been accounted for on the pooling of interests basis.
The foregoing contains forward-looking statements. The matters expressed
in such statements are subject to numerous uncertainties and risks including
but not limited to general economic conditions in the markets in which
TechTeam operates, fluctuation in demand for computer related services and
products, and current expectations of TechTeam or its management. Should one
or more of those uncertainties or risks materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described as forward-looking statements. TechTeam does not intend to update
those forward-looking statements.
National TechTeam, Inc. is a leading provider of information technology
outsourcing support services to large national and multi-national
corporations, government agencies and service organizations. The Company
offers its services through two global units: (i) Call Center Services, which
provides its clients with inbound telephone support for their computer product
and end-users and (ii) Corporate Computer Services, which provides
corporations with technical staffing (principally on-site help desk support),
systems integration, instructor-led and computer-based training. National
TechTeam is traded under the symbol "TEAM."
SOURCE National TechTeam, Inc.