National TechTeam, Inc. Announces Revised Q4, 1996 and Q1-3, 1997 Results
21 November 1997
National TechTeam, Inc. Announces Revised Results For Fourth Quarter 1996 and the First Three Quarters of 1997
DEARBORN, Mich., Nov. 21 -- National TechTeam, Inc.,
, announced on November 20 restated results of operations for
the fourth quarter 1996 and the first two quarters 1997. The restatements
relate to: (1) certain revenues related to contemporaneous purchase/sale
transactions between the Company and the licensees of its software products
occurring in the fourth quarter 1996 and the first quarter 1997; (2) the
impact of those restatements on subsequent quarters; and (3) certain
compensation related adjustments.
Additionally, the Company's July 1997 acquisition of Compuflex Systems,
Inc., which has been accounted for as a pooling of interests, required that
the consolidated financial statements be restated to include the accounts of
Compuflex for all periods.
The schedule that follows summarizes the impact of the foregoing
restatements.
The Company also announced that its Form 10-Q for the third quarter 1997
was filed with the Securities and Exchange Commission on November 19, 1997.
The following table sets forth the revised results for the third quarter 1997
and first nine months of 1997.
National TechTeam, Inc.
Third Quarter Results of Operations
As Revised on November 20, 1997
Quarter Ended September 30 1997 1996
Revenues $20,494,586 $19,687,472
Income/(Loss) Before Tax Provisions (1,523,206) 1,887,692
Tax Provisions (533,364) 792,000
Net Income/(Loss) (969,842) 1,095,692
Primary and Fully Diluted Earnings/(Loss)
Per Share (0.06) 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 $56,287,288 52,755,210
Income Before Tax Provisions (1,567,369) 5,156,879
Tax Provisions (343,164) 2,532,300
Net Income/(Loss) (1,224,205) 2,624,579
Primary and Fully Diluted Earnings
Per Share (0.08) 0.22
Weighted Average Number of Common
Shares and Common Share
Equivalents Outstanding
Primary 16,053,730 12,151,408
Fully Diluted 16,053,730 12,189,941
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."
National TechTeam, Inc.
Summary of Restatements
Announced November 20, 1997
Calendar
1996 Quarters Ended Year
March 31, June 30, Sept. 30, Dec. 31, 1996
Consolidated Statement of Operations
Revenues
As previously
reported $14,407,611 $15,831,227 $18,390,472 $20,521,686 $69,150,996
Effect of
correction of
previously
issued
financial
statements -- -- -- (2,263,840) (2,263,840)
Effect of
Compuflex
pooling of
interests 1,166,000 1,662,900 1,297,000 1,203,000 5,328,900
As restated $15,573,611 $17,494,127 $19,687,472 $19,460,846 $72,216,056
Net income/(loss):
As previously
reported $865,731 $1,044,156 $962,692 $1,901,053 $4,773,632
Effect of
correction of previously
issued financial
statements -- -- -- (1,833,243) (1,833,243)
Effect of Compuflex
pooling of
interests 80,000 (461,000) 133,000 50,000 (198,000)
As restated $945,731 $583,156 $1,095,692 $117,810 $2,742,389
Net income/(loss)
per share:
As previously
reported $0.08 $0.09 $0.08 $0.13 $0.38
Effect of correction
of previously
issued financial
statements -- -- -- (0.12) (0.12)
Effect of Compuflex
pooling of
interest -- (0.04) 0.01 0.01 (0.02)
As restated $0.08 $0.05 $0.09 $0.02 $0.24
1997 Quarters Ended Year to Date
March 31 June 30 June 30, 1997
Revenues:
As previously reported $20,715,682 $18,450,825 $39,166,507
Effect of correction
of previously issued
financial statements (3,485,990) 112,185 (3,373,805)
Effect of Compuflex
pooling of interests 1,346,900 4,745,940 6,092,840
As restated $18,576,592 $23,308,950 $41,885,542
Net income/(loss):
As previously reported $1,817,827 $79,766 $1,897,593
Effect of correction
of previously issued
financial statements (2,187,290) 35,334 (2,151,956)
Effect of Compuflex
pooling of interests 5,100 (194,796) (189,696)
As restated $(364,363) $(79,696) $(444,059)
Net income/(loss) per share:
As previously reported $0.12 $0.01 $0.13
Effect of correction of
previously issued
financial statements (0.15) 0.00 (0.15)
Effect of Compuflex
pooling of interests 0.00 (0.02) (0.02)
As restated $(0.03) $(0.01) $(0.04)
Consolidated Statement
of Financial Position December 31, March 31, June 30,
1996 1997 1997
Current assets:
As previously reported $98,900,418 $96,571,229 $94,739,463
Effect of correction
of previously issued
financial statements 494,060 435,660 415,660
Effect of Compuflex
pooling of interests 1,079,300 1,216,000 1,250,568
As restated $100,473,778 $98,222,889 $96,405,691
Current liabilities:
As previously reported $8,340,959 $7,596,316 $6,023,040
Effect of correction of
previously issued
financial statements 748,600 404,800 404,800
Effect of Compuflex
pooling of interests 796,400 861,400 1,669,803
As restated $9,885,959 $8,862,516 $8,097,643
Retained earnings:
As previously reported $10,856,604 $12,674,431 $12,754,197
Effect of correction
of previously issued
financial statements (1,833,243) (4,020,533) (3,985,199)
Effect of Compuflex
pooling of interests (2,556,500) (2,551,400) (2,892,887)
As restated $6,416,861 $6,102,498 $5,876,121
Total assets/liabilities and shareholders' equity:
As previously reported $111,962,058 $117,465,200 $116,436,798
Effect of correction
of previously issued
financial statements 1,028,270 2,155,047 2,136,947
Effect of Compuflex
pooling of interests 3,845,200 3,879,300 4,131,013
As restated $116,835,528 $123,499,547 $122,704,658
SOURCE National TechTeam, Inc.