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CONVERSION SERVICES INTERNATIONAL, INC. SECOND QUARTER REVENUES RISE 78%
EAST HANOVER, N.J. (August 24, 2004) - Conversion Services International, Inc. (OTCBB: CSII) ("CSI"), a leading provider of management consulting, business intelligence and data warehousing services and technology solutions for Fortune 1000 organizations and other businesses, today announced substantial quarter-over-quarter and sequential increases in revenues during the second quarter ended June 30, 2004.
Compared to the second quarter of 2003, revenues increased 78% to $6.5 million and rose 24% sequentially from the first quarter of 2004.
For the first six months of 2004, revenues grew 66% to $11.8 million as compared to the first half of 2003.
Scott Newman, CSI's President, Chief Executive Officer and Chairman, commented, "CSI's continued strong revenue performance results from a combination of internal and external growth. Our annual revenue run rate is now $32.0 million, up from $14.6 million at June 30, 2003. This is an exciting time in CSI's development, highlighted by a number of recent achievements."
In line with the Company's acquisition strategy, on June 29, 2004, CSI acquired substantially all the assets of Evoke Software Corporation, one of the leading providers of data discovery, profiling and quality management software. CSI has been successfully leveraging the Evoke Axio technology suite as a component of its 'best practices' methodology for the past several years to streamline data warehousing, business intelligence, data migrations, conversions and customer relationship management initiatives, reducing project lifecycle and cost as much as 90%, in certain circumstances, over traditional methods. Evoke has offices in the U.K., France, Germany and Spain, thus broadening CSI's international presence, which previously included operations in Turkey.
Other noteworthy second quarter 2004 accomplishments included securing 21 new consulting engagements from Fortune 1000 companies. The majority of these engagements were business intelligence initiatives, which underscores the interest level in this CSI offering. To support this level of client activity, consulting headcount grew from 125 as of June 30, 2003 to 191 at the close of the second quarter 2004.
Gross profit margin increased to 32.7% for the second quarter, up sequentially from 27.4% in the first quarter of 2004. The increase was due to a shift in the mix of business to higher level projects that have increased hourly billing rates, and higher gross margin percentages associated with them. In August 2004, CSI further strengthened its financial position by replacing a $3 million credit facility with a $6 million facility that carries more favorable terms, and obtaining $5 million in restricted cash via issuance of a convertible term note, from an institutional investor to fund CSI's acquisition strategy.
CSI's complete financial reports for the second quarter and six months ended June 30, 2004 are included in the Quarterly Report on Form 10-QSB filed on August 23, 2004 with the Securities and Exchange Commission.
About Conversion Services International, Inc.
A Note on Forward-Looking Statements
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