Conversion Services International Announces Second Quarter Results
EAST HANOVER, N.J., August 19, 2005 – Conversion Services
International, Inc. (OTC Bulletin Board: CSII; "CSI"),
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 second quarter and six
months ended June 30, 2005. See
attached tables.
Revenues for the second quarter increased 14% to $7.4 million
from $6.5 million in the second quarter of 2004. Gross profit
increased at a higher rate, by 20%, to $2.6 million from $2.1
million in the comparable period last year. The Company incurred
greater selling and marketing, research and development, and depreciation
and amortization expenses that were largely related to Evoke Software,
which the Company sold in July 2005. CSI reported a net loss of
$3.3 million, which compares to a net loss of $1.1 million during
the second quarter of 2004.
Scott Newman, CSI’s President, Chief Executive Officer
and Chairman, commented, “Our Global 2000 client base continued
to generate growth during the quarter. In the six-month period,
revenues increased 21%, and the 28 new consulting engagements
that we secured during the quarter should produce continued top-line
growth in the second half of the year.
“In addition to organic growth, we expect second-half revenue
contribution from our recent acquisitions, which are also strategic
in nature. In late July, we acquired McKnight Associates, Inc.,
a renowned business intelligence and data warehouse consultancy.
McKnight expands our client base with such industry leading companies
as Coach, Commerzbank, USAA, and France Telecom. As Senior VP
of Data Warehousing for CSI, William McKnight’s vast experience
in the consumer products, retail, telecommunications, and healthcare
industries will help support future growth in these key segments.
Integrated Strategies, Inc., which we acquired in early August,
complements our March 2004 acquisition of DeLeeuw Associates by
broadening our merger integration management and business process
change practices. The addition of Integrated Strategies should
accelerate our ongoing organic business growth in the financial
services industry and expand our geographic footprint, especially
into the Midwest. Importantly, both companies joined CSI with
lean cost structures.”
Mr. Newman concluded, “The Evoke divestiture and our recent
cost efficient acquisitions should enable us to decrease operating
expenses significantly as a percentage of revenues, beginning
in the third quarter. In light of our base business and our recent
strategic and accretive acquisitions, we are optimistic about
CSI’s outlook.”
About Conversion Services International, Inc.
A Note on Forward-Looking Statements
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