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Conversion Services International Announces First Quarter Results
-Company Announces Adjustment of Year End Financial Statements Related to the Accounting for Warrants; No Impact on Revenues or Cash Items-
EEAST HANOVER, N.J. (May 22, 2006) - Conversion Services International, Inc. (AMEX: CVN), 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 first quarter ending March 31, 2006.
Revenues for the first quarter 2006 increased 9.5% over results from first quarter 2005, to $6.8 million from $6.2 million. Conversion Services International (CSI) reported an operating loss of $1.4 million, versus an operating loss of $1.3 million in the comparable prior year period, and a net loss of $4.9 million, compared to a net loss of $2.8 million in the first quarter of last year. The current period loss is the result of a loss from continuing operations of $6.9 million, partially offset by the receipt of $2.05 million as a result of the sale of substantially all the assets of Evoke Software Corporation to Similarity Systems.
CSI also announced that due to a computational error, it was restating the consolidated financial statements as of and for the year ended December 31, 2005 to revise the accounting treatment for the recorded gain on financial instruments. An incorrect stock price was previously used in the valuation of the liability for the warrants to purchase common stock issued to Laurus Master Fund, Ltd. and the compound embedded derivative liability at December 31, 2005. These adjustments have no impact on revenues or on any cash items. Additional information can be found in CSI's amended Annual Report on Form 10-KSB/A for the year ended December 31, 2005 being filed with the SEC.
Scott Newman, CSI's President, CEO and Chairman, commented, "CSI is well positioned for accelerating revenue growth and profits during the course of 2006. In the first three months of this year, we secured 25 new consulting engagements. We remain committed to running our business profitably long-term and improving stockholder value. Demand for the type of Business Intelligence services we provide is strong and we have established ourselves as a credible player in the marketplace as evidenced by our inclusion in Gartner Inc.'s recent Magic Quadrant for Business Intelligence Implementation Services, North American, 2006.1"
1] Gartner, Inc., "Magic Quadrant for Business Intelligence Implementation Services, North America, 2006," by Alex Soegarto and Bill Hostmann, 3 March 2006.
About Conversion Services International, Inc.
A Note on Forward-Looking Statements
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