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Edison, NJ, May 14, 2007 - Intelligroup Inc., a consulting, business optimization, and outsourcing firm serving global corporations, today reported financial results for its first quarter 2007. Such results are included at the end of this release and in the periodic report on Form 10-Q for the period ended March 31, 2007, as filed with the United States Securities and Exchange Commission.
First Quarter Highlights:
- Revenue: Year over Year revenue grew 12.1%; Quarter over Quarter revenue grew by a moderate 2% .
- Utilization rates: Utilization rates increased to 69% in the first quarter of 2007 from 68% for the fourth quarter of 2006 and 66% for the first quarter of 2006.
- New Customers: 30 new customers were added globally in the first quarter.
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First Quarter performance:
The Company reported revenues in the first quarter of 2007 of $32.7 million, which marks a 2% increase from $32.0 million in the fourth quarter of 2006 and a 12.1% increase from $29.1 million in the first quarter of 2006. The Company's average bill rates were relatively flat in the first quarter of 2007 as compared with the fourth quarter of 2006 and the first quarter of 2006. The Company reported gross margin of 19.8% for the first quarter of 2007 which marks a decrease from 23.3% for the fourth quarter of 2006 and 27.2% for the first quarter of 2006. The Company reported an operating loss of $3.0 million in the first quarter of 2007 which marks an increase from $2.6 million in the fourth quarter of 2006 and $1.8 million in the first quarter of 2006.
About Intelligroup
Intelligroup is a vertically-led ERP focused life cycle management partner serving global corporations as well as public sector clients. Its proven Global delivery model has enabled customers to accelerate results and reduce costs significantly. With deep expertise in industry-specific enterprise solutions, Intelligroup has earned a reputation for consistently exceeding client expectations. Intelligroup develops implements and supports IT solutions for some of the largest U.S. school systems and global corporations including Hershey, Abbott Labs, Eastman Chemical, Hitachi, and Kimball International.
For more information please visit our website at http://www.intelligroup.com
Safe Harbor Statement
Certain statements contained herein, including statements regarding the development of services and markets and future demand for services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995).
Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, variability of quarterly operating results, continued uncertainty of the IT market and revenues derived from application management business, uncertainty in revenues for traditional professional services offerings, loss of one or more significant customers, reliance on large projects, concentration of revenue, unanticipated costs associated with continued litigation, ability to attract and retain professional staff, dependence on key personnel, ability to manage growth effectively, risks associated with strategic partnerships, various project-associated risks, including termination with short notice, substantial competition, general economic conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors detailed under the caption "Risk Factors" in Intelligroup's SEC filings. Intelligroup disclaims any intention or obligation to update forward looking statements as a result of developments occurring after the date of this press release.
Intelligroup and the Intelligroup logo are registered trademarks and 'Creating the Intelligent Enterprise', 4Sight, 4Sight Plus, ASPPlus, myADVISOR, ASPPlus Power Upgrade Services and Uptimizer are service marks of Intelligroup in the U.S. and other countries. All other trademarks and company names mentioned are the property of their respective owners.
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INTELLIGROUP,
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except par value) |
| Assets |
March
31, 2007 |
December
31, 2006 |
| CURRENT ASSETS |
|
|
| Cash and cash equivalents |
$8,328 |
$12,277 |
| Short-term investments |
3,140 |
2,227 |
| Accounts receivable,
less allowance for doubtful
accounts of $1,066 and
$991 at March 31, 2007
and December 31, 2006,
respectively |
18,439 |
20,477 |
Unbilled services, less
allowance for doubtful
accounts of $891 at March
31, 2007 and December
31, 2006
|
12,124 |
9,464 |
Prepaid expenses
|
1,098 |
957 |
Prepaid taxes
|
-- |
170 |
| Other current assets |
1,233 |
1,296 |
| Total current
assets |
44,362 |
46,868 |
| Property and equipment,
net |
5,411 |
5,472 |
| Deferred taxes and other
assets |
2,740 |
2,203 |
| Total assets |
$52,513 |
$54,543 |
| LIABILITIES
AND SHAREHOLDERS' EQUITY |
| CURRENT Liabilities |
|
|
| Line of credit borrowings |
$4,946 |
$4,959 |
| Accounts payable |
3,984 |
3,078 |
| Accrued payroll and
related taxes |
11,388 |
11,301 |
Accrued expenses and
other current liabilities
|
5,265 |
4,695 |
Deferred revenue
|
1,796 |
2,294 |
| Income taxes payable |
122 |
-- |
Current portion of obligations
under capital lease
|
410 |
483 |
| Total current
liabilities |
27,911 |
26,810 |
Obligations under capital
leases, net of current
portion
|
566 |
552 |
Deferred revenue, net
of current portion
|
660 |
686 |
| Other long-term liabilities |
63 |
101 |
| Total liabilities |
$29,200 |
$28,149 |
| Commitments
and contingencies |
| Shareholders'
Equity |
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Preferred stock, $.01
par value, 5,000 shares
authorized, none
issued or outstanding |
-- |
-- |
| Common stock, $.01 par
value, 50,000 shares authorized,
41,933 shares issued and
outstanding at March 31,
2007 and December 31,
2006 |
419 |
419 |
| Additional paid-in capital |
70,028 |
69,702 |
| Accumulated deficit |
(47,547) |
(43,753) |
Accumulated other comprehensive
loss
|
413 |
26 |
| Total shareholders'
equity |
23,313 |
26,394 |
Total liabilities and
shareholders' equity
|
$52,513 |
$54,543 |
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INTELLIGROUP,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands except per share data)
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THREE
MONTHS ENDED March 31, |
| |
2007 |
2006 |
| Revenue |
$32,700 |
29,171 |
| Cost of revenue |
26,240 |
21,247 |
| Gross profit |
6,461 |
7,924 |
Selling, general and
administrative expenses
|
8,911 |
9,150 |
Depreciation and amortization
|
598 |
579 |
| Total operating expenses |
9,510 |
9,729 |
| Operating loss |
(3,049) |
(1,805) |
Interest expense, net
|
(192) |
(104) |
| Other income (expense) |
62 |
(24) |
| Loss before income tax
provision |
(3,179) |
(1,933) |
Provision for income
taxes
|
615 |
42 |
| Net loss |
$(3,793) |
$(1,975) |
| Loss per share: |
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| Basic net loss per
share |
$(0.09) |
$0.06 |
Weighted average number
of common shares outstanding
- basic
|
41,933 |
35,176 |
Diluted net loss per
share
|
$(0.09) |
$(0.06) |
Weighted average number
of common shares outstanding
- diluted
|
41,933 |
35,176 |
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