EX-99.1 2 c72675exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
 

Exhibit 99.1

     
For further information, contact:
Timothy G. Rogers
Chief Financial Officer
Technology Solutions Company
312.228.4500
timothy_rogers@techsol.com
  TSC Logo

Technology Solutions Company Announces
2007 Fourth Quarter Financial Results

CHICAGO, IL — March 11, 2008 — Technology Solutions Company (TSC) (Nasdaq: TSCC) today announced its fourth quarter financial results for the quarter ended December 31, 2007.

Fourth Quarter Results

   
Revenues before reimbursements were $5.3 million for the fourth quarter of 2007, compared with $7.9 million for the fourth quarter of 2006, a decline of $2.6 million or 33 percent, but revenues before reimbursements for the fourth quarter only declined by $0.2 million, or 4 percent, from the $5.5 million realized in the third quarter of 2007. The 4 percent decline in revenue from the third quarter was less than the 13 percent decrease in number of billable days available

   
The net loss for the fourth quarter was $0.3 million, or ($0.12) per share, versus a net loss of $5.3 million, or ($2.10) per share, in the fourth quarter of 2006, an improvement of $1.98 per share, or 94 percent. In addition, the net loss per share improved by $0.77, or 87 percent from the ($0.89) loss per share realized in the third quarter of 2007.

   
Utilization for the fourth quarter of 2007 was 71 percent, as compared to 69 percent in the third quarter of 2007 and 68 percent for the fourth quarter of 2006.

   
Days sales outstanding were 54 days at December 31, 2007 as compared to 71 days at September 30, 2007, an improvement of 17 days, or 24 percent. Days sales outstanding improved by 23 days, or 30 percent from the 77 days realized at December 31, 2006.

   
Cash, cash equivalents and short-term investments at December 31, 2007 was $11.0 million, an increase of $0.3 million from the $10.7 million as of September 30, 2007.

 

1


 

Business Commentary
Milton G. Silva-Craig, CEO, stated: “Several of the initiatives put in place at the beginning of 2007 are showing signs of progress. From a product development perspective, we signed our first customer product contract and began installation of our data migration application. This initial first step demonstrates our ability to identify a market opportunity, apply innovation, sell and capture revenue from those efforts. Additionally, we launched the Exogen brand, which is focused on the healthcare market, and are already receiving favorable response to our awareness and lead generation campaigns. From a financial operations perspective, cash management has improved significantly from previous quarters. Our DSO has declined measurably and we generated cash from operations in the quarter. Further, our net loss for the quarter declined significantly from previous quarters and we anticipate a continued favorable trend.”

Conference Call
TSC’s management will host a conference call on Wednesday, March 12, 2008, at 8 a.m. CST. The dial-in number for the call is 888-256-9075. For international participants, the dial-in number is 913-312-1241. The live broadcast of conference call will also be available online on the Investors section of TSC’s Web site at:
http://web.servicebureau.net/conf/meta?i=1112990737&c=2343&m=was&u=/w_ccbn.xsl&date_ticker=TSCC

It is recommended that participants using the Web access the site at least 15 minutes before the conference call begins to download and install any necessary audio software. The call can also be heard online at http://www.firstcallevents.com. For those who cannot access the live broadcast, a replay of the call will be available until midnight CST on March 26, 2008 by dialing 888-203-1112. The international replay dial-in number is 719-457-0820. The pass code for the replay is 7420197.

About Technology Solutions Company
Technology Solutions Company (TSC) is a leading business solutions provider that partners with clients to expose and leverage opportunities that create measure and sustain the delivery of value to their customers.  Our outside-in, fact-based approach quantifies value through the eyes of our client’s customers, unleashing the potential for profit and growth. TSC serves the healthcare, financial services and manufacturing industries through tailored business solutions that deliver extraordinarily rapid and guaranteed results.  For more information, please visit: www.techsol.com.

 

2


 

CERTAIN FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS

This press release contains or may contain certain forward-looking statements concerning the Company’s financial position, results of operations, cash flows, business strategy, budgets, projected costs and plans and objectives of management for future operations as well as other statements including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” and other similar expressions. These forward-looking statements involve significant risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, readers are cautioned that no assurance can be given that such expectations will prove correct and that actual results and developments may differ materially from those conveyed in such forward-looking statements. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements in this press release include, among others, the Company’s ability to manage decreased revenue levels; the Company’s need to attract new business and increase revenues; the Company’s declining cash position; the Company’s ability to manage costs and headcount relative to expected revenues; the Company’s ability to successfully introduce new product and service offerings; the Company’s dependence on a limited number of clients for a large portion of its revenue; the potential loss of significant clients; the Company’s ability to attract new clients and sell additional work to existing clients; the Company’s ability to attract and retain employees; the rapidly changing nature of information technology services, including the Company’s ability to keep pace with technological and market changes and its ability to refine and add to existing service offerings; the lack of shareholder approved stock options available for grants by the Company to retain existing employees; the Company’s ability to successfully integrate the Charter business with its business; and changing business, economic or market conditions and changes in competitive and other factors, all as more fully described herein and in the Company’s filings with the Securities and Exchange Commission, press releases and other communications. Forward-looking statements are not guarantees of performance. Such forward-looking statements speak only as of the date on which they are made and, except as may be otherwise required by law, the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. If the Company does update or correct one or more forward-looking statements, investors and others should not conclude that the Company will make additional updates or corrections with respect thereto or with respect to other forward-looking statements. Actual results may vary materially.

###

.

 

3


 

TECHNOLOGY SOLUTIONS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

                                 
    For the Three Months   For the Year
    Ended December 31,   Ended December 31,
    2007     2006     2007     2006  
    (unaudited)                
REVENUES:
                               
Revenues before reimbursements
  $ 5,309     $ 7,927     $ 23,247     $ 37,588  
Reimbursements
    707       1,002       3,139       5,034  
 
                       
Total Revenues
    6,016       8,929       26,386       42,622  
 
                       
 
                               
COSTS AND EXPENSES:
                               
Project personnel
    3,675       4,419       16,672       21,962  
Other project expenses
    686       1,800       4,402       8,642  
Reimbursable expenses
    707       1,002       3,139       5,034  
 
                       
Cost of Services
    5,068       7,221       24,213       35,638  
Management and administrative support
    1,222       3,621       10,589       12,433  
Intangible asset amortization
    49       260       205       996  
Intangible asset impairment
          3,233       143       3,233  
 
                       
Total Cost and Expenses
    6,339       14,335       35,150       52,300  
 
                       
 
                               
OPERATING LOSS
    (323 )     (5,406 )     (8,764 )     (9,678 )
 
                       
 
                               
OTHER INCOME:
                               
Net investment income
    23       134       469       844  
 
                       
LOSS BEFORE INCOME TAXES
    (300 )     (5,272 )     (8,295 )     (8,834 )
INCOME TAX PROVISION
                       
 
                       
 
                               
NET LOSS
  $ (300 )   $ (5,272 )   $ (8,295 )   $ (8,834 )
 
                       
 
                               
BASIC AND DILUTED NET LOSS PER COMMON SHARE
  $ (0.12 )   $ (2.10 )   $ (3.26 )   $ (3.57 )
 
                       
BASIC AND DILIUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
    2,559       2,507       2,541       2,477  
 
                       

 

4


 

TECHNOLOGY SOLUTIONS COMPANY
CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

                 
    December 31,     December 31,  
    2007     2006  
ASSETS
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 1,799     $ 6,924  
Short-term investments
    9,169       6,586  
Receivables, less allowance for doubtful receivables of $10 and $66
    3,220       7,655  
Loan receivable
          3,400  
Other current assets
    95       575  
 
           
Total current assets
    14,283       25,140  
 
               
COMPUTERS, FURNITURE AND EQUIPMENT, NET
    193       35  
 
               
INTANGIBLE ASSETS, NET
    518       867  
 
           
 
               
Total assets
  $ 14,994     $ 26,042  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
               
Accounts payable
  $ 1,099     $ 1,642  
Accrued compensation and related costs
    2,645       3,727  
Restructuring accruals
          400  
Other current liabilities
    1,079       2,193  
 
           
Total current liabilities
    4,823       7,962  
 
           
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY:
               
Preferred stock
           
Common stock, shares issued – 2,677,452; shares outstanding – 2,559,247 and 2,507,375
    27       27  
Capital in excess of par value
    129,981       130,183  
Accumulated deficit
    (115,816 )     (107,521 )
Treasury Stock, at cost, 118,205 and 170,077 shares
    (4,231 )     (4,819 )
Accumulated other comprehensive income:
               
Cumulative translation adjustment
    210       210  
 
           
Total stockholders’ equity
    10,171       18,080  
 
           
Total liabilities and stockholders’ equity
  $ 14,994     $ 26,042  
 
           

 

5