EAST HANOVER, N.J., May 22 /PRNewswire-FirstCall/ -- Conversion Services International, Inc. , 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.
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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)"
About Conversion Services International, Inc.
Conversion Services International, Inc. (CSI) is a leading provider of professional services focusing on strategic consulting, data warehousing, business intelligence, business process reengineering, as well as integration and information technology management solutions. CSI offers an array of products and services to help companies define, develop, and implement the warehousing and strategic use of both enterprise-wide and specific categories of strategic data. CSI's current customers include ADP, Coach, Goldman Sachs, Liberty Mutual, Merck, Morgan Stanley, Pfizer, and Verizon Wireless. Information about CSI can be found on the web at http://www.csiwhq.com/ or by calling its corporate headquarters at 888-CSI-5036.
Note on Forward-Looking Statements
Except for the historical information contained herein, this press release contains, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may include, without limitation, statements with respect to CSI's plans, objectives, expectations and intentions and other statements identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. These statements are based upon the current beliefs and expectations of CSI's management and are subject to significant risks and uncertainties, including the ability of CSI to be in compliance with all applicable American Stock Exchange continued listing requirements, the ability to maintain revenue growth, the ability to locate and acquire other businesses and to successfully integrate such acquisitions, the ability to decrease operating expenses, and those detailed in CSI's filings with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond CSI's control). CSI undertakes no obligation to update publicly any forward-looking statements.
(1) Gartner, Inc., "Magic Quadrant for Business Intelligence
Implementation Services, North America, 2006," by Alex Soegarto and
Bill Hostmann, 3 March 2006.
Contact:
Mitch Peipert
Vice President and Chief Financial Officer
Conversion Services International, Inc.
973-560-9400
