EAST HANOVER, N.J., April 6 /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 fourth quarter and fiscal year ended December 31, 2006.
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Unaudited revenues for the fourth quarter decreased 13.6% to $6.1 million from $7.1 million in the fourth quarter of 2005. The Company reported an unaudited operating loss of $1.3 million, versus an operating loss of $3.0 million in the comparable prior year period.
For the year ended 2006, revenues decreased 7.1% to $25.7 million from $27.6 million in 2005. The Company reported an operating loss of $5.9 million, versus an operating loss of $6.1 million for the comparable period in the prior year, and net loss attributable to common stockholders of $10.2 million for the year ended 2006 as compared to a net loss attributable to common stockholders of $5.1 million for the year ended 2005.
CSI president, chief executive officer and chairman, Scott Newman stated, "We strengthened our sales and delivery capabilities and expanded our marketing and recruiting programs in 2006 and early 2007, while continuing to decrease our operating expenses. We have also used a $4.25 million equity investment to reduce debt. For 2007, we are optimistic about our opportunities and believe CSI is well positioned for accelerating revenue growth and profits this year. Demand for the type of Business Intelligence services we provide is increasing at a healthy pace and that growth is expected to continue through 2009. We have established ourselves as a credible player in the business intelligence marketplace and remain committed to strengthening our position and market reputation in the coming year."
CSI also announced today, in compliance with American Stock Exchange Company Guide Section 610(b), that the Company's independent registered public accounting firm, Friedman LLP, included a going concern explanatory paragraph in its report on the Company's consolidated financial statements as of and for the fiscal year ended December 31, 2006. For information regarding management's plans in regard to these matters, please see the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2007.
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 and Pfizer. 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.
Contact:
Tracee Lee Beebe
Marketing & Communications
Conversion Services International, Inc.
973-560-9400
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