Revenues in the fourth quarter were $322.2 million, up 7% over prior year revenues of $301.9 million. For the year, earnings were $56.9 million ($1.34 per share diluted), 10% above 1998 earnings of $51.8 million ($1.21 per share diluted). The 1999 earnings were achieved despite the previously reported $11.8 million after-tax reserve. Revenues were $1.24 billion, up 17% over 1998 revenues of $1.06 billion.
Paul A. Brands, AMS chairman and chief executive officer, said, Excluding the reserve related to the Bezeq contract dating back to 1997, we are pleased with our financial results. We continued our margin improvement with a fourth quarter pre-tax margin of 9.7%. Importantly, we expanded our direct eBusiness revenue in 1999 to approximately $117 million and our eBusiness related revenue to more than $500 million, both increases of more than 150%. These eBusiness revenues accelerated throughout the year, with all business units participating in the growth.
A 32% increase in the federal government market drove the increase in the Company’s fourth quarter revenues when compared to the fourth quarter of 1998. This increase reflects the continued expansion of projects which began toward the end of 1998. Business in the telecommunications market increased 9% in the fourth quarter, primarily attributable to continued work on a number of new large projects started in 1999.
State and local government market revenues for the fourth quarter of 1999, as expected, did not increase over the fourth quarter of 1998, due to the completion of several large projects. Revenues in the financial services institutions market increased 4% over the third quarter of 1999; however, comparing 1999 to 1998, the fourth quarter revenues decreased mainly because of a market slowdown associated with Y2K lockdowns. International business, which represents 18% of AMS’s total revenues, increased 8% in the fourth quarter and 9% for the year 1999, when compared to the same 1998 periods.
The Company’s balance sheet continues to remain strong, ending the year with $111 million in cash even after using $53 million to repurchase its common stock. In addition, the Company’s bank debt decreased by $5 million while working capital remained at approximately $200 million.
