Revenues for the first half of 2001 will be within the estimated range of $636-662 million presented at the company’s Annual Conference for Securities Analysts and Investors on March 8, 2001.
The company expects earnings per share (EPS), before restructuring and special charges, for the second quarter to be in the range of $.30-.34, compared with $.33 in the first quarter. The EPS for the first half of 2001 is expected to be in the range of $.63-.67, before restructuring and special charges, compared with the $.73-.77 estimated range presented at the company’s March 8 Analysts Conference.
In addition to the previously announced $4-7 million planned additional restructuring charge over the remainder of fiscal year 2001, the Company also reported that it plans to take a special charge in the second quarter of approximately $7 million. The charge includes reserves in connection with certain client engagements for which the Company believes there is no further exposure and the writedown of software assets which no longer fit within the Company’s consolidated approach to the financial services market.
The company reported that it was encouraged that revenues were holding up in a very challenging market for systems integration and software services. Revenues in the telecommunications industry have been above expectations. Revenues from the federal government approximately are in line with expectations. Revenues from the state and local government marketplace have been less than expected, and revenues for the financial services market have been well below expectations. The company noted that the financial services market is a challenging one for almost all systems integrators and consultants. The company estimates that these revenue trends are likely to continue in the second half.
