For the 12 months ended December 31, 2002, Jacksonville, Florida-based MPS posted a net loss of $566.3m compared to a net profit of $8.34m in 2001, on revenue that fell 25% to $1.15bn. The bottom line was hit following the adoption of the new SFAS 142 accounting change, which requires companies to perform impairment tests on their assets annually.
MPS operates two IT services businesses, its consulting and systems integration business Modis, and its e-business consulting operation Idea Integration. During the year, IT services, which is otherwise known as Modis, saw revenue fall 25% to $575.3m and e-business solutions, otherwise known as Idea Integration, fell 50% to $84.5m. Staffing and legal services meanwhile, also saw revenue fall 18.6% to $495.2m.
During the fourth quarter, MPS’s net loss widened to $24m from a net loss of $2.73m in 2001, on revenue that fell 14% to $280.4m. Revenue from Modis fell 18% to $134.9m, Idea Integration fell 33% to $20.6m, and staffing and legal services fell 3.8% to $124.9m. At the end of the period MPS’s working capital fell to $171.9m from $204.7m in 2001.
For the first quarter ending March 31, MPS expects revenue to decline sequentially to between $265m and $275m, and to generate earnings per share of between $0.02 and $0.04.
Source: Computerwire
