First quarter revenue was $39.1 million, consistent with previous guidance, up from $38.2 million in last year’s first quarter. Pro forma operating loss (before amortization of intangibles and non-cash stock-based compensation charges and a restructuring charge) was $15.9 million, compared to pro forma operating income of $3.1 million for the first quarter last year. Pro forma net loss for the quarter (before amortization of intangibles and non-cash stock-based compensation and a restructuring charge) was $7.6 million, or $0.13 per diluted share, consistent with previous guidance, compared to pro forma net income of $2.7 million, or $0.04 per diluted share, for the first quarter a year ago.
Proxicom recorded a one-time restructuring charge of $57 million in the first quarter. Ninety-three percent of the restructuring charge was related to the disposition of real estate leases, in addition to employee severance and outplacement packages. The charge was higher than previously anticipated due to a further softening in the sublease market. The company’s overall cash position at the end of the first quarter was $72.1 million.
As expected, our first quarter performance reflected the continued weakness in demand for IT services in U.S. and European markets, commented Raul J. Fernandez, chairman and chief executive officer of Proxicom. We have taken appropriate steps to align our cost structure with our current pipeline, and believe we remain in strong position to serve the IT needs of our global customers.
SOURCE: COMPANY PRESS RELEASE
