Message #3 From:
Jason Date: January 19, 2008 09:13:40 PM
Digital Fusion Releases Third Quarter 2007 Results
Digital Fusion, Inc. (Pink Sheets: DIGF), an information technology (“IT”),
research and engineering, and acquisition and business support services
provider today announced financial results for the third quarter ended
September 21, 2007.
Third Quarter 2007 Highlights
Revenue of $12.1 million, an increase of $3.2 million over same
quarter in the previous year
Earnings before interest, taxes, share-based compensation,
depreciation and amortization (EBITDA) of $941,000, an increase of
$486,000 or 119.4% over same quarter in the previous year
Financial Comparisons
On January 1, 2007, Digital Fusion, Inc. elected to change its
accounting period. The election changes the financial reporting period
to a 52-53-week year. For 2007, Digital Fusion will have the following
quarterly reporting periods: 1) twelve weeks ended March 23, 2007, 2)
fourteen weeks ended June 29, 2007, 3) twelve weeks ended September 21,
2007, and 4) fourteen weeks ended December 28, 2007. The financial
reporting period ended September 21, 2007 is a 12-week period compared
to the previous year’s 13-week period (three
months) ended September 30, 2006.
For the twelve weeks ended September 21, 2007, revenues increased to
$12.1 million compared to $8.9 million for the third quarter of 2006.
For the quarter, GAAP net income was $169,000 and earnings per share was
$0.01, compared to GAAP net loss of $194,000 and loss per share of $0.02
for the third quarter of 2006.
For the thirty-eight weeks ended September 21, 2007, revenues increased
to $32.8 million compared to $24.6 million for the nine months ended
September 30, 2006. For the thirty-eight weeks ended September 21, 2007,
GAAP net income was $78,000 and earnings per share, was $0.01 compared
to GAAP net loss of $663,000 and loss per share of $0.06 for the nine
months ended September 30, 2006.
Business Discussion
Service revenue increased approximately $389,000 in the third quarter of
2007 compared to the same quarter in the previous year. The increase in
service revenues during the third quarter of 2007 compared to the same
quarter in the previous year was primarily related to the increase in
the number of billable employees in engineering and IT services,
partially offset by the shorter quarterly reporting period noted above.
Reimbursed costs revenue increased $2.8 million in the third quarter of
2007 compared to the third quarter of 2006. The increase in reimbursed
cost revenue is primarily related to an increase in sub-contract
activity related to ITAC and purchases made for customers. Product
revenue decreased approximately $35,000 in the third quarter of 2007
compared to the same quarter of the previous year. The decrease in
product revenue resulted from a reduction of software re-sales to
governmental organizations. Reselling software is not something the
company is focused on, and product revenue is not expected to be
significant in the future.
Management Comments
“The third quarter met our expectations and I
remain confident that we are on track in achieving our financial goals.
I believe our results validate that our strategy of broadening our
customer base through organic growth is working. We are also starting to
see the results of our business development initiatives and the
refinement of our bid and proposal pipeline,”
said Lt. Gen. (Ret.) Frank Libutti, Chairman of the Board and Chief
Executive Officer of Digital Fusion.
About Digital Fusion DIGF
Digital Fusion, Inc., headquartered in Huntsville, Alabama, is an
information technology, research and engineering, and acquisition and
business support services company that helps its customers make the most
of technology to meet their business needs. Digital Fusion
provides state-of-the-art solutions to both government and commercial
customers. Digital Fusion’s core competencies
are focused in the following broad areas: Application Development,
Architecture and Security; Network Security; Data Management and
Business Intelligence; System Migration and Integration; Sensor Systems
Development and Analysis; Aerodynamic Design, Analysis, and Support;
Thermal-Structural Modeling; Test and Evaluation; Systems Engineering;
Modeling and Simulation; Control System Design and Analysis; Mechanical
Design and Analysis; and Program Management Support. For additional
information about Digital Fusion visit http://www.digitalfusion.com.
