Data Dimensions Reports First Quarter Results

Apr 26, 2001, 01:00 ET from Data Dimensions, Inc.

    BELLEVUE, Wash., April 26 /PRNewswire/ --
 Data Dimensions, Inc. (Nasdaq:   DDIM) today announced financial results for the
 first quarter ended March 31, 2001. Revenue for three months ended
 March 31, 2001 was $6.5 million compared to $7.6 million for the comparable
 period in 2000. The company reported a net loss of $2.8 million, or
 $0.21 per diluted share, in the quarter ended March 31, 2001, compared to a
 loss from continuing operations of $1.9 million, or $0.14 per diluted share,
 for the comparable quarter of 2000. The net loss for the quarter ended
 March 31, 2000, including discontinued operations, was $2.3 million, or
 $0.17 per diluted share.
     On March 8, 2001, Data Dimensions and
 Lionbridge Technologies, Inc. (Nasdaq:   LIOX) announced the signing of a
 definitive agreement whereby Lionbridge would acquire Data Dimensions. Under
 the terms of the agreement, each share of Data Dimensions' common stock will
 convert into approximately 0.19 of a share of Lionbridge common stock. The
 acquisition is expected to create one of the most comprehensive software
 certification and outsourced software test organizations in the industry.
     "While fundamentally strong and growing, the Quality Assurance (QA) and
 Testing market was affected by the overall slowdown in information technology
 spending in the latter part of 2000 and early 2001," said Peter Allen, Data
 Dimensions' president and chief executive officer. "Our first quarter
 particularly reflected a continuing decline in Internet-related solution
 spending. Although recent indications suggest a strengthening in second
 quarter business levels, we remain cautious and are continuing to size our
 operations appropriate to our revenue expectations."
     The Company indicated that completion of the transaction with Lionbridge
 is subject to customary closing conditions, including approval by the
 stockholders of Data Dimensions. The transaction is expected to close at the
 end of the second quarter.
 
     About Data Dimensions
     Data Dimensions, Inc., an international information technology (IT)
 services company, was founded in 1968. By combining comprehensive consulting
 services, a network of world-class test centers and an offshore applications
 solutions center, Data Dimensions provides contemporary technology solutions
 to organizations ranging from emerging companies to the Fortune 100. From
 legacy systems to handheld devices, Data Dimensions delivers quality assurance
 and testing as well as application development and maintenance services to
 help its clients achieve superior business results. For more information,
 please visit the company's Web site at http://www.data-dimensions.com .
     This press release contains forward-looking statements concerning Data
 Dimensions Inc.'s current expectations as to results of operations and other
 matters. These forward-looking statements are subject to risks and
 uncertainties and the Company's actual results may vary materially depending
 on various factors such as the overall demand for Information Technology
 consulting services and specifically customer demand for outsourced testing
 and quality assurance services, the Company's ability to keep pace with
 rapidly changing technology, the development of new service offerings, the
 loss of a major client, the dependence on clients' product releases, the
 management and completion of client projects, the attraction and retention of
 employees and successful completion of any business combination. For
 additional information concerning risks associated with Data Dimensions'
 business and operating results, see the Company's Form 10K for the most
 recently ended fiscal year, under the heading, "Management's Discussion and
 Analysis of Financial Condition and Results of Operations-Forward Looking
 Statements and Associated Risks."
     NOTE:  The Data Dimensions logo is a registered trademark of Data
 Dimensions, Inc. Other brand and product names are trademarks of their
 respective owners.
 
                             DATA DIMENSIONS, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
                                  (Unaudited)
 
 
     Three Months Ended March 31,                       2001           2000
     Revenue                                           $6,452         $7,625
 
     Direct costs                                       4,494          5,298
 
     Gross margin                                       1,958          2,327
 
     Selling, general and administrative expenses       4,591          5,500
 
     Loss from operations                              (2,633)        (3,173)
 
     Other expense (income), net                           62            (47)
 
     Loss from continuing operations before
      income tax                                       (2,695)        (3,126)
     Income tax provision (benefit) from
      continuing operations                               130         (1,219)
 
     Loss from continuing operations, net of tax       (2,825)        (1,907)
 
     Loss from discontinued operations, net of tax         --           (370)
     Net loss                                         $(2,825)       $(2,277)
 
     Loss per share-basic
       From continuing operations                      $(0.21)        $(0.14)
       From discontinued operations                       $--         $(0.03)
                                                       $(0.21)        $(0.17)
 
     Loss per share-diluted
       From continuing operations                      $(0.21)        $(0.14)
       From discontinued operations                       $--         $(0.03)
                                                       $(0.21)        $(0.17)
 
     Weighted average shares outstanding-basic         13,561         13,557
     Weighted average shares outstanding-diluted       13,561         13,557
 
                             DATA DIMENSIONS, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                     March 31,    December, 31
                                                       2001           2000
                                                    (Unaudited)
 
     Current assets:
       Cash and cash equivalents                       $1,932         $2,110
       Accounts receivable, net                         7,539         11,523
       Prepaid and other current assets                 5,874          5,473
       Deferred income taxes                               --            130
 
         Total current assets                          15,345         19,236
     Equipment and furniture, net                       2,924          2,952
     Other assets                                         660            947
 
         Total assets                                 $18,929        $23,135
 
     Current liabilities:
       Accounts payable                                  $861         $1,057
       Accrued compensation and commissions             1,404          1,638
       Other accrued liabilities                          546          1,393
 
         Total current liabilities                      2,811          4,088
 
     Other long term liabilities                          198            192
 
         Total liabilities                              3,009          4,280
 
 
     Stockholders' equity:
       Common stock and additional paid in capital     24,858         24,789
       Treasury stock, at cost                         (3,034)        (3,034)
       Cumulative comprehensive loss                     (550)          (371)
       Accumulated deficit                             (5,354)        (2,529)
 
         Total stockholders' equity                    15,920         18,855
 
         Total liabilities and stockholders' equity   $18,929        $23,135
 
 
     CONTACT:  Jim McLendon of Data Dimensions, Inc., 425-468-1158, or
 InvestorRelations@data-dimensions.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X76573192
 
 

SOURCE Data Dimensions, Inc.
    BELLEVUE, Wash., April 26 /PRNewswire/ --
 Data Dimensions, Inc. (Nasdaq:   DDIM) today announced financial results for the
 first quarter ended March 31, 2001. Revenue for three months ended
 March 31, 2001 was $6.5 million compared to $7.6 million for the comparable
 period in 2000. The company reported a net loss of $2.8 million, or
 $0.21 per diluted share, in the quarter ended March 31, 2001, compared to a
 loss from continuing operations of $1.9 million, or $0.14 per diluted share,
 for the comparable quarter of 2000. The net loss for the quarter ended
 March 31, 2000, including discontinued operations, was $2.3 million, or
 $0.17 per diluted share.
     On March 8, 2001, Data Dimensions and
 Lionbridge Technologies, Inc. (Nasdaq:   LIOX) announced the signing of a
 definitive agreement whereby Lionbridge would acquire Data Dimensions. Under
 the terms of the agreement, each share of Data Dimensions' common stock will
 convert into approximately 0.19 of a share of Lionbridge common stock. The
 acquisition is expected to create one of the most comprehensive software
 certification and outsourced software test organizations in the industry.
     "While fundamentally strong and growing, the Quality Assurance (QA) and
 Testing market was affected by the overall slowdown in information technology
 spending in the latter part of 2000 and early 2001," said Peter Allen, Data
 Dimensions' president and chief executive officer. "Our first quarter
 particularly reflected a continuing decline in Internet-related solution
 spending. Although recent indications suggest a strengthening in second
 quarter business levels, we remain cautious and are continuing to size our
 operations appropriate to our revenue expectations."
     The Company indicated that completion of the transaction with Lionbridge
 is subject to customary closing conditions, including approval by the
 stockholders of Data Dimensions. The transaction is expected to close at the
 end of the second quarter.
 
     About Data Dimensions
     Data Dimensions, Inc., an international information technology (IT)
 services company, was founded in 1968. By combining comprehensive consulting
 services, a network of world-class test centers and an offshore applications
 solutions center, Data Dimensions provides contemporary technology solutions
 to organizations ranging from emerging companies to the Fortune 100. From
 legacy systems to handheld devices, Data Dimensions delivers quality assurance
 and testing as well as application development and maintenance services to
 help its clients achieve superior business results. For more information,
 please visit the company's Web site at http://www.data-dimensions.com .
     This press release contains forward-looking statements concerning Data
 Dimensions Inc.'s current expectations as to results of operations and other
 matters. These forward-looking statements are subject to risks and
 uncertainties and the Company's actual results may vary materially depending
 on various factors such as the overall demand for Information Technology
 consulting services and specifically customer demand for outsourced testing
 and quality assurance services, the Company's ability to keep pace with
 rapidly changing technology, the development of new service offerings, the
 loss of a major client, the dependence on clients' product releases, the
 management and completion of client projects, the attraction and retention of
 employees and successful completion of any business combination. For
 additional information concerning risks associated with Data Dimensions'
 business and operating results, see the Company's Form 10K for the most
 recently ended fiscal year, under the heading, "Management's Discussion and
 Analysis of Financial Condition and Results of Operations-Forward Looking
 Statements and Associated Risks."
     NOTE:  The Data Dimensions logo is a registered trademark of Data
 Dimensions, Inc. Other brand and product names are trademarks of their
 respective owners.
 
                             DATA DIMENSIONS, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
                                  (Unaudited)
 
 
     Three Months Ended March 31,                       2001           2000
     Revenue                                           $6,452         $7,625
 
     Direct costs                                       4,494          5,298
 
     Gross margin                                       1,958          2,327
 
     Selling, general and administrative expenses       4,591          5,500
 
     Loss from operations                              (2,633)        (3,173)
 
     Other expense (income), net                           62            (47)
 
     Loss from continuing operations before
      income tax                                       (2,695)        (3,126)
     Income tax provision (benefit) from
      continuing operations                               130         (1,219)
 
     Loss from continuing operations, net of tax       (2,825)        (1,907)
 
     Loss from discontinued operations, net of tax         --           (370)
     Net loss                                         $(2,825)       $(2,277)
 
     Loss per share-basic
       From continuing operations                      $(0.21)        $(0.14)
       From discontinued operations                       $--         $(0.03)
                                                       $(0.21)        $(0.17)
 
     Loss per share-diluted
       From continuing operations                      $(0.21)        $(0.14)
       From discontinued operations                       $--         $(0.03)
                                                       $(0.21)        $(0.17)
 
     Weighted average shares outstanding-basic         13,561         13,557
     Weighted average shares outstanding-diluted       13,561         13,557
 
                             DATA DIMENSIONS, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                     March 31,    December, 31
                                                       2001           2000
                                                    (Unaudited)
 
     Current assets:
       Cash and cash equivalents                       $1,932         $2,110
       Accounts receivable, net                         7,539         11,523
       Prepaid and other current assets                 5,874          5,473
       Deferred income taxes                               --            130
 
         Total current assets                          15,345         19,236
     Equipment and furniture, net                       2,924          2,952
     Other assets                                         660            947
 
         Total assets                                 $18,929        $23,135
 
     Current liabilities:
       Accounts payable                                  $861         $1,057
       Accrued compensation and commissions             1,404          1,638
       Other accrued liabilities                          546          1,393
 
         Total current liabilities                      2,811          4,088
 
     Other long term liabilities                          198            192
 
         Total liabilities                              3,009          4,280
 
 
     Stockholders' equity:
       Common stock and additional paid in capital     24,858         24,789
       Treasury stock, at cost                         (3,034)        (3,034)
       Cumulative comprehensive loss                     (550)          (371)
       Accumulated deficit                             (5,354)        (2,529)
 
         Total stockholders' equity                    15,920         18,855
 
         Total liabilities and stockholders' equity   $18,929        $23,135
 
 
     CONTACT:  Jim McLendon of Data Dimensions, Inc., 425-468-1158, or
 InvestorRelations@data-dimensions.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X76573192
 
 SOURCE  Data Dimensions, Inc.