Exponent Reports Record Results for First Quarter

Apr 12, 2001, 01:00 ET from Exponent, Inc.

    MENLO PARK, Calif., April 12 /PRNewswire/ -- Exponent, Inc. (Nasdaq:   EXPO)
 today reported financial results for the first quarter ended March 30, 2001.
     For the first quarter, income from continuing operations increased
 13 percent to $2,425,000, or $0.34 per share, from $2,141,000 or $0.30 per
 share over the same period in 2000.  Revenues for the quarter rose 7 percent
 to $27,861,000 compared to $26,126,000 for the same quarter a year ago.
 Stockholders' equity grew to $68.0 million or $10.46 per outstanding share as
 of the quarter end.
     Exponent continued to benefit from the strong performance of its
 Electrical and Technology Development practices during the quarter.  The
 Company's Environmental and Health business segment also saw strengthened
 results in comparison to a year ago.
     During the quarter, Exponent received an interim contract for work on the
 Land Warrior Program.  This contract covers efforts by Exponent that
 culminated in a critical design review of the Land Warrior system, which took
 place earlier this week.  The interim contract was put in place to allow
 development work to continue while Exponent and five other companies form a
 consortium for the next phase of work.  The consortium is currently in the
 process of negotiating a contract with the U.S. Army for the engineering and
 manufacturing development of the Land Warrior version 1.0 prototype system.
 Exponent will continue its leadership role as the program manager and system
 engineer as a member of the consortium.
     "We are pleased to have begun the year with a strong first quarter.  We
 continued to benefit from expansion of Technology Development and a focus on
 those practices with the highest growth potential," commented President and
 Chief Executive Officer Michael R. Gaulke.  "The visit this week by the Chief
 of Staff of the United States Army, General Eric K. Shinseki, was a testament
 to the success of the Land Warrior program to date.  We believe that the
 recognition of our ability to solve complex problems by utilizing commercial
 off-the-shelf technologies will create new opportunities for Exponent in the
 future."
     Exponent is an engineering and scientific consulting firm providing
 solutions to complex problems. Whether the firm investigates an incident that
 happened in the past or assists with the development of a new product or
 service, Exponent offers knowledge to assist its clients to make informed,
 intelligent decisions.  Exponent's multidisciplinary organization of
 scientists, physicians, engineers, and business consultants brings together
 more than 70 technical disciplines to address complicated issues facing
 industry and government today.  The firm's consultants analyze failures and
 accidents to determine their causes and provide answers to help prevent such
 problems.  In addition, Exponent evaluates human health and environmental
 concerns to find cost-effective solutions. Exponent is certified to ISO 9001.
     Exponent may be reached at 888-656-EXPO, info@exponent.com, or
 www.exponent.com.
      This news release contains certain forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933, as amended, and
 Section 21E of the Securities Exchange Act of 1934, as amended, and is subject
 to the safe harbor created by those sections.  When used in this news release,
 the words "anticipate," "believe," and similar expressions, identify such
 forward-looking statements.  Such forward-looking statements reflect the
 current views of the Company or its management with respect to future events
 and are subject to certain risks and uncertainties, including, without
 limitation:  changes in demand for the Company's services, competition,
 attraction and retention of key employees, regulation, general absence of
 backlog in the consulting business, integration of acquired companies,
 fluctuations in interest rates, and other factors described in the Company's
 reports filed with the Securities and Exchange Commission, including, but not
 limited to, its Annual Report on Form 10-K for the year ended
 December 29, 2000.  As a result, there can be no assurance that the Company's
 future results will not be materially different from those projected.
 
                                 EXPONENT, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
          For the Quarters Ended March 30, 2001 and December 29, 2000
                       (in thousands, except share data)
 
                                          March 30,    Dec. 29,
                                            2001         2000
             Assets
     Current assets:
       Cash and cash equivalents             $959      $6,379
       Accounts receivable, net            35,103      32,257
       Prepaid expenses and other assets    3,711       2,892
       Deferred income taxes                1,908       1,908
          Total current assets             41,681      43,436
     Property, equipment and leasehold
      improvements, net                    33,791      34,007
     Goodwill                               7,045       7,250
     Other assets                             919         933
                                          $83,436     $85,626
 
          Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued
        liabilities                        $4,610      $4,232
       Current installments of long-term
        obligations                           584         839
       Accrued payroll and employee
        benefits                            9,468      13,275
       Deferred revenues                       --       1,057
          Total current liabilities        14,662      19,403
     Long-term obligations, net of
      current installments                    147         227
     Other obligations                        615         659
          Total liabilities                15,424      20,289
 
     Stockholders' equity:
       Common stock                             8           8
       Additional paid-in capital          32,890      33,016
       Accumulated other comprehensive
        losses                               (122)        (97)
       Retained earnings                   44,677      42,252
       Treasury shares, at cost            (9,441)     (9,842)
             Total stockholders' equity    68,012      65,337
 
                                          $83,436     $85,626
 
 
                                 EXPONENT, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            For the Quarters Ended March 30, 2001 and March 31, 2000
                     (in thousands, except per share data)
 
 
                                                         Quarters Ended
                                                   March 30,          March 31,
                                                     2001               2000
 
     Revenues                                       $27,861            $26,126
 
     Operating Expenses
        Compensation and related expenses            18,179             16,242
        Other operating expenses                      4,070              4,003
        General and administrative expenses           1,899              2,592
 
                                                     24,148             22,837
 
            Operating income                          3,713              3,289
 
     Other income (expense)
        Interest income (expense), net                   64                (33)
        Miscellaneous income, net                       418                402
                                                        482                369
 
            Income from continuing operations
             before income taxes                      4,195              3,658
 
     Income taxes                                     1,770              1,517
 
            Income from continuing operations         2,425              2,141
 
     Discontinued operations
 
        Income from operations of BCS
         Wireless, Inc. (net of tax expense)             --                 56
 
            Net income                               $2,425             $2,197
 
     Income per share from
      continuing operations
        Basic                                         $0.37              $0.32
        Diluted                                       $0.34              $0.30
 
     Income per share from
      discontinued operations:
        Basic                                           $--              $0.01
        Diluted                                         $--              $0.01
 
     Net income per share
        Basic                                         $0.37              $0.33
        Diluted                                       $0.34              $0.31
 
     Shares used in per share computations:
        Basic                                         6,471              6,681
        Diluted                                       7,174              7,075
 
 

SOURCE Exponent, Inc.
    MENLO PARK, Calif., April 12 /PRNewswire/ -- Exponent, Inc. (Nasdaq:   EXPO)
 today reported financial results for the first quarter ended March 30, 2001.
     For the first quarter, income from continuing operations increased
 13 percent to $2,425,000, or $0.34 per share, from $2,141,000 or $0.30 per
 share over the same period in 2000.  Revenues for the quarter rose 7 percent
 to $27,861,000 compared to $26,126,000 for the same quarter a year ago.
 Stockholders' equity grew to $68.0 million or $10.46 per outstanding share as
 of the quarter end.
     Exponent continued to benefit from the strong performance of its
 Electrical and Technology Development practices during the quarter.  The
 Company's Environmental and Health business segment also saw strengthened
 results in comparison to a year ago.
     During the quarter, Exponent received an interim contract for work on the
 Land Warrior Program.  This contract covers efforts by Exponent that
 culminated in a critical design review of the Land Warrior system, which took
 place earlier this week.  The interim contract was put in place to allow
 development work to continue while Exponent and five other companies form a
 consortium for the next phase of work.  The consortium is currently in the
 process of negotiating a contract with the U.S. Army for the engineering and
 manufacturing development of the Land Warrior version 1.0 prototype system.
 Exponent will continue its leadership role as the program manager and system
 engineer as a member of the consortium.
     "We are pleased to have begun the year with a strong first quarter.  We
 continued to benefit from expansion of Technology Development and a focus on
 those practices with the highest growth potential," commented President and
 Chief Executive Officer Michael R. Gaulke.  "The visit this week by the Chief
 of Staff of the United States Army, General Eric K. Shinseki, was a testament
 to the success of the Land Warrior program to date.  We believe that the
 recognition of our ability to solve complex problems by utilizing commercial
 off-the-shelf technologies will create new opportunities for Exponent in the
 future."
     Exponent is an engineering and scientific consulting firm providing
 solutions to complex problems. Whether the firm investigates an incident that
 happened in the past or assists with the development of a new product or
 service, Exponent offers knowledge to assist its clients to make informed,
 intelligent decisions.  Exponent's multidisciplinary organization of
 scientists, physicians, engineers, and business consultants brings together
 more than 70 technical disciplines to address complicated issues facing
 industry and government today.  The firm's consultants analyze failures and
 accidents to determine their causes and provide answers to help prevent such
 problems.  In addition, Exponent evaluates human health and environmental
 concerns to find cost-effective solutions. Exponent is certified to ISO 9001.
     Exponent may be reached at 888-656-EXPO, info@exponent.com, or
 www.exponent.com.
      This news release contains certain forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933, as amended, and
 Section 21E of the Securities Exchange Act of 1934, as amended, and is subject
 to the safe harbor created by those sections.  When used in this news release,
 the words "anticipate," "believe," and similar expressions, identify such
 forward-looking statements.  Such forward-looking statements reflect the
 current views of the Company or its management with respect to future events
 and are subject to certain risks and uncertainties, including, without
 limitation:  changes in demand for the Company's services, competition,
 attraction and retention of key employees, regulation, general absence of
 backlog in the consulting business, integration of acquired companies,
 fluctuations in interest rates, and other factors described in the Company's
 reports filed with the Securities and Exchange Commission, including, but not
 limited to, its Annual Report on Form 10-K for the year ended
 December 29, 2000.  As a result, there can be no assurance that the Company's
 future results will not be materially different from those projected.
 
                                 EXPONENT, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
          For the Quarters Ended March 30, 2001 and December 29, 2000
                       (in thousands, except share data)
 
                                          March 30,    Dec. 29,
                                            2001         2000
             Assets
     Current assets:
       Cash and cash equivalents             $959      $6,379
       Accounts receivable, net            35,103      32,257
       Prepaid expenses and other assets    3,711       2,892
       Deferred income taxes                1,908       1,908
          Total current assets             41,681      43,436
     Property, equipment and leasehold
      improvements, net                    33,791      34,007
     Goodwill                               7,045       7,250
     Other assets                             919         933
                                          $83,436     $85,626
 
          Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued
        liabilities                        $4,610      $4,232
       Current installments of long-term
        obligations                           584         839
       Accrued payroll and employee
        benefits                            9,468      13,275
       Deferred revenues                       --       1,057
          Total current liabilities        14,662      19,403
     Long-term obligations, net of
      current installments                    147         227
     Other obligations                        615         659
          Total liabilities                15,424      20,289
 
     Stockholders' equity:
       Common stock                             8           8
       Additional paid-in capital          32,890      33,016
       Accumulated other comprehensive
        losses                               (122)        (97)
       Retained earnings                   44,677      42,252
       Treasury shares, at cost            (9,441)     (9,842)
             Total stockholders' equity    68,012      65,337
 
                                          $83,436     $85,626
 
 
                                 EXPONENT, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            For the Quarters Ended March 30, 2001 and March 31, 2000
                     (in thousands, except per share data)
 
 
                                                         Quarters Ended
                                                   March 30,          March 31,
                                                     2001               2000
 
     Revenues                                       $27,861            $26,126
 
     Operating Expenses
        Compensation and related expenses            18,179             16,242
        Other operating expenses                      4,070              4,003
        General and administrative expenses           1,899              2,592
 
                                                     24,148             22,837
 
            Operating income                          3,713              3,289
 
     Other income (expense)
        Interest income (expense), net                   64                (33)
        Miscellaneous income, net                       418                402
                                                        482                369
 
            Income from continuing operations
             before income taxes                      4,195              3,658
 
     Income taxes                                     1,770              1,517
 
            Income from continuing operations         2,425              2,141
 
     Discontinued operations
 
        Income from operations of BCS
         Wireless, Inc. (net of tax expense)             --                 56
 
            Net income                               $2,425             $2,197
 
     Income per share from
      continuing operations
        Basic                                         $0.37              $0.32
        Diluted                                       $0.34              $0.30
 
     Income per share from
      discontinued operations:
        Basic                                           $--              $0.01
        Diluted                                         $--              $0.01
 
     Net income per share
        Basic                                         $0.37              $0.33
        Diluted                                       $0.34              $0.31
 
     Shares used in per share computations:
        Basic                                         6,471              6,681
        Diluted                                       7,174              7,075
 
 SOURCE  Exponent, Inc.