RWD Reports First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from RWD Technologies, Inc.

    COLUMBIA, Md., April 24 /PRNewswire Interactive News Release/ --
 RWD Technologies, Inc. (Nasdaq: RWDT) today reported its financial results for
 the first quarter of 2001.
     RWD's 2001 first quarter revenue was $30.1 million, with a net loss of
 $616,000 resulting in a loss of $0.04 per share.  In 2000, first quarter
 revenue was $30.8 million, with net income of $539,000 resulting in earnings
 of $0.04 per share.
     The decline in 2001 first quarter profitability compared to a year ago
 reflected a variety of factors including: the decline in revenue; maintaining
 our skilled employee group at full strength despite lower revenue in order to
 take rapid advantage of future growth opportunities; and development of new
 service areas, augmentation of our sales staff and significant expansion in
 global marketing activities.
     During the quarter, Enterprise Systems expanded its SAP partnership to
 include the sales of RWD services and products through the SAP sales force.
 In addition, SAP and RWD have formed a company, SAP Learning Solutions, as a
 joint venture based in Singapore, with an office in Australia and an office
 soon to be opened in Japan.  RWD expects to realize the full impact of these
 SAP arrangements in the second half of 2001.
     Latitude360(TM) is marketing University360(TM), an online Learning Center
 for major corporations and professional societies.  It can be customized to
 satisfy the global training requirements of these very large organizations.
 RWD has invested significantly to develop University360 as a comprehensive
 suite of totally integrated learning components.  RWD is currently engaged in
 designing a Learning Center for a professional association with the capability
 to provide training courses for more than 60,000 of its members.
     Dr. Robert W. Deutsch, RWD's Chairman and CEO stated, "RWD's mission is to
 assure that our clients derive the highest return on their technology
 investments by providing support systems that increase worker productivity as
 well as product and/or service quality.  While temporarily experiencing flat
 marketplace demand, RWD is a growth company with excellent prospects.  Our
 financial performance in all segments of our business during the first quarter
 is attributed to the slowing down of funding for Company services by many of
 our clients.  This slowdown has also affected our ability to penetrate new
 business areas in which RWD has unique capabilities.  We expect to be over
 most of these hurdles in all business areas by the middle of this year.  We
 are currently well positioned to resume the growth rate we had prior to 1999,
 which exceeded 30 percent."
     Reflecting confidence in the long term outlook for our business, the RWD
 Board of Directors has authorized the repurchase of up to 1,000,000 shares of
 our common stock in the open market.  We believe our stock price should
 eventually reflect our true worth and provide a significant reward to our
 shareholders and to our employees.
 
     About RWD Technologies, Inc.
     RWD Technologies is a professional services company with headquarters in
 Columbia, Maryland that provides a broad range of technology solutions to the
 business problems confronting Fortune 500 companies.  The Company has three
 operational segments:
 
     -- Manufacturing Performance specializes in assisting the automotive
        manufacturers, their suppliers and other companies in the design and
        implementation of lean manufacturing processes and the training of
        the plant workforce in the launching of new vehicles to produce
        products of higher quality at a lower cost.
 
     -- Enterprise Systems has established itself as a leader in the delivery
        and maintenance of performance-based productivity solutions for
        companies implementing enterprise software packages that operate part
        or all of a company's business processes.
 
     -- Latitude360(TM) has core competencies that include every aspect of
        developing web-enabled infrastructure and delivers eSolutions and
        eLearning customized applications which enable clients to satisfy
        their documentation, customer relations, and employee training
        requirements.
 
     Established in 1988, RWD has approximately 1,100 employees located in
 18 offices in the United States, 3 offices in Europe, an office in Mexico, and
 an office in Singapore.  RWD provides services that increase productivity and
 reduce operating costs for companies in more than 20 industries.  Information
 about RWD can be found at the Corporation's World Wide Web site, www.rwd.com.
 
     Media Contact:
     RWD Technologies
     Robert T. O'Connell
     Chief Financial Officer and Senior Vice President
     BO'Connell@rwd.com
     800-448-8324
 
     Certain statements contained herein, including statements regarding
 development of the Company's services, markets, and future demands for the
 Company's services, and other statements regarding matters that are not
 historical facts, are forward-looking statements (as defined in the Private
 Securities Litigation Reform Act of 1995).  Such forward-looking statements
 include risks and uncertainties; consequently, actual results may differ
 materially from those expressed or implied thereby.  Factors that could cause
 actual results to differ materially include, but are not limited to, reliance
 on strategic partners and alliance organizations, expansion of international
 operations, reliance on the market for enterprise resource planning software,
 rapid technological change in the information technology industry, reliance on
 a few key clients, the Company's ability to attract and retain sufficient
 employees, substantial competition, concentration of revenue in the automotive
 industry, which is subject to cyclical and economic factors outside the
 Company's control, as well as various project risks associated with individual
 projects that could materially impact operating results, the Company's ability
 to effectively manage its growth, variability of operating results, and
 dependence on key personnel.
 
     RWD and RWD Technologies, Inc. are registered trademarks, and RWD
 Technologies and Latitude360 are trademarks of RWD Technologies, Inc. in the
 United States and several other countries.  All other products and names are
 or may be trademarks or registered trademarks of their respective owners.
 
 
                             RWD TECHNOLOGIES, INC.
                              STATEMENTS OF INCOME
               (unaudited) (in thousands, except per share data)
 
                                                      Quarter Ended
                                                        March 31,
                                                  2001            2000
     Revenue                                     $30,050        $30,814
     Cost of services                             24,965         23,966
       Gross profit                                5,085          6,848
     Selling, general, and administrative
      expenses                                     6,455          6,246
     Operating (loss) income                      (1,370)           602
     Other income, net                               208            254
       (Loss) income before taxes                 (1,162)           856
     Income tax (benefit) provision                 (546)           317
       Net (loss) income                           $(616)          $539
 
       Diluted (loss) earnings per share          $(0.04)         $0.04
       Basic (loss) earnings per share            $(0.04)         $0.04
 
     Weighted average shares outstanding-
       Diluted calculation                        15,151         15,404
       Basic calculation                          15,151         14,757
 
     Number of employees                           1,077          1,057
 
 
                             RWD TECHNOLOGIES, INC.
                            CONDENSED BALANCE SHEETS
                                 (in thousands)
 
                                                March 31,    December 31,
                                                  2001           2000
                                               (unaudited)
                      ASSETS
     CURRENT ASSETS:
       Cash and investments                      $23,688        $27,340
       Contract accounts receivable, net          22,570         26,556
       Costs and estimated earnings in excess
        of billings on uncompleted contracts      11,665         10,273
       Prepaid expenses and other                  2,532          2,153
       Deferred tax asset                            929            929
          Total Current Assets                    61,384         67,251
     NET FIXED ASSETS                             14,309         15,265
     GOODWILL, net                                13,065         13,244
     OTHER ASSETS                                  4,545          2,066
          Total Assets                           $93,303        $97,826
 
          LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
       Accounts payable and accrued expenses      $9,821        $13,669
       Billings in excess of costs and
        estimated earnings on uncompleted
        contracts                                  2,380          2,902
       Current portion of capital lease
        obligation                                    43             57
          Total Current Liabilities               12,244         16,628
     NONCURRENT LIABILITIES:
       Capital lease obligation, net of
        current portion                               14             18
       Other liabilities                             599            532
       Deferred tax liability                      1,347          1,347
          Total Liabilities                       14,204         18,525
     STOCKHOLDERS' EQUITY:
       Common stock                                1,518          1,512
       Additional paid-in capital                 49,228         49,097
       Accumulated comprehensive income             (329)          (606)
       Retained earnings                          28,682         29,298
          Total Stockholders' Equity              79,099         79,301
             Total Liabilities and
              Stockholders' Equity               $93,303        $97,826
 
 
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SOURCE RWD Technologies, Inc.
    COLUMBIA, Md., April 24 /PRNewswire Interactive News Release/ --
 RWD Technologies, Inc. (Nasdaq: RWDT) today reported its financial results for
 the first quarter of 2001.
     RWD's 2001 first quarter revenue was $30.1 million, with a net loss of
 $616,000 resulting in a loss of $0.04 per share.  In 2000, first quarter
 revenue was $30.8 million, with net income of $539,000 resulting in earnings
 of $0.04 per share.
     The decline in 2001 first quarter profitability compared to a year ago
 reflected a variety of factors including: the decline in revenue; maintaining
 our skilled employee group at full strength despite lower revenue in order to
 take rapid advantage of future growth opportunities; and development of new
 service areas, augmentation of our sales staff and significant expansion in
 global marketing activities.
     During the quarter, Enterprise Systems expanded its SAP partnership to
 include the sales of RWD services and products through the SAP sales force.
 In addition, SAP and RWD have formed a company, SAP Learning Solutions, as a
 joint venture based in Singapore, with an office in Australia and an office
 soon to be opened in Japan.  RWD expects to realize the full impact of these
 SAP arrangements in the second half of 2001.
     Latitude360(TM) is marketing University360(TM), an online Learning Center
 for major corporations and professional societies.  It can be customized to
 satisfy the global training requirements of these very large organizations.
 RWD has invested significantly to develop University360 as a comprehensive
 suite of totally integrated learning components.  RWD is currently engaged in
 designing a Learning Center for a professional association with the capability
 to provide training courses for more than 60,000 of its members.
     Dr. Robert W. Deutsch, RWD's Chairman and CEO stated, "RWD's mission is to
 assure that our clients derive the highest return on their technology
 investments by providing support systems that increase worker productivity as
 well as product and/or service quality.  While temporarily experiencing flat
 marketplace demand, RWD is a growth company with excellent prospects.  Our
 financial performance in all segments of our business during the first quarter
 is attributed to the slowing down of funding for Company services by many of
 our clients.  This slowdown has also affected our ability to penetrate new
 business areas in which RWD has unique capabilities.  We expect to be over
 most of these hurdles in all business areas by the middle of this year.  We
 are currently well positioned to resume the growth rate we had prior to 1999,
 which exceeded 30 percent."
     Reflecting confidence in the long term outlook for our business, the RWD
 Board of Directors has authorized the repurchase of up to 1,000,000 shares of
 our common stock in the open market.  We believe our stock price should
 eventually reflect our true worth and provide a significant reward to our
 shareholders and to our employees.
 
     About RWD Technologies, Inc.
     RWD Technologies is a professional services company with headquarters in
 Columbia, Maryland that provides a broad range of technology solutions to the
 business problems confronting Fortune 500 companies.  The Company has three
 operational segments:
 
     -- Manufacturing Performance specializes in assisting the automotive
        manufacturers, their suppliers and other companies in the design and
        implementation of lean manufacturing processes and the training of
        the plant workforce in the launching of new vehicles to produce
        products of higher quality at a lower cost.
 
     -- Enterprise Systems has established itself as a leader in the delivery
        and maintenance of performance-based productivity solutions for
        companies implementing enterprise software packages that operate part
        or all of a company's business processes.
 
     -- Latitude360(TM) has core competencies that include every aspect of
        developing web-enabled infrastructure and delivers eSolutions and
        eLearning customized applications which enable clients to satisfy
        their documentation, customer relations, and employee training
        requirements.
 
     Established in 1988, RWD has approximately 1,100 employees located in
 18 offices in the United States, 3 offices in Europe, an office in Mexico, and
 an office in Singapore.  RWD provides services that increase productivity and
 reduce operating costs for companies in more than 20 industries.  Information
 about RWD can be found at the Corporation's World Wide Web site, www.rwd.com.
 
     Media Contact:
     RWD Technologies
     Robert T. O'Connell
     Chief Financial Officer and Senior Vice President
     BO'Connell@rwd.com
     800-448-8324
 
     Certain statements contained herein, including statements regarding
 development of the Company's services, markets, and future demands for the
 Company's services, and other statements regarding matters that are not
 historical facts, are forward-looking statements (as defined in the Private
 Securities Litigation Reform Act of 1995).  Such forward-looking statements
 include risks and uncertainties; consequently, actual results may differ
 materially from those expressed or implied thereby.  Factors that could cause
 actual results to differ materially include, but are not limited to, reliance
 on strategic partners and alliance organizations, expansion of international
 operations, reliance on the market for enterprise resource planning software,
 rapid technological change in the information technology industry, reliance on
 a few key clients, the Company's ability to attract and retain sufficient
 employees, substantial competition, concentration of revenue in the automotive
 industry, which is subject to cyclical and economic factors outside the
 Company's control, as well as various project risks associated with individual
 projects that could materially impact operating results, the Company's ability
 to effectively manage its growth, variability of operating results, and
 dependence on key personnel.
 
     RWD and RWD Technologies, Inc. are registered trademarks, and RWD
 Technologies and Latitude360 are trademarks of RWD Technologies, Inc. in the
 United States and several other countries.  All other products and names are
 or may be trademarks or registered trademarks of their respective owners.
 
 
                             RWD TECHNOLOGIES, INC.
                              STATEMENTS OF INCOME
               (unaudited) (in thousands, except per share data)
 
                                                      Quarter Ended
                                                        March 31,
                                                  2001            2000
     Revenue                                     $30,050        $30,814
     Cost of services                             24,965         23,966
       Gross profit                                5,085          6,848
     Selling, general, and administrative
      expenses                                     6,455          6,246
     Operating (loss) income                      (1,370)           602
     Other income, net                               208            254
       (Loss) income before taxes                 (1,162)           856
     Income tax (benefit) provision                 (546)           317
       Net (loss) income                           $(616)          $539
 
       Diluted (loss) earnings per share          $(0.04)         $0.04
       Basic (loss) earnings per share            $(0.04)         $0.04
 
     Weighted average shares outstanding-
       Diluted calculation                        15,151         15,404
       Basic calculation                          15,151         14,757
 
     Number of employees                           1,077          1,057
 
 
                             RWD TECHNOLOGIES, INC.
                            CONDENSED BALANCE SHEETS
                                 (in thousands)
 
                                                March 31,    December 31,
                                                  2001           2000
                                               (unaudited)
                      ASSETS
     CURRENT ASSETS:
       Cash and investments                      $23,688        $27,340
       Contract accounts receivable, net          22,570         26,556
       Costs and estimated earnings in excess
        of billings on uncompleted contracts      11,665         10,273
       Prepaid expenses and other                  2,532          2,153
       Deferred tax asset                            929            929
          Total Current Assets                    61,384         67,251
     NET FIXED ASSETS                             14,309         15,265
     GOODWILL, net                                13,065         13,244
     OTHER ASSETS                                  4,545          2,066
          Total Assets                           $93,303        $97,826
 
          LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
       Accounts payable and accrued expenses      $9,821        $13,669
       Billings in excess of costs and
        estimated earnings on uncompleted
        contracts                                  2,380          2,902
       Current portion of capital lease
        obligation                                    43             57
          Total Current Liabilities               12,244         16,628
     NONCURRENT LIABILITIES:
       Capital lease obligation, net of
        current portion                               14             18
       Other liabilities                             599            532
       Deferred tax liability                      1,347          1,347
          Total Liabilities                       14,204         18,525
     STOCKHOLDERS' EQUITY:
       Common stock                                1,518          1,512
       Additional paid-in capital                 49,228         49,097
       Accumulated comprehensive income             (329)          (606)
       Retained earnings                          28,682         29,298
          Total Stockholders' Equity              79,099         79,301
             Total Liabilities and
              Stockholders' Equity               $93,303        $97,826
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X55314703
 
 SOURCE  RWD Technologies, Inc.