Excluding restructuring and other unusual charges, cash EPS was 10 cents per share diluted for the quarter ended Dec. 31, 2000, even with the prior quarter but down from last year’s December quarter of 11 cents per share. After restructuring and other unusual charges, the company reported a net loss of $8 million, or 35 cents per share diluted for the December quarter.
For the six-month transition period ended Dec. 31, 2000, the company reported cash EPS of 20 cents per share diluted before restructuring and other unusual charges, compared with 28 cents per share cash EPS for the same period last year. After restructuring and other unusual charges, the company reported a net loss of $6.3 million, or 28 cents per share diluted for the six-month transition period. Revenues were $288 million, the same as last year. The company had previously announced its change in year-end from June 30 to Dec. 31.
Total revenue during the quarter was comprised of $110 million of direct revenue and $30 million of sub-supplier billings that are processed through the company as specified in contracts with certain customers. During the quarter ended Dec. 31, 2000, the company’s revenue mix was approximately 27% e-business solutions and 73% staffing.
On Dec. 19, 2000, Analysts International announced an extensive restructuring plan designed to sharpen its focus on customers and make its operations more sales-driven. The restructuring has consolidated offices, administrative functions, recruiting, and Analysts’ practices and consultancies on a national basis and established a national sales and operations organization focused on customer service, employee retention, and market expansion. The costs associated with this were $16.1 million and cover the cost of consolidation of office facilities, employee severance, facility leases, other special compensation payments and other miscellaneous related charges associated with the restructuring, along with increased reserves against accounts receivable.
We are moving aggressively ahead with a leaner organization and an energized sales effort, said Mike LaVelle, president and chief operating officer. We see significant opportunities to seize on emerging market trends while drawing on our traditional strengths – a highly skilled staff of 4,000 technologists, a strong understanding of our customers’ business, and a culture built on meeting customer needs.
For 35 years we’ve been creating value for customers, shareholders, and employees, said Fred Lang, chairman and chief executive officer. We remain focused on helping customers manage technological change while earning a fair return for shareholders.
The company expects revenues for the first quarter of 2001 to be in the range of $145 million to $150 million and cash EPS in the range of 9 cents to 11 cents. For the 2001 year the company anticipates revenues in the range of $630 million to $645 million and cash EPS of 60 cents to 65 cents.
