IMRGLOBAL REPORTS FIRST QUARTER RESULTS: REVENUE UP 16 % SEQUENTIALLY OVER PRIOR QUARTER
First Quarter Highlights:
- Gross Profit increases 58% over previous quarter.
- Returned to profitability with 16% increase in revenue over previous quarter.
- Announced Merger with CGI Group Inc.
Clearwater, FL, April 26, 2001 - IMRglobal Corp., ("IMRglobal") (Nasdaq: IMRS), a leading global provider of end-to-end information technology solutions, today announced results for the first quarter ended March 31, 2001.
Revenue was $61.6 million for the first quarter ended March 31, 2001, an increase of 6% over the $58.3 million reported for the same quarter last year, and an increase of 16% over the $53.3 million for the fourth quarter of 2000. On a pro forma basis (excluding depreciation and amortization expenses, net of taxes), cash net income was $4.0 million for the quarter ended March 31, 2001. On the same pro forma basis, cash earnings per share-diluted was $0.09 for the quarter ended March 31, 2001.
Satish K. Sanan, Chief Executive officer of IMRglobal, said, "Despite the difficult general economic and industry specific market conditions, we are pleased to report meaningful organic growth compared to both the prior quarter and the same period last year. In addition, we are encouraged by the significant opportunities in our sales pipeline for our insurance and healthcare solutions. In particular, our strong vertical industry expertise, our eCRM tools and solutions, and our component based development solutions are providing the `sharp edges` that differentiate IMRglobal from many of our competitors enabling us to establish new customer relationships."
Mr. Sanan continued, "I am also pleased to report that our proposed merger with CGI Group Inc. is on track. As previously reported, we expect to be able to seek shareholders` approval in June. We are pleased with our choice of CGI as our strategic partner. The growing demand for business process and I.T. outsourcing make the merger particularly timely. CGI`s outsourcing experience, combined with IMRglobal`s vertical industry solutions and knowledge, strong U.S. presence and India software development centers, will give the combined company a competitive edge and position us to make significant inroads in the U.S. outsourcing market."
About IMRglobal Corp.
IMRglobal is a leading global provider of end-to-end information technology solutions to Fortune 500 and Global 2000 companies in key vertical industries. Those industries include financial services, healthcare, government, utilities, retail and manufacturing/distribution. IMRglobal`s services include business consulting, e-business, software development, application maintenance and professional services. For more information on IMRglobal, visit www.imrglobal.com.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of statements regarding historical matters and statements regarding the company`s current status, certain matters discussed herein are forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements may include those identified by the use of the words "anticipate," "believe," "estimate," "expect," "intend" and similar expressions. Actual results, performance or achievements could differ materially from these forward-looking statements. Factors that could cause or contribute to such material differences include the failure to convert prospects into actual business, risks related to our merger and acquisition strategy, variability of operating results, potential cost overruns on fixed-price projects and competition in the IT services industry. A discussion of these and other risk factors that may cause actual results to differ from these forward-looking statements can be found in the company`s periodic filings with the SEC under the Securities Exchange Act of 1934.
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