GSE Systems Announces 2015 First Quarter Financial Results
Q1 2015 OVERVIEW
- Revenue increased to $14.0 million from $8.7 million in Q1 2014, driven by $5.2 million of incremental revenue from the acquisition of Hyperspring, LLC. Excluding Hyperspring, revenue in Q1 2015 was $8.8 million.
- Gross profit rose 44.9% to $3.2 million, or 23.0% of revenue, from $2.2 million, or 25.5% of revenue, in Q1 2014.
- Operating loss narrowed to $0.4 million from $2.1 million in Q1 2014.
- Net loss narrowed to $0.5 million, or $0.03 per diluted share, from a net loss of $2.0 million, or $0.11 per diluted share, in Q1 2014.
- Booked $18.1 million of orders, compared to $8.4 million in Q4 2014 and $6.3 million in Q1 2014.
At March 31, 2015
- Total cash and equivalents of $11.6 million, or $0.65 per diluted share, excluding $4.2 million of restricted cash.
- Working capital of $11.3 million.
- 0 long-term debt.
- Backlog of $52.4 million, up from $48.4 million at end of Q4 2014.
Sykesville, MD – May 14, 2015 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy industry performance improvement company, today announced financial results for the first quarter (“Q1”) ended March 31, 2015. Results for Q1 2015 include the results of Hyperspring, LLC (“Hyperspring”), which was acquired on November 14, 2014.
With the acquisition of Hyperspring, GSE has commenced reporting selected financial results for two business segments: Staff Augmentation, which provides personnel to fulfill staff positions on a short-term basis to energy industry customers; and Performance Improvement Solutions, which provides simulation, engineering and training solutions and services to the nuclear and fossil fuel power industry and to the chemical and petrochemical industries. Hyperspring’s results are included in the Staff Augmentation segment.
Jim Eberle, Chief Executive Officer of GSE, said, “Our Q1 2015 results benefited from a full quarter of contribution by Hyperspring as well as the continued improvement of our Performance Improvement Solutions segment. We are seeing early evidence that the actions we took last year to position GSE for the future are beginning to pay-off. Our revenues are increasing, our losses are narrowing and our backlog is growing. Looking to the balance of 2015, we aim to expand Hyperspring’s U.S. nuclear customer base while diversifying its client base into the fossil power industry, in part by leveraging a number of cross-selling opportunities with our Performance Improvement Solutions segment. Having restructured and reduced the cost structure at Performance Improvement Solutions in 2014, this year we are investing for growth, including in resources aimed specifically at the chemical and petrochemical industries. IntelliQlik continues its development of a next generation, cloud-based software platform for online learning and learning management for all energy sectors and remains on target for a launch in late 2015. Finally, our balance sheet remains strong, with approximately $11.6 million of unrestricted cash and equivalents at quarter-end and no long-term debt, providing us with flexibility to selectively pursue additional growth opportunities as they arise.”
About GSE Systems, Inc.
GSE is a world leader in real-time high-fidelity simulation, providing a wide range of simulation, training, consulting and engineering solutions to the power and process industries. Its comprehensive and modular solutions help customers achieve performance excellence in design, training and operations. GSE’s products and services are tailored to meet specific client requirements such as scope, budget and timeline. The Company has over four decades of experience, more than 1,100 installations, and hundreds of customers in over 50 countries spanning the globe. GSE Systems is headquartered in Sykesville (Baltimore), Maryland, with offices in Huntsville, Alabama; Chennai, India; Nyköping, Sweden; Stockton-on-Tees, UK; Glasgow, UK; and Beijing, China.
We make statements in this press release that are considered 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. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.