Computer Management Sciences Posts Record Revenue, Net Income and Net Income Per Share for Third Quarter 1998, Names FedEx CEO Weise to Board

Business Wire, Oct 14, 1998

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Oct. 14, 1998--Today, Computer Management Sciences Inc. (`CMSI') (Nasdaq:CMSX) reported record revenue and earnings for the third quarter ended Sept. 30, 1998.

This represents the 13th consecutive record quarter since the company's IPO in 1995. The company also announced the appointment of Federal Express Corp. President and CEO Theodore L. Weise to its Board of Directors.

For third quarter 1998, total revenue increased 27% to $23.0 million, net income increased 32% to $3.2 million and net income per share increased 32% to $0.21 (diluted), compared to revenue of $18.2 million, net income of $2.4 million and net income per share of $0.16 (diluted), for the comparable third quarter of 1997. Consulting services revenue for the third quarter, which comprises 99% of total revenue for the quarter, increased 28%. During the nine months ended Sept. 30, 1998, total revenue increased 28% to $66.2 million, net income increased 39% to $9.2 million and net income per share increased 38% to $0.60 (diluted).

As a percentage of total revenue, gross profit, income from operations and net income increased to 39.6%, 20.5% and 13.9%, respectively, in the third quarter of 1998, compared to 39.3%, 18.8% and 13.3%, respectively, for the third quarter of 1997. -0-

 Quarter Ended Sept. 30,:                 1998                1997
 ------------------------                 ----                ----
                                               (Unaudited)
 Revenue                             $  23,019,251    $ 18,160,441
 Gross Profit                            9,110,472       7,138,093
 Income from Operations                  4,716,064       3,415,619
 Net Income                              3,202,717       2,420,580
 Net Income Per Share -- Basic       $        0.22    $       0.18
 Net Income Per Share -- Diluted     $        0.21    $       0.16
 Avg Shares Outstanding -- Basic        14,610,662      13,512,361
 Avg Shares Outstanding -- Diluted      15,232,775      15,205,959

 Nine Months Ended Sept. 30,:             1998               1997
 ----------------------------             ----               ----
                                               (Unaudited)
 Revenue                              $ 66,233,072     $ 51,934,107
 Gross Profit                           26,361,683       20,178,091
 Income from Operations                 13,630,791        9,425,203
 Net Income                              9,157,643        6,593,286
 Net Income Per Share -- Basic       $        0.63     $       0.50
 Net Income Per Share -- Diluted     $        0.60     $       0.43
 Avg Shares Outstanding -- Basic        14,588,319       13,256,650
 Avg Shares Outstanding -- Diluted      15,287,039       15,160,143


                 Condensed Consolidated Balance Sheets
                                     Sept. 30, 1998   Dec. 31, 1997
                                       (Unaudited)
 Cash and cash equivalents           $   7,751,288       14,550,323
 Accounts receivable, net               17,322,846       11,720,377
 Revenue earned in excess of billings    1,439,899        2,461,228
 Investments                             3,204,202        2,805,072
 Refundable income taxes                       -0-        4,358,250
 Other current assets                    7,941,905          998,024
                                       -----------     ------------
          Total current assets          37,660,140       36,893,274
                                        ----------       ----------
 Net property and equipment             23,520,221       15,498,632
 Intangible assets, net                  3,841,306        3,516,531
 Investments                             8,905,394        8,137,146
 Other assets                            5,087,265        2,077,687
                                       -----------      -----------
          Total assets               $  79,014,326       66,123,270
                                        ==========       ==========
 Current liabilities                 $   7,524,544        4,875,435
 Other liabilities                          89,132          285,147
 Total shareholders' equity             71,400,650       60,962,688
                                        ----------       ----------
          Total liabilities and
            shareholders' equity     $  79,014,327       66,123,270
                                        ==========       ==========

"We are pleased that our string of consecutive record quarters and our ability to meet and exceed analysts' earnings expectations continues," acting CEO Anthony V. Weight said. "During this quarter, we were successful in redeploying resources from completed fixed-bid projects. We are currently rolling out our updated strategic plan to ensure strong future growth in revenue and earnings."

In addition, FedEx President and CEO Weise joins the CMSI board to fill the vacancy created by the death of Director P.E. Esping, former CEO of Business Records Corporation. Mr. Weise, a FedEx veteran from the company's formative stages in 1972, assumed his current position in January after serving as Executive Vice President and Chief Operating Officer. He oversees a company utilizing one of the world's largest interactive computer networks with some 142,000 employees worldwide and revenues of $13 billion for its fiscal year ended May 31, 1998.