Telos Reports Results for Third Quarter 1999 - Company Financial Information

Edge: Work-Group Computing Report, Nov 22, 1999

Telos Corporation announced its third quarter 1999 financial performance.

Revenues for the three months ended September 30, 1999 were $45.5 million, an increase of $5.1 million compared to the three months ended September 30, 1998. For the nine months ended September 30, 1999, revenues were $144.0 million, or $13.0 million greater than revenues for the comparable 1998 period. The increase for the three month period is primarily a result of increased sales from the Company's Enterworks subsidiary, as well as revenues generated under a subcontract to the Consolidated Space Operations Contract, which was awarded to the Company at the end of 1998. The increase for the comparable nine month period was primarily attributable to increases in sales from the Company's Joint Recruitive Information Support Services Blanket Purchase Agreement.

The operating loss incurred by the Company for the three months ended September 30, 1999 was $2.8 million, a decrease of $0.7 million compared to the $3.5 million operating loss for the three months ended September 30, 1998. For the nine months ended September 30, 1999, the Company experienced an operating loss of $6.0 million, as compared to an operating loss of $6.1 million for the comparable 1998 period. These increases in operating profitability were principally due to increased sales volume and improvements in contract mix which produced higher margin sales, partially offset by increased investments in sales and marketing and research and development in Enterworks, Inc., the Company's web-enabled data integration software and support services subsidiary.

The Company incurred a net loss of $0.4 million for the three months ended September 30, 1999, compared to a net loss of $5.3 million for the three months ended September 30, 1998. For the nine months ended September 30, 1999, the Company incurred a net loss of $5.5 million, as compared to a net loss of $6.3 for the comparable 1998 period. The net loss for the three and nine month periods ended September 30, 1999 benefited from a $4.7 million gain recorded in connection with the sale of the Company's Field Engineering subsidiary in September 1999. The net loss of $6.3 million incurred for the nine months ended September 1998 profited from a $5.7 million gain recorded in connection with the sale of the Company's information systems division in February 1998.

The Company's consolidated financial results for the three and nine month periods ended September 30, 1999 are explained in more detail in the Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

Telos has provided information technology solutions for over thirty years. As a leading e-commerce integrator, Telos delivers secure, rapid and scaleable business-to-business and business-to- government solutions.

Telos unites internet-based business planning and development architecture with best-in-class software products, proven business processes, customer expectations, and information technology requirements to create competitive advantage through increased supply-chain velocity and Web-based commerce.

The Company's partners include Tivoli Systems, Inc. Verity, Inc., and Enterworks, Inc. Headquartered in Northern Virginia's high technology corridor, Telos maintains offices internationally. For more information about Telos Corporation, visit the Company's Web site at http://www.telos.com.