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Analysts International Corporation Reports 2008 First Quarter Financial Results
Market Wire, April, 2008
Analysts International Corporation (NASDAQ: ANLY), a diversified IT services company, today reported its first quarter results for 2008.
-- Revenues totaled $82.8 million for the first quarter of 2008, compared
to $89.1 million for the comparable quarter a year ago. This decrease in
revenue is largely the result of lower headcount in our staffing business
and the Company transitioning to provide clients with higher-margin
services.
-- Including special charges of $1.9 million, Analysts International
Corporation reported a net loss of $1.0 million, or $0.04 per diluted share
for the first quarter of 2008, compared to a net loss of $2.0 million or
$0.08 per diluted share for the first quarter of 2007. These special
charges consisted primarily of lease restructurings, severance payments and
other consulting costs associated with executing on the Company's new
strategic plan in addition to advisory costs incurred in connection with
the unsolicited proposal received from Koosharem Corporation.
-- Excluding special charges, the Company earned net income of $818,000
in the first quarter of 2008, compared to a net loss of $823,000 in the
comparable quarter a year ago.
-- Gross profit increased by $41,000 from first quarter 2007 to first
quarter 2008, despite a $6.3 million revenue decrease in the same period of
time. Our gross margin for the first quarter 2008 was 17.7% of revenue, a
1.3% improvement when compared to the year-ago quarter.
-- Selling, administrative and other expenses declined by $1.6 million.
"In December 2007, we began the work outlined in our strategic plan to transform AIC into a more profitable, value-driven IT services company, and I am pleased with our initial progress," said Elmer Baldwin, President and CEO. "In the first quarter, we made important strides towards streamlining our back-office and corporate support functions in addition to building a high-caliber leadership team to drive our transformation. We also began executing our strategy to focus on higher-margin opportunities, while continuing to meet the current staffing needs of our clients, and are pleased by the positive market reaction to our higher value service offerings."
"While our first quarter results are encouraging, we have considerable work ahead of us," added Baldwin. "Achieving sustained profitability will require continued focus, discipline and a commitment to delivering results at all levels of AIC."
The Company also announced that Walter "Mic" Michels, the company's Controller and Assistant Treasurer, has been appointed interim Chief Financial Officer. The Company continues to seek a permanent replacement for its former CFO David Steichen, who left AIC in March 2008 as the result of a management restructuring.
Michels, 41, joined AIC in July 2004. Prior to AIC, he served as Chief Financial Officer and General Counsel for Wadsworth Companies, Inc., a provider of home and business improvement contracting services. Michels has also served as an auditor at Deloitte & Touche. In addition to serving as interim CFO, Michels will continue to serve as Controller and Assistant Treasurer.
Analysts will host a conference call today at 9:00 am CT to discuss first quarter 2008 results. Interested parties may access the call by dialing 1-800-762-8779, or 1-480-629-9029 for international participants, and asking for the Analysts International conference call. Live audio of the conference may also be accessed via the Internet at www.analysts.com , where it will be archived. Interested parties can also hear a replay of the call from 12:00 pm CT on April 22, 2008 to 10:59 pm CT on April 29, 2008, by calling 1-800-406-7325, or 1-303-590-3030 for international callers, and using access code 3871394.
About Analysts International Corporation
Headquartered in Minneapolis, MN, Analysts International Corporation (AIC) (NASDAQ: ANLY) is a diversified technology services company. With sales and customer support offices in the United States and Canada, AIC provides information technology solutions and staffing services, including: Technology Solutions, which provides network services, infrastructure, application integration, IP telephony and hardware solutions to the middle market; Professional Services, which provides highly skilled project managers, business analysts, developers and other IT consultants to assist its clients with strategic change; and IT Resources Staffing, which provides best value, best response supply of resources to high-volume clients. For more information, visit www.analysts.com .
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