On-Site Announces Q2 Earnings, Net Income Of $541,474
Friday, August 02, 2002
ALEXANDRIA, Va.--Aug. 1, 2002--On-Site Sourcing Inc. (Nasdaq: ONSS), a provider of technology-driven document management solutions, today reported its financial results for the second quarter of 2002. The Company announced revenue for the second quarter of 2002 of $10.3 million, the same as the second quarter of 2001. Revenue growth was affected by both a weak business environment and the Company phasing out its Facilities Management Division during the fourth quarter of 2001. Revenue from the Company's Imaging Services Division increased 50% to $4.1 million, up from $2.7 million during the second quarter of 2001. Gross margin increased from 36% in the second quarter of 2001 to 45% in the second quarter of 2002. The increase was due to effective utilization of labor, the use of automated applications in the Company's Imaging divisions, and the phasing out of the Company's Facilities Management division. Net Income was $541,474, or $0.10 per share on a diluted basis, for the second quarter of 2002, compared to $420,233, or $0.08 per share on a diluted basis for the second quarter of 2001. Six Months Ended June 30, 2002: Revenues for the six months ended June 30, 2002 and 2001 were $19.2 million and $19.8 million respectively. Net Income was $661,449, or $0.12 per share on a diluted basis, for the six months ended June 30, 2002, compared to $662,413, or $0.13 per share on a diluted basis, in 2001. Company Guidance The Company is comfortable with earnings per share guidance given earlier this year which stated the Company expects earnings per share in the range of $0.30 to $0.34 per share on a diluted basis. In light of a weak business environment, the Company expects revenues to be lower than the initial guidance range of $44 to $46 million. The Company cautioned investors not to expect sequential quarterly growth, but to evaluate the results on an annual basis. Mr. Christopher Weiler, President and CEO, commented, "Although revenues are flat compared to last year and we are faced with a weak economic environment, we continue to maintain profitability, cut costs, and invest in the On-Site business model. With regard to the ongoing investigations of public companies occurring in the marketplace, law firms and certain governmental agencies are heavily dependent upon electronic discovery and other forensic type services. On-Site has played a key role in many of the ongoing investigations conducted by government regulatory agencies. Our ability to facilitate the searching of hundreds of thousands of documents, emails, and other electronic files is in demand."