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[CYSIVE LOGO]
Contact: John R. Lund, CFO
Press: Penny Karas
Cysive, Inc.
703.259.2300
Katherine Mittelbusher
Press: Laura Novak
Morgen Walke Associates
212.850.5600
FOR IMMEDIATE RELEASE
CYSIVE REPORTS THIRD QUARTER RESULTS
REVENUE INCREASES 84% ANNUALLY
Reston, Va.-- October 26, 2000 - Cysive, Inc. (Nasdaq: CYSV), premier builders
of e-business architectures, today announced results for the third quarter and
the nine months ended September 30, 2000.
For the third quarter of 2000, revenue was $13.4 million, an 84% increase over
revenue of $7.3 million in the same period last year, but down sequentially from
$15.2 million in the second quarter of 2000. These results incorporate the
impact of the contract termination previously announced on August 23, 2000. Net
loss for the third quarter of 2000 (excluding a stock compensation charge) was
$455,000 or $(0.02) per share. This amount is compared to net income of $541,000
for the third quarter of 1999, or $0.02 per diluted share (excluding a stock
compensation charge and including an estimated tax expense), and net income of
$2.8 million for the second quarter of 2000, or $0.07 per diluted share
(excluding a stock compensation charge).
Nelson A. Carbonell, Jr., Chairman, President and Chief Executive Officer of
Cysive commented, "We continue to stay focused on building reliable, complex
e-business systems, and remaining at the forefront of technological advances.
In the third quarter, we worked with eight new customers, and revenue from
Global 2000 customers comprised 46% of total revenue, up from 26% of second
quarter 2000 revenues. Additionally, we have seen sequential improvement in
our retention and recruitment of talented software engineers."
Revenue for the nine months ended September 30, 2000 was $40.9 million, a 145%
increase over revenue of $16.7 million in the nine months ended September 30,
1999. Net income for the nine months ended September 30, 2000 was $3.6 million,
or $0.09 per diluted share (excluding a
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stock compensation charge). This amount is compared to net income for the nine
months ended September 30, 1999 of $1.7 million, or $0.07 per diluted share
(excluding a stock compensation charge and including an estimated tax expense).
ABOUT CYSIVE(TM)
Combining an experienced and highly skilled software engineering
staff with the use of cutting-edge technologies, Cysive has established itself
as a leading builder of custom e-business systems for customers ranging from dot
com startups to Global 2000 leaders - including Cisco Systems, Classified
Ventures (cars.com), First Union, Equifax and medibuy.com. Cysive is
headquartered in Reston, Va. with additional offices in Atlanta, Boston,
Chicago, Dallas, Mountain View, Calif., New York, and Southern California and a
sales office in Houston. Cysive can be found on the Internet at www.cysive.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Cysive's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's quarterly report on Form 10-Q
filed with the Commission on August 11, 2000, and its other filings under the
1934 Act, as amended.
- Tables to Follow -
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CYSIVE, INC.
STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 2000 1999 2000
----- ----- ----- -----
<S> <C> <C> <C> <C>
Revenues.............................................. $ 7,282 $ 13,418 $ 16,706 $ 40,922
Gross profit.......................................... 4,738 7,039 10,689 24,944
Operating expenses:
General and administrative........................ 2,201 7,844 4,619 16,951
Sales and marketing............................... 1,647 2,742 3,368 8,601
Stock compensation................................ 28 1,825 13,312 3,727
------- ------- --------- ------
Total operating expenses.............................. 3,876 12,411 21,299 29,279
------- ------- --------- ------
Pro forma operating income (loss)
(1) (2) (3) (4)................................... 890 (3,547) 2,702 (608)
Operating income (loss)............................... 862 (5,372) (10,610) (4,335)
Pro forma net income (loss) (5) (6) (7) (8) .......... $ 541 $ ( 455) $ 1,704 $ 3,624
============= ========== =========== =============
Net income (loss) .................................... $ 873 $ (1,925) $ (10,574) $ 283
============= ========= =========== ==============
Pro forma basic earnings (loss) per
share (5) (6) (7) (8)............................ $ 0.03 $ ( 0.02) $ 0.10 $ 0.14
Basic earnings (loss) per share....................... $ 0.05 $ ( 0.07) $ (0.65) $ 0.01
Weighted average shares outstanding.................. 16,254,000 26,992,083 16,254,000 25,795,873
Pro forma diluted earnings (loss) per
share (5) (6) (7) (8)............................ $ 0.02 $ ( 0.02) $ 0.07 $ 0.09
Diluted earnings (loss) per share ................... $ 0.03 $ ( 0.07) $ (0.65) $ 0.01
Weighted average shares and common
equivalent shares outstanding (9).................. 27,236,554 26,992,083 24,504,346 39,087,297
</TABLE>
NOTE :On May 8, 2000, the Company effected a 2-for-1 stock split. All shares
included in this press release have been adjusted to reflect this split.
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(1) For the three months ended September 30, 1999, pro forma operating income
excludes the non-cash stock compensation charge of $28,000.
(2) For the three months ended September 30, 2000, pro forma operating loss
excludes the non-cash stock compensation charge of $1.8 million.
(3) For the nine months ended September 30, 1999, pro forma operating loss
excludes a non-cash stock compensation charge of $13.3 million.
(4) For the nine months ended September 30, 2000, pro forma operating loss
excludes a non-cash stock compensation charge of $3.7 million.
(5) For the three months ended September 30, 1999, pro forma net income includes
an estimated $360,000 income tax expense assuming the Company operated as a
C-Corporation and excludes a non-cash stock compensation charge of $28,000.
(6) For the three months ended September 30, 2000, pro forma net income excludes
the non-cash stock compensation charge of $1.5 million (net of tax expense
related to stock charge).
(7) For the nine months ended September 30, 1999, pro forma net income includes
an estimated $1.0 million income tax expense assuming the Company operated
as a C-Corporation and excludes a non-cash stock compensation charge of
$13.3 million.
(8) For the nine months ended September 30, 2000, pro forma net income excludes
a non-cash stock compensation charge of $3.3 million (net of tax expense
related to stock charge).
(9) Weighted average shares and common equivalent shares outstanding for the
nine month period ended September 30, 1999 and for the three month period
ended September 30, 2000 are for pro forma results only. For the actual
diluted loss per share, the common equivalent shares are not included as
they would have had an anti-dilutive effect on the diluted earnings per
share calculation.
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CYSIVE, INC.
BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30,
----------------------------------
1999 2000
---- ----
<S> <C> <C>
Assets:
Current assets:
Cash....................................................................... $ 1,117 $ 6,764
Investments................................................................ -- 137,829
Accounts receivable, net.................................................... 5,464 9,727
Prepaid expenses and other assets........................................... 512 1,535
Deferred income taxes....................................................... -- 742
---------- ------------
Total current assets................................................... 7,093 156,597
Furniture, fixtures and equipment, net...................................... 530 5,556
Investments -- 28,184
Deferred income taxes....................................................... -- 4,967
Other assets................................................................ 202 380
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Total assets........................................................... $ 7,825 $ 195,684
========== =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable............................................................ $ 482 $ 753
Accrued liabilities........................................................ 2,676 7,602
---------- -------------
Total current liabilities............................................... 3,158 8,355
Commitments and contingencies............................................... -- --
Stockholders' equity
Preferred stock............................................................ -- --
Common stock................................................................ 162 282
Additional paid-in capital................................................. 29,686 212,239
Deferred stock compensation................................................. (15,312) (16,731)
Accumulated deficit........................................................ (9,869) (8,461)
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Total stockholders' equity.............................................. 4,667 187,329
---------- -------------
Total liabilities and stockholder's equity...................................... $ 7,825 $ 195,684
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</TABLE>
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CYSIVE, INC.
STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30,
-------------------------------------------
1999 2000
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (10,574) $ 283
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation............................................................... 136 762
Amortization............................................................... 16 46
Stock option compensation expense.......................................... 13,312 3,727
Loss on sale of furniture, fixtures and equipment........................... 3 110
Deferred income taxes....................................................... - (560)
Non-cash tax expense....................................................... - 1,009
Provision for doubtful accounts............................................ 590 543
Changes in assets and liabilities:
Accounts receivable..................................................... (3,984) (3,706)
Prepaid expenses and other assets........................................ (572) (389)
Accounts payable........................................................ 455 407
Accrued liabilities....................................................... 2,045 4,273
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NET CASH PROVIDED BY OPERATING ACTIVITIES 1,427 6,505
Cash flows from investing activities:
Purchase of investments, net................................................ - (120,974)
Capital expenditures....................................................... (347) (5,832)
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NET CASH USED IN INVESTING ACTIVITIES (347) (126,806)
Cash flows from financing activities:
Stockholder distributions................................................... (575) -
Proceeds from sale of common stock.......................................... - 123,189
Exercise of common stock options............................................ - 1,443
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NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (575) 124,632
Increase in cash and cash equivalents 505 4,331
Cash and cash equivalents at beginning of period 612 2,433
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Cash and cash equivalents at end of period $ 1,117 $ 6,764
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</TABLE>
