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EXHIBIT 99.1
[CYSIVE LOGO]
CONTACT: John R. Lund, CFO
Press: Penny Karas
Cysive, Inc.
703.259.2300
Katherine Mittelbusher
Press: Eileen King
Morgen Walke Associates
212.850.5600
FOR IMMEDIATE RELEASE
CYSIVE POSTS RECORD QUARTERLY REVENUE OF $15.2 MILLION
Technical Expertise and Quality Focus Continue to Drive Growth
Reston, Va. - July 25, 2000 - Cysive, Inc. (Nasdaq: CYSV), premier builders of
e-business architectures, today announced results for the second quarter ended
June 30, 2000.
For the second quarter of 2000, revenue increased 190% from the same period in
1999 to $15.2 million, and increased 24% over $12.3 million reported for the
first quarter of 2000. Operating income for the second quarter of 2000
(excluding a stock compensation charge) was $1.6 million, representing an
operating margin of approximately 11%. This amount is compared to operating
income of $1.2 million (excluding a stock compensation charge) for the second
quarter of 1999 and operating income of $1.3 million for the first quarter of
2000 (excluding a stock compensation charge). Net income for the second quarter
of 2000 (excluding a stock compensation charge) was $2.8 million, or $0.07 per
diluted share. This amount is compared to net income of $746,000 for the second
quarter of 1999, or $0.03 per diluted share (excluding a stock compensation
charge and including an estimated income tax expense), and net income of $1.3
million for the first quarter of 2000, or $0.04 per diluted share (excluding a
stock compensation charge).
"We continue to put in place the necessary building blocks to drive the
growth of our business model, and another quarter of record revenue reflects the
success we're achieving," said Nelson A. Carbonell, Jr., Chairman, President and
Chief Executive Officer of Cysive. "Our highly skilled software engineers create
e-business solutions that are leading the industry in terms of technological
complexity, scalability and reliability. These qualities have come to represent
the cornerstone of our business. Cysive's reputation for excellence continues to
drive our new business, while our repeat
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business is a testament to the fact that our customers recognize that we can be
called upon to deliver advanced, custom solutions that give them a competitive
advantage."
Carbonell continued, "We remain focused on providing high quality,
specialized business systems to our customers. It is this commitment to quality,
and our efficient engineering model, that continues to deliver strong revenue
growth. Maintaining our position as a technology leader and innovator will
continue to distinguish Cysive as the provider of choice for organizations
seeking cutting-edge technology solutions to drive their businesses."
For the six months ended June 30, 2000, Cysive's revenue of $27.5 million
increased from $9.4 million for the six months ended June 30, 1999. Operating
income for the six months ended June 30, 2000 was $2.9 million compared to an
operating income of $1.8 for the six months ended June 30, 1999 (in both cases,
excluding a stock compensation charge). Net income for the six months ended June
30, 2000 was $4.1 million, or $0.10 per diluted share (excluding a stock
compensation charge). This amount is compared to a net income for the six months
ended June 30, 1999 of $803,000, or $0.04 per diluted share (excluding a stock
compensation charge and including an estimated income 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, 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 prospectus dated March 17, 2000
and its other filings under the 1934 Act, as amended.
- Tables to Follow -
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CYSIVE, INC.
STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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1999 2000 1999 2000
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<S> <C> <C> <C> <C>
Revenues .............................................. $ 5,246 $ 15,209 $ 9,424 $ 27,504
Gross profit .......................................... 3,303 9,688 5,951 17,905
Operating expenses:
General and administrative ......................... 1,125 4,963 2,419 9,107
Sales and marketing ................................ 948 3,116 1,720 5,859
Stock compensation ................................. 13,266 935 13,284 1,901
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Total operating expenses .............................. 15,339 9,014 17,423 16,867
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Pro forma operating income
(1)(2)(3)(4) ....................................... 1,230 1,609 1,812 2,939
Operating income (loss) ............................... (12,036) 674 (11,472) 1,038
Pro forma net income(5)(6)(7)(8) ...................... $ 746 $ 2,784 $ 803 $ 4,079
============ ============ ============ ============
Net income (loss) ..................................... $ (12,022) $ 1,857 $ (11,447) $ 2,208
============ ============ ============ ============
PRO FORMA BASIC EARNINGS PER SHARE (5)(6)(7)(8) ....... $ 0.05 $ 0.10 $ 0.05 $ 0.16
BASIC EARNINGS (LOSS) PER SHARE ....................... $ (0.74) $ 0.07 $ (0.70) $ 0.09
Weighted average shares outstanding ................... 16,254,000 27,738,327 16,254,000 25,810,547
PRO FORMA DILUTED EARNINGS PER SHARE(5)(6)(7)(8) ...... $ 0.03 $ 0.07 $ 0.04 $ 0.10
Diluted earnings (loss) per share ..................... $ (0.74) $ 0.05 $ (0.70) $ 0.06
Weighted average shares and common equivalent
shares outstanding (9) ............................. 23,807,024 40,452,461 20,991,845 39,441,353
</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 June 30, 1999, pro forma operating income
excludes the non-cash stock compensation charge of $13.3 million.
(2) For the three months ended June 30, 2000, pro forma operating income
excludes the non-cash stock compensation charge of $935,000.
(3) For the six months ended June 30, 1999, pro forma operating income excludes
a non-cash stock compensation charge of $13.3 million.
(4) For the six months ended June 30, 2000, pro forma operating income excludes
a non-cash stock compensation charge of $1.9 million.
(5) For the three months ended June 30, 1999, pro forma net income includes an
estimated $498,000 income tax expense assuming the Company operated as a
C-Corporation and excludes a non-cash stock compensation charge of $13.3
million.
(6) For the three months ended June 30, 2000, pro forma net income excludes the
non-cash stock compensation charge of $927,000 (net of tax expense related
to stock charge).
(7) For the six months ended June 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 six months ended June 30, 2000, pro forma net income excludes a
non-cash stock compensation charge of $1.9 million (net of tax expense
related to stock charge).
(9) Weighted average shares and common equivalent shares outstanding for the
three and six month periods ended June 30, 1999 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 SHEET
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30,
----------------------
1999 2000
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ASSETS:
CURRENT ASSETS:
<S> <C> <C>
CASH ................................................. $ 869 $ 79,735
Investments .......................................... -- 94,281
Accounts receivable, net ............................. 4,214 9,989
Prepaid expenses and other assets .................... 243 841
Deferred income taxes ................................ -- 412
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Total current assets ............................. 5,326 185,258
Furniture, fixtures and equipment, net ............... 426 4,675
Deferred income taxes ................................ -- 4,733
Other assets ......................................... 196 380
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Total assets ..................................... $ 5,948 $ 195,046
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable ..................................... $ 151 $ 1,068
Accrued liabilities .................................. 1,668 6,347
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Total current liabilities ......................... 1,819 7,415
Commitments and contingencies ........................ -- --
Stockholders' equity
Preferred stock ...................................... -- --
Common stock ......................................... 162 279
Additional paid-in capital ........................... 24,378 205,559
Deferred stock compensation .......................... (10,032) (11,671)
Accumulated deficit .................................. (10,379) (6,536)
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Total stockholders' equity ........................ 4,129 187,631
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Total liabilities and stockholder's equity .............. $ 5,948 $ 195,046
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