<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 29, 1999
----------------
National TechTeam, Inc.
-------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-16284 38-2774613
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
835 Mason Street, Suite 200 Dearborn, MI 48124
- --------------------------------------------------------------------------------
(Address of principal executive offices) (City, State) (Zip Code)
Registrant's telephone number, including area code (313) 277-2277
--------------------------
- --------------------------------------------------------------------------------
(Former name of former address, if changed since last report.)
<PAGE> 2
ITEM 5. OTHER EVENTS.
On April 29, 1999, the Company issued the press release attached as Exhibit
2.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
2.1 Press release dated on April 29, 1999 "NATIONAL TECHTEAM ANNOUNCES
REVENUES AND EARNINGS FOR THE FIRST QUARTER 1999"
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONAL TECHTEAM, INC.
Dated: April 29, 1999 By: /s/ M. Anthony Tam
------------------------------------
M. Anthony Tam
Vice President, Chief Financial
Officer and Treasurer
2
<PAGE> 3
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
EX-99.2.1 Press Release dated on April 29, 1999 "National Techteam
Announces Revenues and Earnings for the First Quarter 1999".
<PAGE> 1
[TECH TEAM LOGO]
NEWS RELEASE
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
FOR IMMEDIATE RELEASE-- APRIL 29, 1999 International Provider of Computer Services
- --------------------------------------
</TABLE>
National TechTeam, Inc.
835 Mason Street, Suite 200
Dearborn, Michigan 48124 NASDAQ/NM - "TEAM"
------------------
CONTACT:
NATIONAL TECHTEAM, INC. NATIONAL TECHTEAM, INC.
M. Anthony Tam Victoria H. Neville
Vice President and Director of Marketing/Communications and
Chief Financial Officer Investor Relations
(313) 277-2277 (313) 277-2277
NATIONAL TECHTEAM, INC. ANNOUNCES REVENUES
------------------------------------------
AND EARNINGS FOR THE FIRST QUARTER 1999
---------------------------------------
DEARBORN, MICHIGAN, April 29, 1999...NATIONAL TECHTEAM Inc., Nasdaq symbol
("TEAM"), today reported revenues and earnings for the first quarter 1999. For
the quarter ended March 31, 1999, revenues were $34,087,210, a 28.8% increase
over the $26,457,087 reported for the first quarter of 1998 and the highest
revenues ever reported in the Company's history. Net income for the quarter was
$226,155, or $0.02 per share, double the income from the corresponding quarter
in 1998 of $141,059, or $0.01 per share.
"The market for outsourced desktop management services remains strong. We will
continue to capitalize on this trend as we move forward throughout the year and
into the next century. Our main focus will be on investing in our core strengths
and value-added services," said Harry A. Lewis, President and CEO. "This growth
in the desktop management services market is reflected in the strong growth in
revenues for National TechTeam's services. For example, the Desktop Management
line, including help desk, systems integration, training and staffing, increased
revenues 17.7% to $21,875,018 from $18,579,735 in the first quarter 1998. These
revenues and earnings are expected to grow as the new projects announced in
March of 1999 are implemented and expanded."
In line with our announced cost containment efforts, we are continuing to
streamline our operations and integrate our subsidiaries. As a result, Sales,
General and Administrative costs continue to be reduced as a percentage of
revenue.
-more-
<PAGE> 2
NATIONAL TECHTEAM, INC. is a premier provider of DESKTOP MANAGEMENT SERVICES to
large national and multi-national corporations, government agencies and service
organizations. The Company offers its services through three global units: (i)
CORPORATE SERVICES, which provides corporations with desktop management and
related support services including help desk, network management & systems
integration, custom training, and technical staffing. (ii) OEM CALL CENTER
SERVICES, which provides end user customers of its clients with inbound
telephone support for their computer products; and (iii) TECHTEAM CAPITAL GROUP,
which consists primarily of leasing computer-related hardware and integrated
services to corporate customers. National TechTeam is traded under the symbol
"TEAM".
Information about National TechTeam and its services are available at
http://www.techteam.com or by calling 1-800-522-4451.
The foregoing contains forward-looking statements. The matters expressed in such
statements are subject to numerous uncertainties and risks including but not
limited to general economic conditions in the markets in which TechTeam
operates, fluctuation in demand for computer related services and products, and
current expectations of TechTeam or its management. Should one or more of those
uncertainties or risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described as
forward-looking statements. TechTeam does not intend to update those
forward-looking statements.
NATIONAL TECHTEAM, INC.
FIRST QUARTER RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Quarter Ended March 31 1999 1998
---------------------- ---- ----
<S> <C> <C>
Revenues $34,087,210 $26,457,087
Income/(Loss) Before Tax Provisions 572,755 444,459
Tax Provisions 346,600 303,400
Net Income/(Loss) 226,155 141,059
Basic and Diluted Earnings / (Loss)
Per Share 0.02 0.01
Weighted Average Number of Common
Shares and Common Share
Equivalents Outstanding
Basic 13,483,040 15,423,402
Diluted 13,521,265 15,635,680
----------------------------------------------------------------------------------------------------------------
</TABLE>
###
<PAGE> 3
National TechTeam, Inc.
Supplementary Data for Quarterly Press Release
First Quarter 1999
<TABLE>
<CAPTION>
FIRST QUARTER
-------------------------------------------
1999
OVER/(UNDER)
1999 1998 1998
------------- ------------ -------------
<S> <C> <C> <C>
Revenues
Corporate Services
Corporate help desk/call center services $ 9,013,943 $ 6,775,865 $ 2,238,078
Technical staffing 6,470,167 7,204,655 (734,488)
Systems integration 4,996,296 2,750,996 2,245,300
Training programs 1,394,612 1,848,219 (453,607)
------------- ------------ -------------
21,875,018 18,579,735 3,295,283
OEM Call Center Services 8,210,409 5,768,203 2,442,206
TechTeam Capital Group 4,001,783 2,109,149 1,892,634
------------- ------------ -------------
Total revenues $ 34,087,210 $26,457,087 $ 7,630,123
============ ============ =============
Gross profit
Amount $ 5,683,658 $ 5,058,146 $ 625,512
Percentage 16.7% 19.1% (2.4)%
Earnings before Interest, Taxes,
Depreciation and Amortication (EBIDTA)
Amount $ 5,368,569 $ 3,504,954(1) $ 1,863,615
Percentage 15.7% 13.2% 2.5%
Sales, General and Administrative
Amount $ 5,065,525 $ 4,665,187 $ 400,338
Percentage 14.9% 17.6% (2.7)%
Interest expense
Amount $ 232,281 $ 336,072 $ (103,791)
Percentage 0.7% 1.3% (0.6)%
Interest income
Amount $ 191,988 $ 614,087 $ (422,099)
Percentage 0.6% 2.3% (1.7)%
Income before tax provisions
Amount $ 572,755 $ 444,459 $ 128,296
Percentage 1.7% 1.7% 0.0%
Tax provisions
Amount $ 346,600 $ 303,400 $ 43,200
Effective tax rate
Federal 33.9% 34.6% (0.7)%
============= ============ =============
Other 40.3% 51.5% (11.2)%
============= ============ =============
Total 60.5% 68.3% (7.8)%
============= ============ =============
(1) Adjusted to 1999 classifications
<CAPTION>
First Quarter
1999
-------------
<S> <C>
Percentage of Business by Sector
Automotive 28.1%
OEM support 24.1%
Transportation services 4.5%
Financial services 2.1%
Government 4.9%
Insurance 4.5%
All Other 31.9%
-------------
100.0%
=============
</TABLE>
