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): March 16, 2005
GSE Systems, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-26494 52-1868008
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(State or other jurisdiction (Commission (I.R.S. employer
of incorporation) file number) identification no.)
9189 Red Branch Road, Columbia, MD 21045
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (410) 772-3500
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(Former name or former address, if changed since last report)
Item 8. Other Events
http://www.gses.com
AT THE COMPANY
John V. Moran
Chief Executive Officer
410-772-3589
FOR IMMEDIATE RELEASE
GSE Systems Announces First Quarter Results
Columbia, Maryland, May 10, 2005-- GSE Systems, Inc. (GSE) (AMEX:GVP), a leading
global provider of real-time simulation and training solutions to the energy,
process, manufacturing and government sectors, reported net loss of $1.04
million or $0.12 per diluted share for the quarter ended March 31, 2005. This
compares to a net income of $64,000 or $0.01 per diluted share in the comparable
quarter in 2004. Revenue for the first three months of 2005 was $6.3 million,
compared to $7.6 million in the first quarter of 2004.
Significant changes between the quarter to quarter results reflects several
factors, primarily a marked increase in business development activities and
expenses and the delay in the award of several large simulation projects.
John V. Moran, GSE's Chief Executive Officer said "The delay in the award of
several large international nuclear projects had a significant impact on
results. Over the course of the first quarter we took the opportunity to reduce
our operating costs in a significant way and look forward to more positive
results for the remainder of the year. Our fossil simulation business continued
its strong growth, and we entered into contracts with both Westinghouse Electric
Company LLC and Pebble Bed Modular Reactor (Pty) Ltd of South Africa to utilize
GSE technology in the design of next generation nuclear power plants."
* * *
GSE Systems, Inc. provides real-time simulation and training solutions. The
Company has over three decades of experience, over 250 applications, and 100
customers in more than 25 countries. Our software, hardware and integrated
solutions leverage proven technologies to deliver real-world business advantages
to the process and power industries worldwide including specialty chemical, food
and beverage, petroleum refining, pharmaceutical, and fossil and nuclear power
generation. GSE Systems is headquartered in Columbia, Maryland. Our global
locations include offices in Sweden, Japan and China. Information about GSE
Systems is available via the Internet at http://www.gses.com.
This news release contains forward-looking statements that involve risks and
uncertainties. We use words such as "expects", "intends" and "anticipates" to
indicate forward looking statements. Our actual future results may differ
materially due to a number of factors, including but not limited to, delays in
introduction of products or enhancements, size and timing of individual orders,
rapid technological changes, market acceptance of new products and competition.
These and other factors are more fully discussed in the Company's annual report
on Form 10-K for the year ended December 31, 2004, periodic reports and
registration statements filed with the Securities and Exchange Commission.
If any one or more of these expectations and assumptions proves incorrect,
actual results will likely differ materially from those contemplated by the
forward-looking statements. Even if all of the foregoing assumptions and
expectations prove correct, actual results may still differ materially from
those expressed in the forward-looking statements as a result of factors we may
not anticipate or that may be beyond our control. While we cannot assess the
future impact that any of these differences could have on our business,
financial condition, results of operations and cash flows or the market price of
shares of our common stock, the differences could be significant. We do not
undertake to update any forward-looking statements made by us.
GSE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Three months ended
March 31,
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2005 2004
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Contract revenue $ 6,293 $ 7,561
Cost of revenue 5,238 5,784
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Gross profit 1,055 1,777
Operating expenses 2,078 1,553
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Operating income (loss) (1,023) 224
Other expense, net (68) (143)
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Income (loss) before income taxes (1,091) 81
Provision (benefit) for income taxes (49) 17
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Net income (loss) $ (1,042) $ 64
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Basic earnings (loss) per common share: $ (0.12) $ 0.01
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Weighted average shares outstanding - Basic 8,996,373 8,949,706
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Diluted earnings (loss) per common share $ (0.12) $ 0.01
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Weighted average shares outstanding - Diluted 8,996,373 9,017,105
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Selected balance sheet data
March 31, 2005 December 31, 2004
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Cash and cash equivalents $ 94 $ 868
Current assets 9,714 10,439
Total assets 13,445 14,228
Current liabilities $ 8,094 $ 7,781
Long-term liabilities 505 502
Stockholders' equity 4,846 5,945