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UBICS announces third-quarter figures

February 25, 2002

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CANONSBURG, Pa. - Citing market conditions and the impact of the Sept. 11 terrorist attacks, kiosk designer and IT consultant UBICS Inc. (NASDAQ:UBIX) on Nov. 9 announced a net loss of $2.2 million (31 cents per share) on revenue of $9.3 million for the third quarter ending Sept. 30. The company earned $319,000 (five cents per share) on revenues of $11.6 million during the same quarter in 2000.

UBICS absorbed $3.4 million in restructuring and special charges during the quarter. The charges were a result of writing down receivables, impaired assets, rent-related charges, equipment depreciation and changes in employee benefits, the company said in an earnings release.

The company took $2.8 million in special charges during the third quarter in 2000, but still managed to record a profit. But UBICS president and chief executive officer Robert Harbage said outside influences have had a detrimental effect on the company's performance during 2001.

"The negative economic trends and slowdowns in capital spending has made this a difficult year for information technology services in general, Harbage said in a news release. "The recent events of Sept. 11 and resulting global uncertainty has further exacerbated the conditions we face."

Harbage added that the company, despite the current economic woes, is adding sales personnel in the United States and Europe.

For the nine months ending Sept. 30, UBICS has lost $3.5 million on $30.7 million in revenue. During the same period last year, the company recorded a $137,000 profit on $31.1 million in revenue.

In early trading on Nov. 9, UBICS stock was down nine cents to 56 cents, a loss of 13.9 percent.