News

UBICS makes tax adjustment, announces second-quarter results

August 14, 2002

CANONSBURG, Pa. -- Technology and kiosk services provider UBICS Inc. (NASDAQ:UBIX), citing a $669,000 deferred tax asset adjustment during the second quarter, registered a net loss of $858,000 during the quarter, ending June 30. The company lost $535,000 during the same quarter in fiscal year 2001.

UBICS had revenue of $6.6 million during the quarter, down 37.7 percent from the $10.6 million reported during the second quarter of 2001.

Company officials did not go into specifics on the deferred tax asset adjustment. According to UBICS president and chief executive officer Robert Harbage, the company hired a new auditing firm, BDO Seidman LLP, and decided to evaluate its deferred tax assets.

For the six months ending June 30, UBICS reported a net loss of $3.5 million on revenue of $13.4 million. In 2001, the company had a net loss of $1.3 million on revenue of $21.4 million after two quarters.

Harbage cautioned that the company's third-quarter performance could mirror the first six months of 2002.

"Because there is no way to know when the overall economy will find the solid foundation on which to begin a substantial turnaround, we believe that the near-term performance of our IT services and Internet solutions businesses will be consistent with their performance in the first two quarters of 2002," Harbage said in a news release.