EXHIBIT 99.1
NEWS BULLETIN FROM 32605 W. Twelve Mile Rd.
[COVANSYS LOGO] Suite 250
Farmington Hills, MI 48334
NASDAQ: CVNSE
FOR FURTHER INFORMATION
AT THE COMPANY: AT JOELE FRANK, WILKINSON BRIMMER KATCHER:
David Roady Eden Abrahams / Andrew Siegel
(248) 848-2221 (212) 355-4449
droady@covansys.com ea@joelefrank.com / abs@joelefrank.com
THURSDAY, JULY 1, 2004
COVANSYS COMPLETES ANALYSIS
OF ACCOUNTING FOR CERTAIN PROPERTY AND EQUIPMENT
CONFIRMS NON-CASH CHARGE OF APPROXIMATELY $2.6 MILLION
FOR ASSETS INCLUDING MISSING, OBSOLETE, AND DISPOSED OF EQUIPMENT
FARMINGTON HILLS, MI, JULY 1, 2004 - Covansys Corporation (NASDAQ: CVNSE), a
worldwide provider of information technology services, today announced that it
has completed its analysis of accounting issues related to a recently completed
physical inventory and assessment of certain assets. Consistent with prior
reports, the Company confirmed that it anticipated taking a non-cash charge
relating to items including missing, obsolete or disposed of equipment and
furniture with a net book value of approximately $2.6 million, or less than 1%
of Covansys' total assets. Covansys has concluded that a portion of the non-cash
charge should be allocated to prior periods and has requested guidance from the
Securities and Exchange Commission regarding the appropriate periods in which
the charge should be recorded. The Company intends to file its Form 10-Q for the
quarter ended March 31, 2004 promptly after this issue has been resolved.
The Company also had an oral hearing today before a Nasdaq Listing Qualification
Panel. Covansys expects its common stock to resume trading under the ticker
symbol "CVNS" once the filing of its Form 10-Q is completed.
ABOUT COVANSYS
Covansys Corporation, (NASDAQ: CVNSE), is a global consulting and technology
services company specializing in industry-specific solutions, strategic
outsourcing and integration services through a unique onsite, off-site, offshore
delivery model that helps clients achieve rapid deployment, world-class quality
and reduced costs. Founded in 1985, Covansys has successfully delivered an array
of innovative and cost-effective business and technical solutions to leaders in
the private and public sectors. With one of the largest offshore capabilities of
any technology services provider based in the United States, Covansys has
achieved the SEI's CMM(R) Level 5 quality ratings at two of its offshore
development centers in India.
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SAFE HARBOR STATEMENT
With the exception of statements regarding historical matters and statements
concerning our current status, certain matters discussed herein are
forward-looking statements that involve substantial risks and uncertainties.
Such forward-looking statements may be identified by the words "anticipate,"
"believe," "estimate," "expect" or "intend" and similar expressions. Our actual
results, performance or achievements could differ materially from these
forward-looking statements.
Factors that could cause or contribute to such material differences include
actions by governmental or regulatory agencies, general economic conditions and
conditions in the IT industry such as the demand for IT services, public sector
government budgetary constraints, potential cost overruns on fixed-price
projects, effective application of the percentage of completion method of
accounting for fixed priced contracts, risks related to merger, acquisition and
strategic investment strategy, variability of operating results, government
regulation of immigration, exposure to regulatory, political and economic
conditions in India and Asia, competition in the IT services industry, the
short-term nature and termination provisions of contracts, economic conditions
unique to clients in specific industries and limited protection of intellectual
property rights. These and other factors are described in the Company's filings
with the U.S. Securities and Exchange Commission.
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