Exhibit 99.1
[BARRISTER GLOBAL SERVICES NETWORK LOGO]
PRESS RELEASE
COMPANY CONTACT:
Russell J. Matuszak
Barrister Global Services
Network, Inc.
Barrister Global Services Network Announces First Quarter Fiscal 2004 Results
BUFFALO, N.Y. - AUGUST 14, 2003 - Barrister Global Services Network,
Inc. (AMEX: BIS), a premium provider of multi-vendor IT services, today reported
its first quarter results for its fiscal year 2004, which ended on June 30,
2003.
Revenues decreased approximately 6.9% to $2,897,000 compared to
$3,113,000 for the comparable quarter last year. Revenues from hardware
maintenance contracts decreased 27.3% for the quarter to $1,660,000 from
$2,282,000 for the first quarter of the prior year. This reduction primarily
resulted from the non-renewal of a large contract by a customer of one of our
long time business partners as of September 30, 2002 and replacement of
traditional break/fix maintenance contracts with new lower priced services. This
decrease was partially offset from growth in services provided on a time and
materials basis which increased by 54.0% for the comparative first quarters,
from $803,000 to $1,237,000.
The operating loss for the first quarter ended June 30, 2003 was
$370,000 compared to an operating loss of $273,000 for the first quarter of the
prior year. The net loss for the first quarter of the current year was $318,000
compared to net earnings of $115,000 for the comparative quarter last year. The
net earnings for the first quarter of the prior year, includes a one-time gain
of $428,000 on the receipt of Common stock on demutualization of the Principal
Financial Group, Inc. The net loss for the current quarter was improved by a
gain on the sale of the Common stock of $52,000.
The cost of services decreased as a percentage of revenues from 78.8%
in the first quarter of the prior year to 76.8% in the first quarter of the
current year. This improvement primarily resulted from a lower cost of
contracted service partners supplied by the business acquired from Advantage
Innovation and used to service calls in the current quarters on a Company wide
basis.
Selling, general and administrative expenses were 36.0% of revenues for
the first quarter of this year compared to 30.0% for the comparative quarter
last year. The principal reason for this increase was expenditures for outside
consultants currently assisting the Company in strategic decisions, the
increased rent expenses of the Company's new headquarters and operation center,
higher depreciation expenses related to assets acquired in the prior year, and
amortization expense from the intangible assets acquired from Advantage
Innovation.
In June of 2002, the Company announced that it was informed by the
American Stock Exchange (AMEX) that it had fallen below certain of the AMEX's
continued listing standards. The Company submitted a plan to AMEX that would
return the Company to profitability by March 31, 2003, which it failed to meet.
In addition, the Company has not been able to regain compliance with the AMEX's
continued listing standards through the quarter ended June 30,
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2003. The Company expects to receive de-listing notice in the near future. If
the Company is delisted, trading of our common stock may be conducted in the
over-the-counter market on the "pink sheets" or, possibly, the NASD's
"Electronic Bulletin Board". In either of these cases, investors could find it
more difficult to buy or sell, or to obtain accurate quotations as to the value
of our common stock. Also the trading price per share of our common stock likely
would be reduced as a result.
"We are disappointed with our first quarter results, and have taken
several steps to reduce our SG&A expense and build revenue," stated William O.
Bray, Barrister's President and Chief Executive Officer. "We have closed a
multi-year, multi-million dollar contract that recently started and look to
close and start several other major opportunities in our pipeline, helping us to
regain lost ground later this fiscal year."
The Company will conduct an investor conference call on Friday, August
15, 2003 at 11:00 a.m. Eastern Time. You may participate in this call by dialing
1-888-453-8880 and requesting the Barrister Global Services Network call, or
number 3818825 when asked. The call will also be simultaneously broadcast live
over the internet via PR Newswire. You may listen to this call via the internet
at: www.firstcallevents.com/service/ajwz387516946gf12.html.
If you are unable to participate at the scheduled time, you may access
an audio recording of the conference call by dialing 1-866-453-6660 and entering
the pass code 137950 when prompted. This recording will be available within two
(2) hours after the call's completion and will remain accessible for throughout
the current quarter, ending September 30, 2003. The call will also be archived
on Barrister's website (www.barrister.com) for the next twelve (12) months, and
can be accessed at any time at no cost during this period.
About Barrister Global Services Network, Inc.
Barrister Global Services Network, Inc. is a provider of multi-vendor IT
services, delivering superior resolution to client/server hardware challenges.
Barrister's services range from warranty and non-warranty equipment maintenance
to managed help desk to per incident hardware repair and technology deployment
projects, as well as new POS and kiosk services for retailers. The Company
manages a vast network of service partners - with over 15,000 certified
technicians, serving more than 19,200 locations throughout the U.S., Canada,
Mexico and Puerto Rico. Barrister is headquartered in Buffalo, New York. For
more information, please visit www.barrister.com, send an e-mail to
info@barrister.com or call toll free 866-565-2476.
This press release contains "forward-looking statements", within the meaning
of the Private Security Litigation Reform Act of 1995, that are based on
current expectations, estimates and projections about the industry, markets
and economic environment in which the Company operates. Such statements
involve risks and uncertainties that could cause actual results to differ
materially from the results discussed in these statements. These risks are
detailed in the Company's periodic reports filed with the Securities and
Exchange Commission. *Barrister Global Services Network is a trademark,
tradename and service mark, and Barrister is a registered trademark
and service mark of Barrister Global Services Network, Inc.
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BARRISTER GLOBAL SERVICES NETWORK, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three months ended
-----------------------------------
June 30 June 30
2003 2002
------------------- --------------
REVENUES $ 2,897 $ 3,113
COSTS AND EXPENSES:
Cost of services 2,225 2,453
Selling, general and administrative expenses 1,042 933
------------- -------------
OPERATING LOSS (370) (273)
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OTHER EXPENSE (INCOME):
Interest expense to related party - 4
Other interest income - (31)
Common stock received from demutualization - (428)
Gain on sale of Common stock (52) -
------------- -------------
Total other income (52) (455)
------------- -------------
(LOSS) EARNINGS BEFORE INCOME TAXES (318) 182
Income tax expense (benefit) - 67
------------- -------------
NET (LOSS) EARNINGS $ (318) $ 115
============= =============
BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE: $ (.03) $ .01
============== =============
Weighted average number of common shares outstanding:
Basic 11,901 11,866
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Diluted 11,901 11,872
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BARRISTER GLOBAL SERVICES NETWORK, INC.
CONDENSED BALANCE SHEETS
(In thousands)(unaudited)
JUNE 30 MARCH 31
2003 2003
---- ----
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 1,526 $ 1,630
Short-term investments 697 1,155
Accounts receivable 1,395 1,272
Service parts inventory 647 575
Prepaid expenses 42 29
Income taxes 82 82
------------ -------------
Total current assets 4,389 4,743
------------ -------------
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, AT COST 1,675 1,639
Less accumulated depreciation 858 799
------------ -------------
Net equipment and leasehold improvements 817 840
------------ -------------
GOODWILL 2,192 2,192
INTANGIBLE ASSETS 150 168
DEFERRED TAX ASSETS 77 77
OTHER ASSETS 48 47
------------ -------------
$ 7,673 $ 8,067
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt $ 859 $ 870
Accounts payable 506 551
Accrued compensation and benefits 390 527
Customer advances and unearned revenue 1,365 1,230
Other accrued expenses 40 55
------------ -------------
Total current liabilities 3,160 3,233
------------ -------------
DEFERRED COMPENSATION 149 175
LONG-TERM DEBT, EXCLUDING CURRENT INSTALLMENTS 814 835
STOCKHOLDERS' EQUITY :
Preferred stock - -
Common stock, $.24 par value, 11,901,326
shares outstanding 2,867 2,867
Additional paid-in capital 23,025 23,025
Accumulated deficit (22,291) (21,973)
Treasury stock at cost, 43,637 shares (27) (27)
Note receivable for treasury shares issued (24) (24)
Accumulated other comprehensive loss - (44)
------------ -------------
Total stockholders' equity 3,550 3,824
------------ -------------
$ 7,673 $ 8,067
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