EXHIBIT 99
[LOGO] Company Contact: Investor Contact:
Richard D. Falcone, CFO Joseph M. Zappulla
TACT Wall Street Investor Relations
732-499-8228 212-714-2445
rfalcone@tact.com jzappulla@wallstreetir.com
TACT REPORTS FIRST QUARTER FINANCIAL RESULTS
NEW YORK, New York, May 14, 2003 - The A Consulting Team (`TACT') (Nasdaq
SmallCap: TACX), an end-to-end IT services and e-services provider, today
reported financial results for its first quarter ended March 31, 2003. Revenue
was $5.1 million, a decrease of $1.4 million from the first quarter of the prior
year and $965,000 from the previous quarter. The Company reported a net loss of
$(144,000) or $(0.02) per share for the first quarter, which included
depreciation and amortization charges of $195,000, compared to net earnings of
$499,000 or $0.07 per share in the first quarter of 2002, which included an
income tax benefit of $439,000 due to the carry back of net operating losses, a
gain from extinguishment of debt of $49,000 and depreciation and amortization
charges of $217,000, and net earnings of $164,000 or $0.02 per share in the
previous quarter, which included depreciation and amortization charges of
$209,000.
Selling, general and administrative (SG&A) expenses decreased $245,000 or 16
percent to $1.3 million from the previous quarter. Cash and equivalents
increased to $2.1 million from $1.8 million at December 31, 2002. Accounts
receivable increased to $3.4 million at March 31, 2003 from $3.1 million at
December 31, 2002 and represents 60 days sales outstanding (DSO). TACT's current
ratio at the end of the first quarter was 1.9-to-1 and its book value was $0.62
per share
Shmuel BenTov, TACT's chairman and CEO, commented, "We have carefully managed
costs in light of the prevailing economic uncertainties and remained cash flow
positive in the first quarter. TACT has generated net profits in five out of the
last seven quarters." Mr. BenTov continued, "Although the first quarter revenue
does not reflect an improvement in the business environment we are busy
discussing potential projects with new and existing clients and our pipeline is
active."
Richard Falcone, TACT's CFO added, "We increased our cash and cash equivalents
position by $280,000 or 16 percent since December 31, 2002 to $2.1 million. TACT
experienced a normal dip in gross margins in the first quarter to 26.2 percent
from the previous quarter level of 31.1 percent due to the normal increase in
payroll taxes in the first half of the year, and we expect margins to stay
within our average range of 25 to 30 percent for the second half of the year.
During the first month of our second quarter, business has been running at the
same pace as the previous quarter, and we remain optimistic that TACT will
continue to be cash flow positive."
TACT has scheduled a conference call to present its first quarter financial
results today, Wednesday, May 14, 2003 at 4:15 pm (EDT). Interested parties may
access the conference call by dialing 888-343-7144 and providing the following
reservation number: 21144252. A replay of the conference call in its entirety
will be available approximately one hour after its completion for 24 hours by
dialing (800) 633-8284 and providing the reservation number listed above.
About TACT's SMART Approach
TACT's Smart Approach is a leading edge set of end-to-end solutions and services
that include Strategy, Methodology, Architecture, Resources and Tools. The
Strategy is developed together with the client to ensure that the client's goals
and objectives are met. The Methodology is a Tried and True TACT Methodology
that is followed in order to implement the Strategy. The solutions and services
are built on a robust Architecture, Utilize highly qualified TACT Resources and
Exploits best-of-breed Tools.
About TACT
TACT (Nasdaq: TACX) is an end-to-end, IT Services and e-Services provider to
Fortune 1000 companies and other large organizations. TACT provides its clients
with modernization services, which include the e-Valuation of systems that
should be replaced and rewritten, enhanced, converted or Web Enabled.
Replacement systems are written or re-written as Web Based utilizing state of
the art leading tools such as Java and Visual Studio. More information about
TACT(R) can be found at its web site at
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of
1995: Statements made in this press release which are not historical facts,
including those that refer to TACT plans, beliefs and intentions, are
"forward-looking statements" that involve risks and uncertainties. These risks
and uncertainties could cause actual results to differ materially from the
forward-looking statements, and include, but are not limited to, TACT's ability
to scale its existing and any new businesses. For a more complete description of
the risks that apply to TACT's business, please refer to the Company's filings
with the Securities and Exchange Commission. The Company's actual results may
differ materially from the results anticipated in these forward-looking
statements as a result of certain factors set forth under Risk Factors and
elsewhere in the Company's Annual Report on Form 10-K with the Securities and
Exchange Commission on March 28, 2003.
Financial Statements Follow
THE A CONSULTING TEAM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Three Months Ended
March 31, December 31,
----------------------------------- --------------------
2003 2002 2002
----------------------------------- --------------------
(unaudited) (unaudited) (unaudited)
Revenues $ 5,109,774 $ 6,460,959 $ 6,074,555
Cost of revenues 3,772,737 4,634,312 4,186,075
----------- ----------- -----------
Gross profit 1,337,037 1,826,647 1,888,479
Operating expenses:
Selling, general & administrative 1,261,904 1,540,583 1,506,446
Depreciation & amortization 194,727 217,096 208,729
----------- ----------- -----------
1,456,631 1,757,679 1,715,176
----------- ----------- -----------
Income (loss) from operations (119,594) 68,968 173,304
Other income (expense):
Gain from extinguishment of debt - 48,715 -
Interest expense, net (10,613) (46,013) (35,250)
----------- ----------- -----------
(10,613) 2,702 (35,250)
Income (loss) before income taxes (130,207) 71,670 138,054
Provision (Benefit) for income taxes 13,457 (427,229) (25,761)
----------- ----------- -----------
Net income (loss) $ (143,664) $ 498,899 $ 163,815
=========== =========== ===========
Net income (loss) earning per share:
Basic and Diluted $ (0.02) $ 0.07 $ 0.02
=========== =========== ===========
THE A CONSULTING TEAM, INC.
STATEMENT OF FINANCIAL CONDITION
March 31, December 31,
2003 2002
-------------------------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $2,054,587 $1,774,828
Accounts receivable 3,399,575 3,076,888
Other current assets 138,835 89,672
---------- ----------
Total Current Assets 5,592,997 4,941,388
Investment at cost 368,059 368,059
Property and equipment, net 1,063,280 1,223,417
Goodwill and Intangibles, net 1,415,520 1,441,520
Other 75,151 71,133
---------- ----------
Total Assets $8,515,007 $8,045,517
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $2,967,807 $2,334,662
Other liabilities 372,368 385,756
Total shareholders' equity 5,174,832 5,325,099
---------- ----------
Total liabilities and shareholders' equity $8,515,007 $8,045,517
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