Exhibit 99.1
Company Contact: Investor Contact:
TACT(R) Sal Quadrino, CFO Joseph M. Zappulla
- --------------------------- TACT Wall Street Consultants Corp.
The A Consulting Team, Inc. 732-499-8228 212-681-4100
squadrino@tact.com jzappulla@wallstreetir.com
THE A CONSULTING TEAM REPORTS SECOND QUARTER FINANCIAL RESULTS
COMPANY SCHEDULES CONFERENCE CALL ON AUGUST 11, 2006 AT 10:30 A.M. TO PRESENT
FINANCIAL RESULTS
NEW YORK, NEW YORK, August 9, 2006 - The A Consulting Team, Inc. ("TACT")
(Nasdaq Capital Market: TACX), an IT and Business Process Outsourcing (BPO)
services provider to Fortune 1000 Companies, today reported financial results
for its second quarter ended June 30, 2006. The Company reported revenue of $6.7
million, up slightly over the prior year second quarter. The Company generated
net earnings in the second quarter of $682,000 or $0.28 per diluted share
compared to a net loss of $(546,000) or $(0.24) per basic and diluted share in
the second quarter of the previous year. The current year second quarter results
included $881,000 of net proceeds received by the Company in connection with the
release of claims relating to the terminated transaction with Vanguard
Info-Solution Corporation, while the comparable 2005 period included $617,000 of
costs associated with the terminated transaction.
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(In 000s except per share amounts) Three Months Ended Six Months Ended
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6-30-06(1) 6-30-05(2) 6-30-06(1) 6-30-05(2)
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Revenue $ 6,738 $ 6,704 $ 12,648 $ 12,819
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Gross Profit $ 1,813 $ 1,783 $ 3,425 $ 3,658
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Income/(Loss) from Operations $ 683 $ (543) $ 543 $ (800)
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Net Income/(Loss) $ 682 $ (546) $ 543 $ (805)
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EPS per share - basic $ 0.29 $ (0.24) $ 0.23 $ (0.37)
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EPS per share - diluted $ 0.28 $ (0.24) $ 0.23 $ (0.37)
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(1) Includes net proceeds received by the Company in connection with the release
of claims relating to the terminated transaction with Vanguard Info-Solution
Corporation of $881,000 in the three and six month periods ended June 30,
2006 respectively.
(2) Includes costs associated with the terminated transaction in the three and
six month periods ended June 30, 2005 of $617,000 and $1,162,000,
respectively.
The Company's gross profit margin for the second quarter 2006 was 26.9 percent,
slightly higher than the second quarter 2005 of 26.6 percent. Selling, general
and administrative (SG&A) costs were $1.1 million, net of the $881,000 proceeds
received by the Company in connection with the release of claims relating to the
terminated Vanguard transaction, compared to $2.3 million in the same period of
the previous year, which included approximately $617,000 of costs associated
with the terminated transaction. Excluding these transaction related items, SG&A
increased by $321,000 due to increased compensation costs primarily associated
with additional sales and marketing personnel and increased legal and other
professional fees.
Shmuel BenTov, TACT's president and CEO, commented, "TACT continues to focus on
increasing its revenues and replacing a number of projects that were completed
towards the end of 2005. We have invested in marketing and sales professionals
to achieve this goal."
Sal Quadrino, TACT's chief financial officer, added, "TACT closed the 2006
second quarter with $2.3 million or $0.96 per share in cash and cash
equivalents. The company's financial position remains strong with a current
ratio of 3.0 and no long-term debt."
TACT has scheduled a conference call to present its second quarter financial
results for August 11, 2006, at 10:30 a.m. (EDT). Interested parties may access
the conference call by dialing 800-670-3543 and providing the following
reservation number: 21301321. The call will be available via the Internet
through CCBN at www.fulldisclosure.com. A replay of the conference call in its
entirety will also be available through CCBN.
About TACT
TACT (Nasdaq Capital Market: TACX) has built a reputation for cutting-edge IT
Solutions that is exemplified by its impressive roster of Fortune 1000
customers. TACT focuses on a business-oriented, value-added approach to its
end-to-end IT Services and Business Process Outsourcing solutions. For over 20
years, TACT has provided complete project life-cycle services in the areas of
Business Intelligence, Custom Application Development, Strategic Sourcing,
Support and Maintenance, Data Supply Chain, Collaboration, Quality Assurance,
Project Portfolio Management, and other specific vertical solutions. TACT has
offices in New York City, Clark, New Jersey, and Bangalore, India. More
information about TACT(R) can be found at its web site at http://www.tact.com
"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 29, 2006.
* * * * * Financial Statements Follow * * * * *
THE A CONSULTING TEAM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
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2006 2005 2006 2005
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(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES $ 12,648,493 $12,819,166 $ 6,737,842 $ 6,704,056
Cost of revenues 9,223,831 9,161,623 4,925,055 4,921,344
----------------- -------------- --------------- ---------------
Gross profit
3,424,662 3,657,543 1,812,787 1,782,712
OPERATING EXPENSES:
Selling, general & administrative 2,804,240 4,336,285 1,088,695 2,264,873
Depreciation & amortization 77,482 121,463 40,798 61,274
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2,881,722 4,457,748 1,129,493 2,326,147
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Income/(Loss) from operations
542,940 (800,205) 683,294 (543,435)
OTHER INCOME(EXPENSE):
Interest income-net 17,060 5,635 11,276 2,188
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17,060 5,635 11,276 2,188
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INCOME/(LOSS) BEFORE INCOME TAXES
560,000 (794,570) 694,570 (541,247)
Provision for income taxes 17,500 10,296 12,800 4,375
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NET INCOME/(LOSS)
542,500 (804,866) 681,770 (545,622)
Other comprehensive loss - foreign
currency adjustment (4,486) -- (2,321) --
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Comprehensive income/(loss) $ 538,014 $ (804,866) $ 679,449 $ (545,622)
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Net income/(loss) per share
Basic $ 0.23 $ (0.37) $ 0.29 $ (0.24)
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Diluted $ 0.23 $ (0.37) $ 0.28 $ (0.24)
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THE A CONSULTING TEAM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2006 December 31, 2005
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(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,293,085 $ 2,156,867
Accounts receivable 4,972,914 3,918,371
Other current assets 278,462 594,976
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Total current assets
7,544,461 6,670,214
Investment, net 87,059 87,059
Property and equipment, net 462,729 480,845
Goodwill 1,140,964 1,140,964
Deposits and other assets 108,561 114,363
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Total assets $ 9,343,774 $ 8,493,445
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 2,518,869 $ 2,288,648
Total shareholders' equity 6,824,905 6,204,797
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Total liabilities and shareholders' equity $ 9,343,774 $ 8,493,445
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