RealTime IT News

CKS Group Revenues Up 17%

CKS Group Inc. reported revenues of $46.6 million for the third quarter of fiscal 1998, an increase of 17% from revenues of $39.8 million in the same period of the prior year.

Net income for the third quarter was $3.4 million, an increase of 5% compared with pro forma net income of $3.2 million in the third quarter a year earlier. Net income per share for the quarter was $0.21 compared with pro forma net income per share of $0.20 a year earlier.

Pro forma results for fiscal 1997 exclude the effects of a non-recurring charge associated with the acquisition of SiteSpecific in June 1997.

Revenues for the nine months ended Aug. 30 were $118.6 million, an increase of 19% from revenues of $100.0 million in the same period a year ago. Net income for the first nine months of fiscal 1998 was $7.4 million or $0.45 per share, a decrease of 7% from pro forma net income of $8.0 million or $0.51 per share in the first nine months of fiscal 1997.

New media services contributed approximately 30% of total revenues, or $14.1 million in the third fiscal quarter, the company said. This compares to new media revenues of approximately 25% of total revenue or $10.0 million in the second fiscal quarter of 1998.

"During the third quarter we. . . established more large new media relationships than any quarter in the history of the company and continued to achieve the performance targets we outlined at the beginning of our fiscal year," said Mark Kvamme, CKS Group chairman and CEO. "Our pending merger with USWeb Corp. and the establishment of Reinvent Communications will bring fiscal 1998 to a close on a very high note and launch 1999 with a tremendous amount of momentum."

During the third quarter, CKS Group said it expanded relationships with existing clients such as Apple Computer, Levi Strauss, and Logitech. In addition, CKS Group initiated new relationships with clients such as Disney, Baan and Hewlett-Packard.