THINK's Fourth Quarter Revenues Up 183%
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THINK New Ideas Inc. reported revenues for the fourth quarter grew to $14.7 million, a 183% increase from $5.2 million in the year-ago period and a 29% increase over the preceding quarter.
Full-year revenues grew 145% to $42.6 million, from $17.4 million a year earlier.
Pro forma net income for the fiscal 1998 fourth quarter, which ended June 30, was $770,000, or $0.09 per diluted share excluding the effect of special items totaling $29.3 million, compared to a pro forma net loss of $1.3 million, or $0.23 per diluted share excluding the effect of a restructuring charge of $1.7 million in the fourth quarter of fiscal 1997.
For the full year, THINK reported pro forma net income of $1.96 per share on a diluted basis excluding the effect of special items, compared with a pro forma net loss of $5.8 million or $1.25 per share in the prior year excluding the effect of the $1.7 million restructuring charge.
"Management believes that our ability to deliver increasingly mission-critical integrated marketing and technology solutions, from consulting through implementation, to a high-profile client list, with consistent profitability will continue to establish and maintain THINK's leadership role in our arena," he added.
Fourth-quarter and full-year earnings were affected by a number of one-time items. These included:
- A release to the founders of the company of the shares placed in escrow at the time of the company's initial public offering and subject to release only upon the attainment of certain performance criteria. These performance criteria were achieved and the shares were released to the founders, resulting in a pre-tax non-cash charge to earnings of $21.7 million in the fourth quarter of fiscal 1998.
- A one-time pre-tax charge of $920,000 related to the restructuring and closing of its traditional graphic design departments in its older offices.
- As part of a severance package granted to its former chairman and CEO, Scott Mednick, the company took a pre-tax charge of $1.69 million, primarily non-cash, related to the acceleration of options.
- A $5.2 million non-recurring charge for in-process research and development purchased in the acquisitions of two leading interactive companies, Interweb and Netcoms.