GTP Revenue Grows in Q1

Revenues were $7.98M, up 7% from 4Q02, for EBITDA of $32K; chairman and CEO Joseph Beninati steps down, prez Thomas Stanford takes over

July 29, 2003

2 Min Read

NEW YORK -- Greenwich Technology Partners (GTP®), a leading provider of network infrastructure consulting and engineering services, today reported financial results for the three-month period ending March 31, 2003.

For the first quarter of 2003, revenues were $7.98 million, representing 7% sequential growth from the previous quarter. GTP earned more than $32,000 on an EBITDA basis in the first quarter, and has now been profitable on an EBITDA basis for two consecutive quarters.

Gross profit margins for the first quarter decreased to 35% from 43% in the previous quarter, but the company’s continued focus on controlling costs resulted in SG&A costs of $2.8 million versus $3.2 million in the previous quarter. GTP’s SG&A structure continues to be at its lowest level since 1999.

GTP’s balance sheet remains strong, ending the first quarter with approximately $10.6 million of cash, $4.3 million of A/R and no short- or long-term debt. DSOs ended the quarter at 47 days, an all-time quarterly low for the company. GTP continued to expand its market base by acquiring 16 new clients in the first quarter, including firms in such diverse areas as primary health care, food & beverage, temporary staffing and software.

GTP also announced that Thomas Stanford, GTP’s President, would assume responsibility for day-to-day management of Greenwich Technology Partners. Joseph P. Beninati will be stepping down after six years as Chairman and CEO. Beninati will remain on the GTP Board, and will continue to advise the company on strategic matters.

“Tom and I have worked together closely for the last six years and he has been an integral part of GTP’s historical successes and our orderly management transition for the Company. Tom takes on responsibility for managing GTP with my full support, as well as that of the Board of Directors”, said Beninati.

GTP’s Q1, 2003 results, while noteworthy, do not reflect the challenging nature of the operating environment for IT services. In the financial services sector, a significant vertical market for GTP, IT spending remains flat or decreasing, as clients continue to reduce headcount and costs. The expectation is that challenging economic conditions will continue through Q4, 2003, with a modest recovery expected to start in early 2004.

Recognizing these conditions, GTP has put in place the 2003 / 2004 Strategy For Growth, a Business Transformation Plan that will provide the opportunity to enter new markets in a financially controlled, incremental fashion, leveraging our existing IT infrastructure services as well as our exceptional Fortune 500 client relationships.

“The goal of the Transformation Plan is to improve the predictability of our business, broaden our customer base, and take advantage of growth markets for IT services such as Health and Hospitals and Federal Government. Effective execution of plan will result in medium and long-term growth in both revenue and profitability”, according to Stanford.

Greenwich Technology Partners

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