Analytical Surveys Reports Second Quarter Results
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Analytical Surveys Reports Second Quarter Results

SAN ANTONIO, May 15 /PRNewswire-FirstCall/ -- Analytical Surveys, Inc. (ASI) (NASDAQ: ANLT), a leading provider of utility-industry data collection, creation and management services for the geographic information systems (GIS) markets, today announced financial results for its second fiscal quarter and six months ended March 31, 2006.

Second quarter revenue totaled $1.4 million versus $1.5 million in the comparable 2005 quarter. The Company reduced its net loss from operations to $2,000 versus a net loss from operations of $615,000 in the comparable quarter a year ago. Net loss available to common shareholders was $19,000, or $0.01 per diluted share, versus a net loss available to common shareholders of $679,000, or $0.24 per diluted share, in the fiscal 2005 quarter.

Revenue in the six-month period totaled $2.7 million versus $3.6 million in the comparable period in fiscal 2005. Net loss from operations was reduced to $35,000 as compared with $1.1 million in the comparable period last year. Net loss available to common shareholders was $62,000, or $0.02 per diluted share, versus a net loss of $1.2 million, or $0.48 per diluted share, at the six-month mark a year ago.

The reduced net loss for the second quarter and six-month period was principally due to lower salaries, wages, benefits and subcontractor costs, which were proportionately lower than the decline in revenue. Management attributed the decline in quarter revenue to a lower number of active contracts versus last year's first quarter, and a lower level of new contract signings in recent fiscal years. The long-term decline in contract activity has been the result of lower demand for data conversion services within the GIS industry. The Company ended the second quarter with an order backlog of $1.4 million versus $4.0 million at the end of fiscal 2005.

Lori Jones, CEO, said, "Our focus within the GIS industry is to provide service and software solutions that produce higher margins than the traditional large-volume data conversion projects. We also continue to focus on our expansion into the oil and gas sector, with the goal of generating revenue and cash flow that provide returns to our shareholders well above those we can generate in our GIS business."

Analytical Surveys Inc. (ASI) provides technology-enabled solutions and expert services for geospatial data management, including data capture and conversion, planning, implementation, distribution strategies and maintenance services. Through its affiliates, ASI has played a leading role in the geospatial industry for more than 40 years. The Company is dedicated to providing utilities and government with responsive, proactive solutions that maximize the value of information and technology assets. The Company is in the process of expanding its business into the energy sector. ASI is headquartered in San Antonio, Texas and maintains operations in Waukesha, Wisconsin. For more information, visit

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future sales, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1. Business -- "risk factors" and elsewhere in the Company's Annual Report on Form 10-KSB.

                           ANALYTICAL SURVEYS, INC.
                         Consolidated Balance Sheets
                                (In thousands)

                        Assets                     March 31,    September 30,
                                                     2006           2005
    Current assets:                               (Unaudited)
      Cash and cash equivalents                       $553          $622
      Accounts receivable, net of allowance
       for doubtful accounts of $50 at
       March 31, 2006 and September 30, 2005         1,512         1,529
      Revenue earned in excess of billings           1,232         1,612
      Prepaid expenses and other                        72            81
        Total current assets                         3,369         3,844

    Oil and natural gas properties and equipment       603            --

    Equipment and leasehold improvements, at cost:
      Equipment                                      3,915         3,979
      Furniture and fixtures                           363           363
      Leasehold improvements                            75            75
                                                     4,353         4,417
      Less accumulated depreciation and
       amortization                                 (4,217)       (4,249)
        Net equipment and leasehold improvements       136           168
        Total assets                                $4,108        $4,012

            Liabilities and Stockholders' Equity
    Current liabilities:
      Current portion of long-term debt and
       capital lease obligations                       $17           $17
      Billings in excess of revenue earned             253           425
      Accounts payable                                 379           289
      Accrued liabilities                              213           688
      Accrued payroll and related benefits             433           687
      Total current liabilities                      1,295         2,106
    Long-term debt:
      Capital lease obligations, less current portion   25            30
      Redeemable preferred stock, no par value;
       authorized 2,500 shares; 166 shares issued
       and outstanding at September 30, 2005
       (liquidation value $266)                         --           247
        Total long-term liabilities                     25           277
        Total liabilities                            1,320         2,383

    Commitments and contingencies

    Stockholders' equity:
      Convertible preferred stock, no par value:
       authorized 2,500 shares; 760 issued
       and outstanding at March 31, 2006               708            --
      Common stock, no par value; authorized
       100,000 shares; 3,401 and 2,869 shares
       issued and outstanding at March 31, 2006
       and September 30, 2005, respectively         35,825        35,312
      Accumulated deficit                          (33,745)      (33,683)
        Total stockholders' equity                   2,788         1,629
        Total liabilities and
         stockholders' equity                       $4,108        $4,012

                           ANALYTICAL SURVEYS, INC.
                    Consolidated Statements of Operations
                   (In thousands, except per share amounts)

                             Three Months Ended         Six Months Ended
                                  March 31                  March 31
                             2006         2005         2006          2005

    Revenues                $1,384       $1,544       $2,743      $ 3,572

    Costs and expenses:
      Salaries, wages
       and benefits            876        1,293        1,657        2,849
      Subcontractor costs      275          434          414          811
      General and
       administrative          218          384          670          819
       and amortization         17           48           37          103
      Severance and
       related costs            --           --           --           67
      Total operating costs  1,386        2,159        2,778        4,649
        Loss from operations    (2)        (615)         (35)      (1,077)
    Other income (expense):
      Interest expense, net    (41)         (11)         (54)         (52)
      Gain on
       extinguishment of debt   61           --           61           --
      Other income
       (expense), net           --          (53)           3          (41)
      Total other income
       (expense)                20          (64)          10          (93)
        Earnings (loss)
         before income taxes    18         (679)         (25)      (1,170)
    Provision for
     income taxes               --           --           --           --
        Net earnings (loss)     18         (679)         (25)      (1,170)
    Deemed dividend
     associated with
     beneficial conversion
     feature of
     preferred stock           (30)          --          (30)          --
    Dividends on
     preferred stock            (7)          --           (7)          --
        Net loss available
         to common
         stockholders         $(19)       $(679)        $(62)     $(1,170)

    Basic net loss per
     common share
     available to common
     stockholders           $(0.01)      $(0.24)      $(0.02)      $(0.48)

    Diluted net loss
     per common share
     available to
     common stockholders    $(0.01)      $(0.24)      $(0.02)      $(0.48)

    Weighted average
     common shares:
      Basic                  3,160        2,869        3,013        2,418
      Diluted                3,160        2,869        3,013        2,418

CONTACT: Lori Jones, Chief Executive Officer of Analytical Surveys, Inc.,
+1-210-657-1500; or Geoff High of Pfeiffer High Public Relations, Inc.,
+1-303-393-7044, Email Contact, for Analytical Surveys, Inc.

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