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COVANSYS UPDATES FIRST QUARTER 2004 FINANCIAL DATA
INCLUDED IN ITS AUGUST 5, 2004 PRESS RELEASE
Company Also Announces Filing of First
Quarter 2004 Form 10-Q
See First Quarter Financial Tables here or
Download Excel Sheet
See Second Quarter Financial Tables here or
Download Excel Sheet
FARMINGTON HILLS, Mich., August 6, 2004 – Covansys
Corporation (Nasdaq: CVNSE), a leading global provider of strategic
outsourcing and integration services, today announced a revision
to the first quarter and first half 2004 financial data which it
disclosed yesterday. The revision is reflected in the Company’s
first quarter 2004 Form 10-Q, which was filed with the Securities
and Exchange Commission today. This revision does not affect the
Company’s previously announced cash flow, net income or earnings
per share.
Covansys adjusted its first quarter and half year 2004 financial
information to reclassify the
$5.5 million adjustment of billed and unbilled receivables related
to two troubled fixed price projects from cost of revenue and selling,
general and administrative (“SG&A”) to revenue.
The adjustment reduced first quarter revenues from $90.4 million
to $84.9 million, cost of revenue from $75.2 million to $70.0 million
and SG&A from $19.7 million to $19.4 million. The Company also
adjusted its half year results, with revenue decreasing from
$184.5 million to $179.0 million, cost of revenue from $144.0 million
to $138.8 million and SG&A from $39.4 million to $39.1 million
These revisions are reflected in the attached financial statement schedules.
About Covansys
Covansys Corporation, (NASDAQ: CVNS), is a global consulting and
technology services company specializing in industry-specific solutions,
strategic outsourcing and integration services through a unique
onsite, off-site, offshore delivery model that helps clients achieve
rapid deployment, world-class quality and reduced costs. Founded
in 1985, Covansys has successfully delivered an array of innovative
and cost-effective business and technical solutions to leaders
in the private and public sectors. With one of the largest offshore
capabilities of any technology services provider based in the United
States, Covansys has achieved the SEI’s CMM Level 5 quality
ratings at two of its offshore development centers in India.
Safe Harbor Statement
With the exception of statements regarding historical matters
and statements concerning our current status, certain matters discussed
herein are forward-looking statements that involve substantial
risks and uncertainties. Such forward-looking statements may be
identified by the words "anticipate," "believe," "estimate," "expect" or "intend" and
similar expressions. Our actual results, performance or achievements
could differ materially from these forward-looking statements.
Factors that could cause or contribute to such material differences
include general economic conditions and conditions in the IT industry
such as the demand for IT services, public sector government budgetary
constraints, potential cost overruns on fixed-price projects, effective
application of the percentage of completion method of accounting
for fixed priced contracts, risks related to merger, acquisition
and strategic investment strategy, variability of operating results,
government regulation of immigration, exposure to regulatory, political
and economic conditions in India and Asia, competition in the IT
services industry, the short-term nature and termination provisions
of contracts, economic conditions unique to clients in specific
industries and limited protection of intellectual property rights.
These and other factors are described in the Company’s filings
with the U.S. Securities and Exchange Commission.
AT THE COMPANY:
David Roady
(248) 848-2221
droady@covansys.com
AT JOELE FRANK, WILKINSON BRIMMER KATCHER:
Eden Abrahams / Andrew Siegel
(212) 355-4449
ea@joelefrank.com / abs@joelefrank.com
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