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GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy services solutions provider, today announced financial results for the third quarter (“Q3”) and nine months ended September 30, 2013.
Jim Eberle, Chief Executive Officer of GSE, commented, “Although our operating results improved in Q3 2013 as compared to the first and second quarters of 2013, we still incurred a net loss of $1.0 million. We have experienced a significant slowdown in our operator training simulator markets in 2013 for both nuclear and fossil. On a positive note, however, the $11.1 million of orders logged in Q3 2013 were more than double the orders recorded in each of the first two quarters of 2013. We anticipate that this trend will continue in Q4 2013. As we move into 2014, our primary focus is to return the Company to profitability. We see encouraging indicators in our Asian markets and in the interest our customers are expressing in our Severe Accident, DesignEP
TM, and PSA-HD
TM solutions. We have taken steps to reduce our overhead and SG&A expenses, and will continue to review our cost structure and look for effective cost savings.”
Mr. Eberle concluded, “We ended the quarter with a very strong balance sheet, including cash and equivalents of $17.6 million, or $0.98 per diluted share, working capital of $26.5 million, and no long-term debt. Reflecting the long-term optimism we have for our business, we repurchased 177,755 shares of GSE common stock in Q3 2013 and completed our $3.0 million share repurchase plan in October 2013 with the repurchase of an additional 99,170 shares. In total, the Company repurchased 1,598,911 shares under this plan.”
Q3 2013 RESULTS
Q3 2013 revenue declined 8.7% to $11.9 million from $13.0 million in Q3 2012. Higher revenue from the $36.0 million Slovakia simulator project in Q3 2013 ($3.7 million) compared to Q3 2012 ($0.3 million) was offset by a nearly $2.0 million decline in revenue at GSE EnVision LLC, reflecting the wind down of a large contract awarded in 2012. In addition, GSE experienced a further decline in nuclear simulation revenue from clients in Japan and Germany and lower fossil fuel simulation revenue. The Slovakia simulator project is expected to be substantially completed in the first quarter of 2014.