Paradigm Geophysical

(Nasdaq:PGEO) again met analyst forecasts, posting a profit for the seventh time running for the second quarter of 2001.

Paradigm develops software to analyze seismic data in the oil and gas exploration industry.

Second-quarter earnings came to $934,000, 280% more than in the parallel quarter of 2000, for which it posted $246,000. Earnings per share came to six cents, beating forecasts by one cent.

Cash flow per share came to 21 cents, 25% more than in the same quarter of 2000.

Revenues increased to $18.5 million, which is 31% above the second quarter of last year, and 6% more than in the first quarter of this year.

TheStreet Recommends

The growth is due to increased revenues from software sales, which jumped to $13.4 million, which is 36% more compared with the second quarter of 2000. Revenues from services increased to $5.1 million, which is 21% above the second quarter of 2000.

The company says that in the course of the second quarter it made an investment designed to diversify its services. The firm expects this investment to positively affect its services-based revenues by this year's Q3.

Earnings before interest, taxes, depreciation and amortization increased to $1.34 million, 240% more than in the second quarter of 2000, when EBITDA came to $394,000.

The company had cash reserves of $7.4 million at the end of this year's Q2, and its equity capital stands at $48.5 million, or 53% of the balance.

Paradigm Chairman and CEO Eldad Weiss said that the firm's continued indicate that it should meet its earnings forecast for 2001.

Paradigm Geophysical trades in New York and in Tel Aviv. The stock traded in Tel Aviv on Tuesday at NIS 25.7, reflecting a market cap of $90 million.