The Titan Corporation Reports Record Revenues of 303.4 Million for 1998; 1998 Net Earnings of .35 Per Share*
SAN DIEGO --- The Titan Corporation reported today record revenues of 303.4 million for 1998. This performance was principally driven by strong internal growth in its commercial software, medical sterilization, and government satellite communications businesses. Titan's government information technology business also achieved significant growth, primarily resulting from the revenue contribution derived from five strategic businesses acquired during the year. Strong revenue growth was generated across several of Titan's businesses: Titan's medical sterilization business generated 67% revenue growth, Titan's commercial software business generated 24% revenue growth, and Titan's government satellite communications business generated 17% revenue growth in fiscal 1998. Fourth quarter 1998 revenues were 84.8 million, an increase of 19.5% from 70.9 million in the fourth quarter of 1997. Internal revenue growth was experienced in substantially all operating businesses during the fourth quarter of 1998 compared to the same period in 1997. Net earnings* for 1998 were 13.5 million or .35 per share, compared with 5.9 million or .15 per share in the same period in 1997. These net earnings were driven by strong operating performance across substantially all business units of the Company in 1998. Net earnings* for fourth quarter 1998 were 4.8 million or .13 per share, compared with 0.9 million or .02 per share for the same period in 1997. Titan's Information Technologies segment, representing its core defense information business, reported 1998 revenues of 190.5 million and operating profit of 22.1 million, reflecting increases of 15% and 83%, respectively, over reported 1997 results. The growth in this segment was due primarily to the aforementioned acquisitions, the impact of certain asset write downs in 1997 related to the DBA Systems acquisition, and continued internal growth and operating performance. Titan's President and Chief Executive Officer, Gene W. Ray stated, "1998 was clearly the most successful year in the history of The Titan Corporation. Not only did we enjoy significant internal growth across most of our businesses, we believe that the company is well positioned to continue these successes in 1999 and beyond.'' Dr. Ray added, "In a year of many accomplishments, the one of which I am most proud is the operational performance of our businesses. 1998 operating profits in each segment were by far the highest in the history of the corporation with strong performance across virtually every business unit in the company.'' Dr. Ray went on to say, "Titan's total backlog today stands at over 750 million (including priced options) and with the recent move by the Clinton Administration for an additional 110 billion in defense budget funding over the next six years, our core government information technology business is well positioned for future growth.'' The Titan Corporation, headquartered in San Diego, California, is a leading provider of state-of-the-art information technology solutions, satellite communications systems and services, and medical product sterilization and food pasteurization systems and services. In addition to maximizing internal growth, Titan employs a strategy of acquiring businesses that can be readily integrated into its existing core businesses in order to increase profitability and grow market share. The firm has annualized revenues in excess of 340 million and employs over 2,500 employees. Titan Corporation is headquartered in San Diego, CA.
* Titan has defined net earnings as income from continuing operations, excluding special acquisition and other related charges, less interest and related tax provisions. Including special acquisition and other related charges, discontinued operations and the cumulative effect of a change in accounting principle, Titan's net losses for the quarter and year ended December 31, 1998 were 0.5 million (.02 per share - diluted) and 19.7 million (.57 per share - diluted), respectively.
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The Titan Corporation Reports Record Revenues of 303.4 Million for 1998; 1998 Net Earnings of .35 Per Share*
