RWD reports 28% increase in earnings for first quarter

Technology

April 22, 1999|By William Patalon III | William Patalon III,SUN STAFF

Columbia-based RWD Technologies Inc. reported a 28 percent jump yesterday in first-quarter profit on 27 percent growth in sales.

RWD -- a technology, training and consulting firm -- said it earned $3.8 million, or 24 cents a share, for the quarter that ended March 31, compared with net income of $2.97 million, or 19 cents a share, for the same three months a year ago.

The results were a record, the company said. Earnings beat the consensus estimate of analysts by 2 cents a share, according to Zacks Investment Research.

RWD shares yesterday surged $2.375, or 15 percent, to close at $18 in advance of the earnings report, which was released after the market's close.

"Our strong financial performance this quarter is a direct result of our focus on providing large companies with technology solutions to business problems," Robert W. Deutsch, the company's chairman and chief executive officer, said in a statement.

Revenue totaled $33.2 million for the first quarter, compared with $26.2 million last year.

The company said its broad offerings of technology products, as well as its training and consulting services and its relationships with Fortune 500 customers, drove the growth.

The four analysts who follow the company have ratings on the company that range from "outperform" to "strong buy."

Pub Date: 4/22/99

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