GSE Systems, Inc. (NYSE: GVP) said its second quarter 2014 revenue declined 25.0 percent to USD8.3m from USD11.0m in Q2 2013.
The company said the decrease in revenue was mainly caused by a USD2.4m decline in revenue from the USD36.6m Slovakia simulator project, which was completed and entered warranty in April 2014. In addition, revenue generated from fossil fuel simulation projects decreased by USD1.0m in the second quarter of 2014 as compared to the second quarter of 2013, the result of the completion of several large projects in 2013 and a continued sluggishness in capital spending by fossil fuel utilities.
Gross profit in the second quarter of 2014 was USD2.6m, or 32.0 percent of revenue, as compared to USD0.6m, or 5.8 percent of revenue, in the second quarter of 2013. In the second quarter of 2013 the company recorded a USD2.2m non-cash write down of capitalized software development costs. Excluding this non-cash write down, the second quarter of 2013 gross profit would have been USD2.8m, or 25.5 percent of revenue.
Net loss for the second quarter of 2014 was USD2.0m, or USD0.11 per basic and diluted share, compared to a net loss of USD8.2m, or USD0.45 per basic and diluted share, in the second quarter of 2013. Excluding the USD6.6m in one-time, non-cash charges, the net loss for the second quarter of 2013 would have been USD1.6m, or USD0.09 per diluted share.
GSE Systems, Inc. is a world leader in real-time high-fidelity simulation, providing a wide range of simulation, training and engineering solutions to the energy and process industries. GSE Systems is headquartered in Sykesville (Baltimore), Maryland, with offices in St. Marys, Georgia; Cary, North Carolina; Chennai, India; Nyköping, Sweden; Stockton-on-Tees, UK; Glasgow, UK; and Beijing, China. Information is available at www.gses.com.