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FOR IMMEDIATE RELEASE
Thomas Group Announces Fourth Quarter and Year 2009 Results
Irving, Texas March 02, 2010 Thomas Group, Inc. (NasdaqCM: TGIS), an operations and process improvement firm, today announced a net loss of $0.7 million, or negative $0.06 per diluted share, for the fourth quarter of 2009 on revenues of $1.5 million, compared to net loss of $2.0 million, or negative $0.19 per diluted share, on revenues of $3.5 million for the fourth quarter of 2008.
For the year ended December 31, 2009, net loss was $4.3 million, or negative $0.40 per diluted share, on revenues of $9.6 million, compared to a net loss of $5.9 million, or $0.53 per diluted share, on revenues of $25.1 million for the year ended December 31, 2008.
Michael McGrath, Executive Chairman, President and CEO, stated 2009 was a very disappointing year for Thomas Group. At the end of the year, the board of directors initiated corrective actions. Effective December 22, 2009, I assumed the roles of President and CEO in addition to my role as Executive Chairman. Our strategy is now to be much more efficient, reduce costs to even lower levels than we achieved in 2009, operate more like a traditional consulting firm, and target mid-size contracts with clients more suitable to our present size, while continuing to pursue game changing opportunities on a more limited basis.
We have further reduced our unassigned consulting staff, redeployed our business development staff to engagements, eliminated several positions, realigned salaries, eliminated unnecessary general and administrative costs, and reduced professional fees. We remain a public company so there are certain related costs that are unavoidable. However, we have sought to reduce them to a minimum. As part of our review of these costs, we have elected to discontinue quarterly earnings calls for the time being, so we can focus entirely on turning the company around. Of course, we will continue to issue quarterly press releases of earnings results such as this when available and file the required reports with the SEC.
On December 11, 2009, we transferred our stock listing to the NASDAQ Capital Market from the NASDAQ Global Market. We made this transfer because we no longer satisfied the requirement of the NASDAQ Global Market to maintain a minimum market value of publically held shares of at least $5 million. We did meet the other requirements for listing on the NASDAQ Capital Markets with the exception of maintaining a minimum closing bid price of $1 per share. Under NASDAQs rules, we have until March 15, 2010 to meet this requirement. Based on recent closing bid prices of our stock, it currently appears unlikely that we will be able to satisfy this requirement to maintain a $1 per share minimum closing bid by that date. While there are alternatives available to us if we are unable to do so, they each involve additional costs. We may determine that we will forgo incurring such costs. Also, we may not be successful in any alternative we might select to increase the minimum closing bid price above this required threshold. In either of these cases, our securities may be transferred to the National Quotation Service Bureau, or Pink Sheets. This could adversely impact both the liquidity and price of our stock.
Subsequent to year end, on January 26, 2010 we completed the repurchase of the 805,450 shares authorized by our Board of Directors to be repurchased under the Rule 10b5-1 Plan begun in April 2008 at a total cost of $1,259,640, or $1.56 per share. At this time we have no plans for additional stock repurchases.
McGrath added, Despite the somewhat pessimistic news that I have discussed above, we remain committed to making Thomas Group successful once again. However, it is clearly more challenging, time consuming and costly than we had anticipated. In the meantime, we must work to conserve cash, minimize costs, increase revenue, and seek to return to breakeven as soon as possible.
The following information was filed by Thomas Group Inc (TGISQ) on Wednesday, March 3, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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