Kent, Wash.--(BUSINESS WIRE)--May 24, 1999--UTILX Corporation (Nasdaq:UTLX) announced that for the three months ended March 31, 1999, the Company would report revenues of $20.9 million and a net loss of $0.9 million or $.13 per share. In the same period of the prior year, the Company reported quarterly revenues of $20.4 million and a net loss of $2.3 million or $.31 per share. For the fiscal year ended March 31, 1999, the Company reported revenues of $78.9 million and a net loss of $6.7 million or $.90 per share, compared to revenues of $82.5 million and a net loss of $2.1 million or $.29 per share in the prior year. Included in the net loss for the quarter ending March 31, 1999, was a reserve for inventory obsolescence of approximately $700,000 or $.09 per share. The net loss for fiscal 1999 was mainly the result of decreased revenues during the second and third quarters from one of the Company's major customers. Revenues from this customer dropped from $25.6 million in fiscal 1998 to $22.8 million in fiscal 1999. Beginning in January 1999, work under a new three year contract resumed, generating a 22% growth in total revenue for the quarter ending March 31, 1999, compared to the quarter ending December 31, 1998. "The fourth quarter of fiscal 1999 was a crucial period for the Company in many ways," said William M. Weisfield, President and CEO. "We obtained new and expanded contracts with several major customers, negotiated a $10 million financing relationship with FINOVA Capital, sold our UK drilling operations and implemented several additional organizational changes. Our management team has begun to implement operational improvements which we expect will make for profitable growth, and we look forward to fiscal 2000 to demonstrate that UTILX is a renewed company which can bring results to the bottom line." UTILX Corporation provides critical services for the installation and rejuvenation of aged underground utility infrastructure with proprietary CableCure(R) solution, in the U.S. and Canada through a network of regional sales and service centers. The Company also provides CableCure services throughout Europe and Asia. This release contains forward-looking statements relating to the Company's existing and future products and services and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "plan," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include competitive pressures, levels of work received from key customers, weather, regulatory, other matters affecting the utility industry in general, and any matters that could cause sudden changes in customers' demand for the Company's services. The Company's contracts typically allow for cancellation on short notice. Reference is made to the Company's latest Annual Report on Form 10-K filed with the SEC for a more detailed description of such factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. FINANCIAL HIGHLIGHTS (in thousands, except per share amounts) Fourth Quarter Year Ending Ending 3/31/99 3/31/98 3/31/99 3/31/98 ------ ------ ------ ------ Revenues: North American 19,184 19,345 72,334 76,283 International Operations 1,708 1,096 6,532 6,181 ------ ------ ------ ------ Total Revenues 20,892 20,441 78,866 82,464 ------ ------ ------ ------ Gross Profit 1,394 413 3,646 7,346 Operating Expenses 2,245 2,475 9,769 8,914 ------ ------ ------ ------ Operating Income (Loss) (851) (2,062) (6,123) (1,568) ------ ------ ------ ------ Income Before Income Taxes (934) (2,285) (6,678) (2,117) Net Income (934) (2,285) (6,678) (2,118) Basic Earnings Per Share (.13) (.31) (.90) (.29) Diluted Earnings Per Share (.13) (.31) (.90) (.29) Basic Shares Outstanding 7,426 7,275 7,420 7,214 Diluted Shares Outstanding 7,426 7,275 7,420 7,214 As of: 3/31/99 3/31/98 ------ ------- Cash & Cash Equivalents $ 1,580 $ 528 Accounts Receivable 16,301 19,720 Materials, Supplies & Inventories 6,941 8,839 Other Current Assets 724 717 ------ ------- Total Current Assets 25,546 29,804 ------ ------- Property, Plant & Equipment 12,678 13,091 Other Assets 351 584 ------ ------- Total Assets $38,575 $43,479 ------ ------- Note Payable to Bank $ 5,538 $ 5,245 Other Current Liabilities 11,746 10,307 ------ ------- Total Current Liabilities 17,284 15,552 Long Term Liabilities 3,182 3,096 ------ ------- Total Liabilities 20,466 18,648 Stockholders' Equity 18,109 24,831 ------ ------- Total Liabilities & Stockholders' Equity $38,575 $43,479 ======= ======= Common Stock Issued and Outstanding 7,426 7,408  