GSE Systems Reports 1st Quarter 2023 Financial Results.

COLUMBIA, Md: GSE Systems, Inc. ("GSE Solutions", "GSE", or "the Company") (Nasdaq: GVP), a leader in advanced engineering and workforce solutions that support nuclear power and the decarbonization initiatives of the power industry, today announced its financial results for the first quarter ("Q1") ended March 31, 2023.

Q1 2023 and Recent Highlights

New orders in Q1 2023 were $19.1 million, up 72% from $11.1 million in Q1 2022.

Engineering orders in Q1 2023 was $14.7 million, up 130% from $6.4 million in Q1 2022.

Engineering revenue in Q1 2023 increased 9% from Q1 of 2022.

Software and support sales increased in Q1 of 2023 by 168% to $0.9 million when compared to $0.3 million in Q1 of 2022.

Backlog at March 31, 2023, was $40.9 million, including $31.4 million of Engineering backlog, and $9.5 million of Workforce Solutions backlog.

Ended Q1 2023 with cash, cash equivalents and restricted cash of $2.8 million, including restricted cash of $1.6 million.

Management Commentary

"The company received solid orders bookings in Q1, with backlog levels closing above $40M. We are particularly pleased with our engineering bookings and software revenue growth," commented Kyle J. Loudermilk, GSE's President and Chief Executive Officer. "There continues to be positive momentum building for our industry, which we are eager to see convert to order flow and revenue which should follow orders from a timing perspective. Longer term, the macro trends towards grid stability, energy security and decarbonization are in our favor, providing a solid foundation to be optimistic about the future."

Emmett Pepe, CFO of GSE Systems, added, "The $19.1m in orders is our highest quarter in 3 years and provides us with a good start to 2023. We will look to leverage these orders and our strong backlog to generate future revenue while we continue to pursue cost containment measures and expect to start seeing the benefits of these initiatives in Q2 2023."

Q1 2023 FINANCIAL RESULTS

Orders in Q1 2023 were $19.1 million, an increase of 72% compared to $11.1 million in Q1 2022. Orders for Engineering increased 130% to $14.7 million in Q1 2023 compared to $6.4 million in Q1 2022. For Workforce Solutions, orders were $4.4 million in Q1 2023, compared to $4.7 million in Q1 2022.

Revenue during Q1 2023 was $10.9 million, a decrease of 11.4% compared to $12.3 million in Q1 2022 and an increase of 1% compared to $10.8 million in Q4 2022. The decrease of revenue was primarily due to fewer...