Mobile Computing Corporation Reports 2001 First Quarter Results
Toronto Stock Exchange Symbol: MBL
TORONTO, May 2 /CNW/ - Mobile Computing Corporation (MCC) (TSE:MBL), a
supplier of wireless information solutions for mobile workers, today reported
financial results for the first quarter of 2001.
Review of Operations
In the first quarter ended March 31, 2001 the Company reached some
significant milestones in the ongoing implementation of its business plan.
Revenues for the first quarter of 2001 grew to $4,056,000, up 24% from the
previous year's first quarter revenue of $3,271,000. Quarter over quarter,
revenues rose by 43% from $2.8 million in the fourth quarter of 2000. Further
details follow in the review of financial results.
"We are very pleased with these results, which are ahead of our business
plan year-to-date," said David Cunningham, President & CEO of Mobile Computing
Corporation. "We are particularly encouraged with the combination of the
already in-house order backlog together with a large prospect list. The
Distribution Systems division in particular has had an excellent quarter."
During the quarter, MCC continued to move forward with field trials of
Perfect Delivery with some key customers. As well, the Company continues to
build relationships with potential alliance partners for MCC's complete m-LINX
mobile solution package. The MJ Systems division experienced strong sales
successes with both legacy offerings and new sales of the recently released
Perfect Delivery solution.
"I am very encouraged with the increasing number of prospects for new
generation of products, m-LINX and Perfect Delivery", Mr. Cunningham
continued. "We are also seeing a substantial improvement in the fuel market,
driven by stronger financial results in the industry and the need to update
technology. We expect this improvement to be reflected in the financial
results for the next two quarters."
The Company is continuing its search for additional funding and hired
PricewaterhouseCoopers Securities last fall to assist it in identifying
strategic investors. The Company's Board of Directors has expanded
PricewaterhouseCoopers' mandate to include assisting in evaluating all
potential strategic alternatives that may be available to the Company. While
the Company remains optimistic about raising additional funding, the Company
has only sufficient cash on hand to meet its working capital requirements
until early in the third quarter. We are exploring all avenues to obtain the
required funding. There can be no assurance that such funding will be
available or if available, on standard commercial terms, or that such funding
will not result in substantial dilution to shareholders.
David Cunningham concluded: "We continue to make progress with our
business plan and are pleased about the level of interest and excitement in
our new offerings. We look forward to continuing to take these offerings to
market".
Review of Financial Results
Consolidated revenues for the first quarter of 2001 were $ 4,056,000, an
increase of 24% from $3,271,000 for the corresponding period in the previous
year.
Gross margins decreased to 31% of revenues in the first quarter of 2001
compared to 46% in the first quarter of 2000. This is a result of a higher
proportion of revenue from bundled third party hardware in 2001 and is
consistent with the Company's business plan. The Company reported a net loss
of $1,822,000, or ($0.04) per share, for the first quarter, compared to a net
loss of $2,017,000, or ($0.07) per share, reported for the same period in
2000.
The Company had a net cash position of $3,160,000 and working capital of
$3,671,000 at March 31, 2001. If the Company is not successful in raising
additional funding, it believes that the available cash on hand will meet its
working capital requirements early into the third quarter of this year based
on current estimates.
MCC is organized into two distinct operating divisions. Segmented
financial results for the three months ended March 31, 2001 for the divisions
were as follows:
Mobile Computing Systems Division (Mobile)
The Mobile division posted first quarter 2001 sales of $1,223,000, down
25% from sales of $1,630,000 in the first quarter of 2000. All revenues in the
quarter came from the division's legacy products.
The division's total operating expenses were lower for the first quarter
of 2001 at $1,407,000 versus $1,648,000 for the same period in 2000. Expense
decreases were associated with the closure of the Dallas office at the end of
fiscal year 2000 and a reduction in marketing expenditures and staffing levels
compared to the first quarter of 2000. The net loss for the first quarter of
2001 was $1,308,000 compared to a net loss of $1,172,000 for the same period
in 2000.
Consistent with its business plan, the Company does not expect its new m-
LINX product suite to start generating significant revenue until the third
quarter of fiscal 2001.
Distribution Systems Division (MJ)
The MJ division reported revenues for the 2001 first quarter of
$2,833,000, an increase of 73% over revenues of $1,641,000 for the same period
in 2000. MJ had a net loss of $514,000 for the reporting period, compared to a
net loss of $845,000 for the same quarter in 2000. Operating expenses have
decreased since 2000 by $132,000, primarily due to a delay in sales spending.
About Mobile Computing Corporation
Mobile Computing Corporation (www.mobilecom.com) is a supplier of
wireless information solutions for mobile workers. These systems enable
companies to communicate with, monitor and manage the activities of their
vehicles and field personnel. MCC solutions enable improved management of the
movement and delivery of goods and services, improving productivity and
profitability. MCC specializes in delivering fully integrated solutions that
link mobile workers with corporate information systems utilizing wireless data
communications services. Mobile Computing Corporation trades on the Toronto
Stock Exchange under the symbol "MBL" and has approximately 44.8 million
shares outstanding.
This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially
from the statements made. When used in this document, the words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" and similar expressions are intended to identify
forward-looking statements. Such statements reflect Mobile Computing
Corporation's current views with respect to future events and are subject
to such risks and uncertainties. Many factors could cause our actual
results to differ materially from the statements made including those
factors detailed from time to time in filings made by Mobile Computing
Corporation with Canadian securities regulatory authorities. Should one
or more of these risks or uncertainties materialize, or should
assumptions underlying the forward looking statements prove incorrect,
actual results may vary materially from those described herein as
intended, planned, anticipated or expected. Mobile Computing Corporation
does not intend and does not assume any obligation to update these
forward-looking statements.
<<
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited - thousands of dollars) For the three months
ended March 31
2001 2000
----------------------
SALES $ 4,056 $ 3,271
Cost of goods sold 2,812 1,769
----------------------
Gross margin 1,244 1,502
EXPENSES
Research and development 735 704
Selling and marketing 818 1,096
Administration 1,232 1,225
Foreign exchange loss (gain) (159) (29)
----------------------
2,626 2,996
----------------------
LOSS BEFORE THE UNDERNOTED (1,382) (1,494)
Depreciation and amortization 368 364
Interest expense 72 159
----------------------
LOSS FOR THE PERIOD (1,822) (2,017)
Deficit, beginning of year (28,534) (18,696)
----------------------
Deficit, end of year $ (30,356) $ (20,713)
----------------------
----------------------
BASIC AND DILUTED LOSS PER SHARE $ (0.04) $ (0.07)
----------------------
----------------------
CONSOLIDATED BALANCE SHEET
(unaudited - thousands of dollars) As at
March 31 December 31
2001 2000
----------------------
ASSETS
Current assets:
Cash and cash equivalents $ 3,160 $ 1,942
Accounts receivable 2,884 1,569
Inventories 1,789 1,821
Prepaid expenses 609 349
----------------------
8,442 5,681
Capital assets (net of accumulated depreciation) 1,781 1,840
Intangible assets (net of accumulated amortization) 1,275 1,456
Other assets 261 212
----------------------
$ 11,759 $ 9,189
----------------------
----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable and accrued liabilities $ 2,943 $ 2,320
Deferred revenue 1,577 753
Current portion of capital lease obligation 251 277
Short term loans - -
----------------------
4,771 3,350
Long term liabilities:
Capital lease obligation 109 141
Debenture (note 3) 2,709 -
----------------------
7,589 3,491
Shareholders' equity (deficiency):
Capital stock 33,743 33,739
Contributed surplus 65 65
Share options 320 -
Cumulative translation adjustment 398 428
Deficit (30,356) (28,534)
----------------------
4,170 5,698
----------------------
$ 11,759 $ 9,189
----------------------
----------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited - thousands of dollars) For the three months
ended March 31
2001 2000
----------------------
CASH PROVIDED BY (USED IN):
Operations:
Loss for the period $ (1,822) $ (2,017)
Items not involving cash:
Depreciation 120 127
Amortization of intangible assets 247 236
Amortization of other assets 32 8
Change in non-cash working capital
Accounts receivable (1,402) (785)
Inventory 51 (204)
Prepaid expenses (248) (139)
Other assets 37 (13)
Accounts payable and accrued liabilities 583 (43)
Deferred revenue 808 813
----------------------
(1,594) (2,017)
Financing:
Repayment of capital lease obligation (57) (51)
Issue of debenture 2,915 -
Issue of common shares on exercise of employee
share options 4 79
Issue (cost) of special warrants - 9,189
----------------------
2,862 9,217
Investments:
Capital asset additions (50) (168)
----------------------
Increase (decrease) in cash and cash
equivalents 1,218 7,032
Cash and cash equivalents, beginning of period 1,942 990
----------------------
Cash and cash equivalents, end of period $ 3,160 $ 8,022
----------------------
----------------------
>>
%SEDAR: 00003758E
-30-
For further information: please contact: Cory Pala, Investor Relations,
Tel: (416) 657-2400, Fax: (416) 657-2300, E-mail: cpala@e-vestorcom.com;
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw. |
