Teklogix reports second quarter fiscal year 2000 results
MISSISSAUGA, ON, Oct. 26 /CNW/ - Teklogix International Inc., a leading
developer and marketer of wireless communication systems for supply-chain
management today announced record results for the second quarter ended
September 30, 1999. Net income of $5.3 million or 37 cents per share increased
35% from $3.9 million or 28 cents per share earned in the second quarter last
year.
Revenues were $52.2 million for the second quarter of fiscal year 2000,
up 23.4% from revenues of $42.3 million for same period in fiscal 1999.
For the first six months of fiscal 2000, Teklogix recorded revenues of
$101.7 million and net earnings of $9.4 million, or 67 cents per share. This
compares with revenues of $77.2 million and net earnings of $6.2 million, or
45 cents per share, for the same period last year, increases of 31.7% and
51.3% respectively.
Gross profit margin in the second quarter improved to 59.0% compared with
56.9% in the same quarter last year, and expenses remained level as a
percentage of revenues at 41.7% compared to 41.6% in 1999.
``We're pleased with our second quarter performance and the continued
growth of our business,' said Ian McElroy, President and CEO. ``Teklogix'
outlook is very positive and we expect our current momentum to continue to the
end of the fiscal year.'
The company generated $6.9 million from operations, before $5.4 million
in additional working capital investment, for a net improvement of $1.5
million in cash from operating activities for the quarter. As a result, cash
used in operating activities for the six month period declined from $7.8
million at June 30, 1999 to $6.3 million at September 30. The company had cash
and short-term deposits of $5.2 million at September 30, 1999 and had
operating line borrowings of $7.2 million. Shareholders' equity improved to
$76.2 million at September 30, 1999.
Teklogix is a global leader in wireless data communications and enabling
software for supply chain and inventory management. The company designs,
manufactures, markets, and supports large-scale systems and products for
corporations with a mobile workforce and a need for real-time interactive data
communications. The company's systems are typically used by large-scale
organizations in the manufacturing, retail, transportation and service
industries. An estimated 6,000 Teklogix systems are installed in more than 50
countries worldwide. The company has 38 sales and support offices and 26
independent distributors throughout North America, Europe, Asia, Australia,
and South & Latin America.
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30
(unaudited)
(expressed in thousands of dollars) 1999 1998
--------- ---------
ASSETS
Current
Cash and short term deposits $5,220 $7,961
Accounts receivable 55,623 39,070
Inventories 26,673 19,792
Income taxes recoverable 2,825 494
Prepaid expenses and deposits 2,326 483
Shareholder loans receivable 15 35
Deferred income taxes 4,284 4,363
Discontinued operations -- 1,381
-------- -------
Total current assets 96,966 73,579
Capital assets, net 26,002 22,958
Shareholder loans receivable 244 517
-------- -------
$123,212 $97,054
-------- -------
-------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Bank indebtedness $7,223 $5,568
Accounts payable and accrued liabilities 29,739 23,931
Deferred revenue 9,989 6,184
Current portion of long-term debt 25 1,469
Discontinued operations -- 458
-------- -------
Total current liabilities 46,976 37,610
Long-term debt 3 2,878
-------- -------
Total liabilities 46,979 40,488
-------- -------
Shareholders' equity
Share capital 34,732 33,547
Retained earnings 41,501 23,019
-------- -------
Total shareholders' equity 76,233 56,566
-------- -------
$123,212 $97,054
-------- -------
-------- -------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30
(unaudited)
Three Months Ended Six Months Ended
September 30 (expressed in thousands September 30
------------------- of dollars, -------------------
1999 1998 except share and per share 1999 1998
---------- ------- amounts) ---------- -------
$52,190 $42,289 Revenues $101,680 $77,230
21,418 18,211 Cost of sales 41,361 33,485
---------- ---------- ---------- ----------
30,772 24,078 Gross profit 60,319 43,745
---------- ---------- ---------- ----------
Expenses
3,772 2,768 Research and development 7,400 5,480
15,035 12,744 Selling and marketing 29,913 23,635
2,965 2,071 General and administrative 7,332 4,269
---------- ---------- ---------- ----------
21,772 17,583 44,645 33,384
---------- ---------- ---------- ----------
9,000 6,495 Income before income taxes 15,674 10,361
3,740 2,600 Provision for income taxes 6,270 4,144
---------- ---------- ---------- ----------
$5,260 $3,895 Net income for the period $9,404 $6,217
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
14,074,295 13,880,243 Weighted average number of 14,047,897 13,888,383
---------- ---------- shares ---------- ----------
---------- ---------- ---------- ----------
$0.37 $0.28 Basic earnings per share $0.67 $0.45
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
$0.35 $0.26 Fully diluted earnings
per share $0.63 $0.42
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30
(unaudited)
Three Months Ended Six Months Ended
September 30 September 30
------------------- -------------------
1999 1998 1999 1998
---------- ------- ---------- -------
100.0% 100.0% Revenues 100.0% 100.0%
41.0% 43.1% Cost of sales 40.7% 43.4%
---------- ---------- ---------- ----------
59.0% 56.9% Gross profit 59.3% 56.6%
---------- ---------- ---------- ----------
Expenses
7.2% 6.5% Research and development 7.3% 7.1%
28.8% 30.1% Selling and marketing 29.4% 30.6%
5.7% 4.9% General and administrative 7.2% 5.5%
---------- ---------- ---------- ----------
41.7% 41.6% 43.9% 43.2%
---------- ---------- ---------- ----------
17.3% 15.4% Income before income taxes 15.4% 13.4%
7.2% 6.1% Provision for income taxes 6.2% 5.4%
---------- ---------- ---------- ----------
10.1% 9.2% Net income for the period 9.2% 8.0%
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIOD ENDED SEPTEMBER 30
(unaudited)
Three Months Ended Six Months Ended
September 30 (expressed in thousands September 30
------------------- of dollars) -------------------
1999 1998 1999 1998
---------- ------- ---------- -------
OPERATING ACTIVITIES
$5,260 $3,895 Income from continuing $9,404 $6,217
operations for the period
Add (deduct) items not affecting cash
60 63 Deferred income taxes 120 126
1,600 1,140 Depreciation and amortization 3,186 2,181
---------- ---------- ---------- ----------
6,920 5,098 12,710 8,524
Net change in non-cash
working capital balances
related to continuing
(5,403) (3,274) operations (18,973) (1,551)
---------- ---------- ---------- ----------
1,517 1,824 Cash provided by (used in) (6,263) 6,973
operating activities
---------- ---------- ---------- ----------
INVESTING ACTIVITIES
(2,387) (1,212) Purchase of capital assets (3,307) (2,202)
64 60 Decrease in shareholder 114 60
loans receivable
---------- ---------- ---------- ----------
(2,323) (1,152) Cash used in investing (3,193) (2,142)
activities
---------- ---------- ---------- ----------
FINANCING ACTIVITIES
(360) (618) Decrease in long-term debt (416) (864)
129 58 Proceeds from issuance of 512 58
common shares
---------- ---------- ---------- ----------
(231) (560) Cash provided by (used in) 96 (806)
financing activities
---------- ---------- ---------- ----------
Net increase (decrease) in cash
(1,037) 112 Continuing operations (9,360) 4,025
-- -- Discontinued operations -- (792)
---------- ---------- ---------- ----------
(1,037) 112 Net increase (decrease) in (9,360) 3,233
cash during the period
(966) 2,281 Cash position, beginning of 7,357 (840)
period
---------- ---------- ---------- ----------
($2,003) $2,393 Cash position, end of period ($2,003) $2,393
---------- ---------- ---------- ----------
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-0- 10/26/1999
For further information: please contact: Gordon Wilde, VP Finance & CFO, (905) 812-6220
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