Canadian Marconi Results - Essentially flat - Novatel valuation was US $80 million for a Price/Sale ratio of over 5.
During the quarter, CMC acquired a 58% interest in NovAtel Inc., a leading Global Positioning System (GPS) technology corporation located in Calgary, Alberta, for a cash consideration of $69.9 million. The Corporation's consolidated financial results include the financial results of NovAtel Inc. from April 17, 1998, the date ofacquisition.
First quarter revenues totalled $66.6 million, an increase of $6.2 million or 10.3%, compared to the same period last year. The increase is due primarily to the completion of certain military radio deliveries, sales growth in space electronics products and the consolidation of NovAtel's revenues.
>> Novatel revenues are about C$5 million a quarter. Therefore, Canadian Marconi without Novatel was essentially flat. Novatel results were posted elsewhere.<<
Net income for the period increased to $5.3 million or $0.22 per share, compared to $3.7 million or $0.15 per share last year, due largely to an increase in unrealized foreign exchange gains of $2.8 million on the Corporation's U.S. dollar short-term investments.
>> Profits declined from $3.7 million to $2.5 million, without foreign currency gains.>>
Arun |
