Got this from the below link. Info does not appear to have been too widely disseminated (wasn't on Yahoo). I certainly agree that the co. needs to get its PR act together. I'm glad I sold out in the mid threes although that was because the overall market looked awfully shaky at the end of July not because I had lost faith in the company. Not too happy that I bought back in. Got out of those shares at a loss after reading the results in Sept. Not too bad but they buried the 4th Q results in the whole year. I had to go to the SEDAR site to get the real lowdown and thats a pain because I always have to download about three different documents before I get the right one. That is just not forthcoming enough to meet my threshold for investment - not to mention the inventory rightdowns. Whats up with that? The company has to realize that they have a great little niche and and a superior product and tons of potential and stop acting like its some penny mining stock on the VSE. I suspect I may get back into this stock at some point but for now I'm waiting and seeing.
fin-info.com
VANCOUVER, Nov. 19 /CNW/ - Global Election Systems Inc.
Trading Symbol: GSM (TSE)
Global Election Systems Inc. is pleased to announce shipments of 401
Accu-Vote systems and 250 Accu-Touch systems for a total of 651 systems during
the first quarter of fiscal year 1999 ending September 30, 1998. This
compares to first quarter fiscal year 1998 of 597 Accu-Vote systems. The
first and second quarters are typically slower periods for election systems
sales in general election years. This was reflected in sales of Accu-Vote
systems. However, sales of the Accu-Touch system more than made the
difference which is very encouraging.
The revenue for first quarter 1999 was US$4,281,000 versus US$3,682,000
for the same period of fiscal year 1998, showing an increase of 16.3% or
US$599,000.
Earnings for the first quarter of fiscal year 1999 were US$387,000 (or
US$0.02 per share) before a write down of US$131,000 for trade-in inventory.
The earnings after the trade-in inventory write down were US$256,000 (or
US$0.01 per share) compared to the same period for fiscal 1998 of US$759,000
(or US$0.05 per share). Management of Global believes it is prudent to take
the most conservative approach concerning trade-in inventory by taking a
US$131,000 write down each quarter for 8 consecutive quarters to a zero
trade-in inventory balance. As trade-in inventory is sold, those sales will
be recorded as revenue.
Global continues to invest in the future by increasing research and
development expenses for first quarter fiscal 1999 over first quarter fiscal
1998 by US$268,000 or 250.6% from US$107,000 in first quarter fiscal 1998 to
US$375,000 in first quarter fiscal 1999. The increase is primarily due to
providing enhancements to software and hardware for the Accu-Touch system.
Global continues to fund research and development in order to provide leading
edge products to the election marketplace. The company continues to
experience increased operating expenses due to the I-Mark acquisition and
additional personnel to support the ever increasing sales of new accounts.
This increased cost should provide additional products and services to support
the company's continual growth.
During the first quarter of fiscal 1999, the company provided election
support services for primary elections for many of the over 600 voting
jurisdictions using Global election equipment. The primary election season
was very demanding on the company's resources; however, proved once again that
Global's products and services provide the highest standard in the industry.
The company has negotiated and closed a US$3,000,000 accounts receivable
financing line of credit. This line of credit will help with cash flow to
finance company growth.
Global enters the second quarter of fiscal 1999 with a backlog of
Accu-Touch systems to be delivered during the second quarter.
Global is one of the fastest growing election and vote tabulation
companies in the election industry. It continues to provide leading edge
technology to the election marketplace with technically advanced products such
as the Accu-Vote and Accu-Touch voting systems. Global is dedicated to
providing technical solutions to election jurisdictions.
Global is listed for trading on the Toronto Stock Exchange.
<<
GLOBAL ELECTION SYSTEMS INC.
RESULTS SUMMARIZED IN (US)$ AND (CDN)$
------------------------------------------------------------------------
1998 1997 1998 1997
US$ US$ CDN$ CDN$
------------------------------------------------------------------------
REVENUE 4,281,000 3,682,000 6,484,000 5,083,000
------------------------------------------------------------------------
EARNINGS BEFORE 387,000 759,000 586,000 1,048,000
INVENTORY WRITE DOWN
------------------------------------------------------------------------
INVENTORY WRITE DOWN (131,000) (198,000)
------------------------------------------------------------------------
EARNINGS AFTER 256,000 759,000 388,000 1,048,000
INVENTORY WRITE DOWN
------------------------------------------------------------------------
EARNINGS PER SHARE BEFORE 0.02 0.05 0.03 0.07
INVENTORY WRITE DOWN
------------------------------------------------------------------------
EARNINGS PER SHARE AFTER 0.01 0.05 0.02 0.07
INVENTORY WRITE DOWN
------------------------------------------------------------------------
>>
GLOBAL ELECTION SYSTEMS INC.
signed: ''HOWARD T. VAN PELT''
------------------------------
Howard T. Van Pelt, President
and Chief Executive Officer
-30-
For further information: Clinton H. Rickards (604) 261-6313, fax
(604) 261-9226 |
