First Quarter report
HOOKUP COMMUNICATIONS RELEASES FIRST QUARTER RESULTS
OAKVILLE, Ont., Jan. 24 /CNW/ - HookUp Communication Corporation today announced financial results for the first quarter of fiscal 1997, three months ended November 30, 1996.
Sales for HookUp for the first quarter were $3.41 million. Gross margin was $1.35 million. HookUp has continued, in the first quarter, to concentrate on increasing its presence in the small and medium size business market. To this end, HookUp did make a number of moves to further develop this position.
In September, HookUp announced an agreement with Bell Canada to offer Bell's ISDN product, branded Microlink, in Ontario and Quebec. The agreement provided HookUp with the ability to provide a one-stop solution to ISDN dial-up customers.
HookUp also announced the creation of a business service division called Next Dimension, built around the acquisition of Wollongong Canada, the sole Canadian distributor for the Pathway Access line of products. The change to Next Dimension accompanied the decision to expand the product offerings of Internet-related software.
HookUp acquired 17 privately-owned Internet access providers and
complementary businesses in early 1996. The Company's focus has been to integrate operations and build a strong infrastructure to meet the demands of the Internet service market. HookUp realized further integration costs of $1.36 million which includes severance payments to redundant employees and consulting fees paid to former owners of the acquired businesses.
Depreciation and amortization in the amount of $1.11 million includes
amortization of goodwill of the acquired businesses in the amount of $427,000. Goodwill is being amortized over a five year period.
The net loss for the quarter is $5.0 million or $0.46 per share.
HookUp Communication Corporation is a Canadian Internet service provider, with network coverage offering local access to more than 90% of Canada's population. HookUp offers business focused services including: e-mail to pager; virtual office; and, web commerce solutions. HookUp is traded publicly on the Toronto Stock Exchange.
HookUp Communications Corporation
Three Months Ended November 30, 1996
(000's unaudited) $
Service and Sales Revenue 3,410
Carrier Charges and Cost of Products Sold 2,059
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Gross Margin 1,351
Network Operations, Selling and Administrative 3,906
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(Loss) Income before Undernoted Items (2,555)
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Integration Costs 1,360
Depreciation and Amortization 1,115
Interest, Net (32)
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2,443
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Loss Before Income Taxes (4,998)
Income Taxes 6
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Net Loss for Period (5,004)
Deficit, Beginning of Period (13,739)
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Deficit, End of Period (18,743)
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Net Loss per Share ($0.46)
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Weighted Average Number of Shares Outstanding 10,770,943
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