Area firm back in the black
By KEVIN BELL, Ottawa Sun
Mosaid Technologies Inc. reported its first operating profit in
four quarters yesterday, but special charges and restructuring
costs took their toll on the firm's finances.
The company said it made a modest $267,000, or 4cents a
share, from operations in its fourth quarter compared to an
operating loss of $396,000 in the same period last year.
"We like that because it's in the black and the previous four
quarters were all in the red," said chief financial officer Richard
Boadway. "It should be kept in mind that this was in the midst of
a terrible year for our customers."
Two analysts who cover the Ottawa firm estimated operating
profits of 5cents and 2cents. "Quite frankly, I think we're ahead
of consensus estimates," Boadway said.
Boadway said the return to profitability should accelerate next
year as the semiconductor industry slowly recovers.
But when special charges are tabulated, Mosaid had a disastrous
year and fourth quarter.
In the quarter, a $3.57-million writedown from acquiring
Accelerix Inc. translated into a net loss of $3.3 million compared
to net earnings of $3,000 in the previous year.
The yearly net loss was $10 million compared to a net profit of
$5.2 million a year earlier. The loss included the Accelerix charge
and restructuring costs of $4.3 million.
Duncan Stewart, who manages the Navigator Canadian
Technology Fund, said analysts will focus on Mosaid's return to
operating profits, not the special charges.
"You just have to ignore all that Accelerix stuff," he said.
"This is actually a modest positive. It is coming out of the valley of
the shadow of death."
Chief executive George Cwynar said the company is emerging
from a "challenging year."
It will build on its new-found profitability as its Asian customers
revive and the market for memory chips recovers from its deep
doldrums, he said. |
