Infowave reports second quarter 1999 results
The market doesn't seem to appreciate these numbers. On the face of
it, there's a 7 cent loss. However, if you remove the Research and
Development expense (most of which is for Wireless), IWM is breaking
even for the quarter.
Still no word on potential Wireless numbers...
Neil.
========================
BURNABY, BC, July 28 CNW/ - Infowave Software, Inc. (VSE:IWM) today
reported financial results for the second quarter ended June 30, 1999. The
company posted record gross profit margins and doubled shipments of its
award-winning PowerPrint printing solutions.
''All of us at Infowave are proud that our second quarter achievements
have added significant shareholder value,'' said Jim McIntosh, president and
CEO. ''The importance of the strategic agreements signed with Wireless
Knowledge and Glenayre can not be understated. As the GartnerGroup reported,
Infowave has carved itself an incredible position in the mobile data market.
The wireless computing market is moving forward very quickly and we expect to
attract additional wireless partners during the third quarter. The successful
closing of our $7.2 million financing positions Infowave to aggressively
pursue these opportunities. As always, we are pleased to report continued
sales growth and a big jump in profits from our Imaging business.''
Second Quarter Highlights
- Infowave's second quarter sales of $2.2 million were up 10% over the
second quarter of 1998, with year-to-date sales of $4.8 million up 29%
over 1998. As expected, first-half revenue growth was modest, but
management is pleased to report that year-to-date gross profits of $3.4
million were up 68% over 1998. The strong performance was driven by
record-setting gross profit margins, up sharply from 56% in the second
quarter of 1998 to 74% in 1999.
- Leveraging the success of its retail printing products, Infowave's
Imaging business posted year-over-year revenue growth for the sixth
quarter in a row and profitability for the fourth quarter in a row.
Second quarter shipments of Infowave's best-selling PowerPrint package
were up 102% over 1998 with an ''attach rate'' of 1.7% up strongly from
1.2% in 1998 - attach rate represents the percentage of purchasers of
new Apple computers who also purchase PowerPrint software kits. At the
same time, PowerPrint gross profit margins were up from 64% in 1998 to
75% in 1999. Year-to-date shipments of PowerPrint are up 83% over the
first half of 1998.
- Infowave closed the first tranche of a $7.2 million private placement
financing on June 30th and subsequently closed the second tranche on
July 8th. The offering was placed primarily with institutional
investors in Canada (40%), Europe (40%) and the United States (20%).
- In May, Infowave signed a strategic partnership with Wireless
Knowledge - a joint venture between Microsoft and Qualcomm - that will
see Infowave for Exchange leveraged as part of the Wireless Knowledge
premium service offering called Revolv. Infowave will receive a monthly
revenue stream for each Revolv subscriber that chooses the Infowave
wireless interface to their Microsoft Exchange information. Management
expects material revenue from this component of the agreement to begin
in late 1999 or early 2000.
- In June, Infowave announced a strategic development agreement with
Glenayre, the world's leading provider of wireless messaging
infrastructure. Infowave will develop desktop software, called Kodiak,
that will connect people using pagers and wireless phones to their key
information on the desktop. Infowave and Glenayre will be providing
major wireless messaging vendors and their customers with significant
new capabilities using their existing networks and mobile devices.
Management expects revenue from this project to begin in the fourth
quarter of 1999.
- Infowave maintained its leadership position among major printer
manufacturers as the dominant developer of Apple printing solutions. By
the end of the second quarter, Infowave was shipping customized
printing solutions for Hewlett-Packard, Ricoh, Brother, CoStar, Samsung
and Lexmark. Also during the quarter, a new strategic alliance was
struck with Canon that will deliver the first multi-function printer
for the Apple market . with shipments beginning in the third quarter.
- Infowave's development teams continued to launch new products.
PowerPrint for Networks was released in May and enables Apple computers
to connect to virtually any PC printer over an Ethernet network, the
most widely-installed Local Area Network (LAN) technology in the world.
Infowave also announced Infowave for the Net in April, which will
provide wireless web access to corporate information from laptops,
notebooks and handheld computers.
- Infowave's rapidly-growing profile in the wireless computing business
was fuelled by an aggressive conference schedule. During the quarter,
Infowave exhibited or presented at Spring Internet World in Los
Angeles, Spring COMDEX in Chicago, ICM Wireless Data in Toronto, the
Wireless Data Forum and Wireless Developers Conference in Monterey, the
Microsoft Tech ED Conference in Dallas, the Glenayre Wireless
Developers Conference in San Francisco and PC Expo in New York.
- During the second quarter Infowave and its products continued to
attract positive coverage from business and trade media including The
National Post, The Globe and Mail, Wall Street Journal Smart Money,
Messaging Magazine, Wireless Today, Computer Dealer News, MacWeek, Macs
Only, Macworld Today, Hard Copy Observer, Communications and
Networking, Business 2.0, About.com, PC Magazine and Bloomberg.
<<
STATEMENTS OF OPERATIONS
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
----------------------------------------------
Sales $2,220,599 $2,022,451 $4,790,322 $3,725,312
Cost of Goods Sold 583,407 900,415 1,351,586 1,682,568
------------------------------------------------------------------------
Gross Profit 1,637,192 1,122,036 3,438,736 2,042,744
Research and Development 1,069,707 772,790 1,943,446 1,471,780
Sales and Marketing 983,557 968,565 1,968,723 1,725,028
Administrative and Finance 721,053 500,707 1,300,602 920,655
------------------------------------------------------------------------
Operating Profit (Loss) (1,137,126) (1,120,026) (1,774,035) (2,074,719)
Other Income (Expenses) 22,952 31,249 39,798 35,896
------------------------------------------------------------------------
Net Income (Loss) (1,114,174) (1,088,777) (1,734,237) (2,038,823)
------------------------------------------------------------------------
Earnings (Loss) per Share (0.07) (0.09) (0.11) (0.17)
STATEMENTS OF CASH FLOWS
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
----------------------------------------------
Operations:
Net Income (Loss) $(1,114,175) $(1,088,778) $(1,734,237) $(2,038,822)
Items not Involving Cash 121,601 107,619 254,242 216,554
Non-cash Working Capital 197,073 (781,176) 1,185,660 (3,860,297)
------------------------------------------------------------------------
(795,501) (1,762,335) (294,335) (5,682,565)
Investments (183,685) (357,960) (332,322) (447,530)
Financing 2,737,077 3,102,709 2,916,764 6,221,136
------------------------------------------------------------------------
Increase (Decrease)
in Cash 1,757,891 982,414 2,290,107 91,041
Cash, Beginning of
Period 2,135,141 (437,004) 1,602,925 454,368
------------------------------------------------------------------------
Cash, End of Period $3,893,032 $545,410 $3,893,032 $545,409
BALANCE SHEETS
As at June 30
1999 1998
------------------------
ASSETS
Current Assets:
Cash $3,893,032 $545,410
Accounts Receivable 1,446,293 1,403,002
Special warrant proceeds -in escrow 1,689,147 3,105,216
Inventory 1,993,216 288,696
Prepaid Expenses 511,702 247,055
------------------------------------------------------------------------
9,533,390 5,589,379
Capital Assets 1,095,432 968,427
Deferred Charges 141,742 277,725
------------------------------------------------------------------------
Total Assets $10,770,564 $6,835,531
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities $1,316,889 855,501
Other Liabilities - -
------------------------------------------------------------------------
Total Liabilities 1,316,889 855,501
Share Capital 10,759,968 3,811,900
Special Warrants 4,236,634 6,169,449
Retained Earnings (Deficit) (5,542,927) (4,001,319)
------------------------------------------------------------------------
Shareholders' Equity 9,453,675 5,980,030
------------------------------------------------------------------------
$10,770,564 $6,835,531
>>
About Infowave
Infowave is a world-class software developer. The company was founded in
1984 and is headquartered in Vancouver, Canada. Infowave's Imaging Division
builds award-winning printing solutions - PowerPrint(R) and StyleScript(R)
software kits provide Apple(R) Macintosh(R) users with improved print quality
and access to more than 1,600 printers. Infowave's Wireless Division builds
mobile business solutions that use the power of wireless communications to
extend the reach of enterprise computing. Infowave for Exchange and Infowave
for the Net are the most advanced and secure wireless solutions for connecting
mobile workers to key corporate information and applications.
(C) 1999 Infowave Software, Inc.- Infowave, the Infowave logo, PowerPrint
and StyleScript are trademarks of Infowave Software, Inc. All other trademarks
are the property of their respective owners. Some of the above trademarks may
be registered in certain jurisdictions. This news release may contain certain
forward-looking statements that involve risks and uncertainties such as
competitive factors, technological developments and market demand. Actual
results could differ materially from the Company's expectations. The Vancouver
Stock Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
For further information: Corporate - Infowave Software, Inc., Todd
Carter, CFO, ir@infowave.com, 800-463-6928; Investor Relations - The
Investor Relations Group, Steve Hanson, President, irg@invrel.com,
800-444-9214
|
