TSI TelSys Announces Second Quarter FY1999
Financial Results
Business Editors
COLUMBIA, Md.--(BUSINESS WIRE)--Aug. 9, 1999--Montreal Exchange
"TSI" - TSI TelSys Corporation announced today the results of
operations for the second quarter and for the first six months of
FY1999.
Revenue for the second quarter ending July 2, 1999 was US$2.2
million. Gross margin for the second quarter was 49.6% of revenues.
Gross margin as a percentage of revenues has increased in each of the
past three quarters.
Operating expenses in the second quarter of FY1999 were US$0.9
million which was a 40% decline compared with operating expenses of
US$1.6 million in the second quarter last year.
The Company remained profitable in the second quarter of FY1999,
its second profitable quarter in a row. The Company reported a net
profit of US$0.1 million for the second quarter of FY1999 (earnings of
US$0.01 per share) compared to a net loss of US$0.3 million for the
second quarter of FY1998 (loss of US$0.03 per share).
As previously announced in a press release on July 14, 1999, new
customer orders received during the second quarter totaled US$1.9
million. This total included the Company's first booking under its
technology partner program -- a US$500,000 license agreement with
Harris Corporation -- as well as two new orders from NEC of Japan.
Jay Pisula, TSI TelSys Corporation's President and Chief
Executive Officer said, "We are very pleased with the significant
improvement in bottom-line performance we have achieved so far this
year. We expect to continue profitable operations for the balance of
the year."
In the first six months of FY1999, revenue rose to US$5.5
million, a 19% increase compared with revenues of US$4.6 million in
the same period of last year. Gross margin for the first six months of
FY1999 was 47.2% of revenues, as compared to 33.3% of revenues in the
first six months of FY1998. The Company also reported a net income of
US$0.2 million for the first six months of FY1999 (earnings of US$0.02
per share) compared to a net loss of US$1.2 million (loss of US$0.13
per share) for the same period last year.
New customer orders received during the first six months of
FY1999 totaled US$3.8 million. The order backlog at the end of the
second quarter stood at US$4.1 million.
Headquartered in Columbia, Maryland, TSI TelSys is a leading
developer and manufacturer of high performance, multi-mission
satellite data processing systems for ground station operations and
satellite test and integration. The Company's LavaLogic(tm) business
unit is aimed at developing and marketing the next generation of high
level electronic design automation (EDA) software for designers of
integrated circuits and electronic systems.
Except for historical information contained herein, the matters
discussed in this press release contain forward looking statements
that, due to uncertainties, may differ materially from actual results.
Further information about TSI TelSys, including copies of press
releases, may be found through the TSI TelSys Internet Web site at
tsi-telsys.com.
Further information about LavaLogic can be found at
lavalogic.com. TSI TelSys Corporation is listed on the
Montreal Exchange, under the trading symbol "TSI". LavaLogic is a
trademark of TSI TelSys, Inc.
TSI TELSYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US$000s, except per share amounts, unaudited)
Second Quarter ended Six months ended
July 2, July 3, July 2, July 3,
1999 1998 1999 1998
Sales $2,197.1 $3,124.4 $5,534.8 $4,646.2
Cost of sales 1,106.8 1,830.4 2,924.8 3,095.4
Operating expenses 933.1 1,553.0 2,227.0 2,704.2
Operating income/(loss) 157.3 (259.0) 383.0 (1,153.4)
Interest income 5.4 30.2 12.8 65.6
Interest expense (100.0) (82.4) (214.3) (149.6)
Net income/(loss) $62.7 ($311.2) $181.5 ($1,237.4)
Earnings/(loss) per share -
basic and diluted $0.01 ($0.03) $0.02 ($0.13)
Weighted average number of
common shares outstanding -
basic and diluted 9,754.2 9,754.2 9,754.2 9,754.2
TSI TELSYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in US$000s, unaudited)
July 2, July 3,
1999 1998
ASSETS
Current assets $3,926.1 $4,943.6
Term deposits 87.2 159.8
Property, plant and equipment 946.0 1,158.5
Deferred software development costs 0.0 117.6
Notes receivable 34.1 70.6
Total Assets $4,993.5 $6,450.1
LIABILITIES AND STOCKHOLDERS'
EQUITY/(DEFICIT)
Current liabilities $7,298.3 $7,449.3
Long-term liabilities 160.9 63.4
Total Liabilities 7,459.3 7,512.7
STOCKHOLDERS' EQUITY/(DEFICIT)
Total Stockholders' Equity (2,465.8) (1,062.6)
Total Liabilities and
Stockholders' Equity/(Deficit) $4,993.5 $6,450.1
*T
--30--cl/ph*
CONTACT: TSI TelSys Corporation
Paul Sevigny, C.F.A., Chief Financial Officer
410/872-3900
Fax: 410/872-3902
Email: info@tsi-telsys.com
WWW: tsi-telsys.com |
