Kasten Chase reports second quarter results
Revenues from new technologies increase 52%
TORONTO, Aug. 12 /CNW/ - Kasten Chase Applied Research Limited (TSE-KCA)
today announced its unaudited financial results for the six months ended June
30, 1999. Revenues for the first six months of 1999 were $8.3 million, versus
$9.4 million for the same period in 1998. Net loss for the period was $5.3
million ($0.142 per share), versus a loss of $3.0 million ($0.079 per share)
for 1998. For the three months ended June 30, 1999, revenues and net loss were
$4.0 million and $2.9 million ($0.078 per share) respectively, versus revenues
of $4.3 million and a loss of $2.4 million ($0.063 per share) in 1998.
The second quarter loss reflects, for the most part, the Company's
ongoing investment in its wireless networking technology, RailPath(TM). In
order to minimize the ongoing impact of this continued investment, the Company
has created a new subsidiary, Springboard Communications Inc., which will be
focused on offering leading-edge technologies to the transportation sector.
Springboard will operate as a wireless networking (RailPath) and communication
management and control (InterTalk) business on an independent and self-funded
basis. This new structure will allow Kasten Chase to concentrate on, and
invest in, its core VersaPath(TM) and RASP technologies going forward, while
retaining participation in a long-term, high-growth industry.
Paul Hyde, president and chief executive officer said, ``My enthusiasm
and commitment to the success of our new VersaPath Web-to-Host product
offering has been validated by continued market place and product analyst
acceptance and support. We have proven that we have nothing short of the
world's best Web-to-Host products available in the market today.'
``During the first half of 1999,' continued Hyde, ``revenues from our
new technologies, including VersaPath, continued to grow, up 52% from 1998
levels. This reflects a continuation of the positive trend evidenced through
growing customer interest and acceptance.'
In June, the US National Security Agency announced that the first release
of two key components of RASP Secure Access had successfully passed all
technical and security tests. RASP is the only commercially available secure
remote access solution to have successfully completed NSA tests, clearing the
way for stepped-up sales and marketing efforts during the last half of 1999.
In early July, the International Post Corporation extended their existing
mail monitoring systems supply agreement with Kasten Chase for up to three
years, representing revenues to the Company of $4.5 to $8.0 million.
The New York City Transit Communications-based Train Control (CBTC)
trials have been successfully completed, and the lead contractor for the
Canarsie installation will be announced by early fall. System design work for
Railtrack is progressing in line with customer plans.
A proven, customer-focused leader in the data communications industry,
Kasten Chase has more than 25 years experience developing mission-critical
enterprise solutions for companies around the world. With headquarters in
Toronto, Canada and offices in Ottawa, Washington and London, Kasten Chase
works closely with customers and business partners in more than 30 countries.
With a unique customer-centric approach, Kasten Chase solutions support key
applications such as Web-to-Host connectivity, remote access, secure
communications, and network management. For all current product and financial
information, please visit the company's web site at www.kastenchase.com.
<<
Summary Statements
------------------
($000s)
Income Statement
----------------
For The Three Months For The Six Months
Ended June 30 Ended June 30
1999 1998 1999 1998
---- ---- ---- ----
Revenue $ 4,025 $ 4,339 $ 8,319 $ 9,423
Net Loss 2,916 2,383 5,305 2,963
per share $ 0.078 $ 0.063 $ 0.142 $ 0.079
Balance Sheet
-------------
June 30, 1999 December 31, 1998
------------- -----------------
Current Assets:
Cash $ 5,835 $ 10,082
Other 10,283 11,682
Other Assets 2,266 2,693
Current Liabilities 2,328 2,942
Shareholders' Equity $ 16,056 $ 21,515
>>
-30-
For further information: Jim Leech, Vice Chairman, Kasten Chase Applied
Research, (905) 238-6900, ext. 3433, email: j.leech@kastenchase.com; John
Carlesso, Investor Relations, Street Coverage Inc., (514) 288-1659, email:
carlesso@streetcoverage.com |
