NR:
TORONTO, Aug. 25 /CNW/ - 01 Communique Laboratory Inc. today announced
its third quarter 1999 financial results. The Company reported record setting
revenue for the quarter of $1,808,768 and net income of $417,374 or $0.022
earnings per share. On a year to date basis, revenue was $5,090,542 with net
income of $1,008,768 or $0.052 earnings per share, compared to revenue of
$2,920,982 and a net loss of $(1,710,921) for the same period in 1998.
The 3rd quarter revenue of $1,808,768 represents a 71% increase over the
same period in 1998 and is the 5th consecutive quarter the Company has
reported an increase in revenue. Net income for the quarter of $417,374 or
$.052 per share represents the 3rd consecutive quarter of positive earnings.
''I am pleased with the progress made during the year,'' said Andrew
Cheung, President and CEO of 01 Communique. ''One of the critical objectives
we identified for 1999 was to increase revenue on a profitable basis. We are
delivering on this goal.''
The revenue increase is attributable to:
(1) Strong North American retail channel. With the recent addition of
Office Max and Staples there are now over 3,000 retail stores in
North America carrying the Company's products.
(2) European expansion. Leveraging its strategic relationships in Europe,
the Company expanded into the U.K. with the signing of Dixon Stores
who now carry the Company's products in over 400 retail stores.
(3) Expanding the OEM channel. The signing of a bundling agreement with
GVC Corp. a large Taiwanese modem manufacturer, gives the Company
increased presence in the OEM (Original Equipment Manufacturer)
market.
''By expanding our presence in the North American retail market, opening
up in Europe and signing new OEM accounts we are continuing to implement our
growth strategy,'' says Brian McElwain, Vice President Sales & Marketing of 01
Communique.
Operating expenses for the quarter were $1,327,661. This is consistent
with the $1,372,177 incurred for the same period in 1998 and the $1,352,269
incurred in the 2nd quarter of 1999. Management continues to monitor expenses
very closely with expenses expected to be maintained at the same level to the
end of the fiscal year. Sales & marketing initiatives continue to concentrate
on innovative joint channel promotions designed to support sustainable revenue
growth.
Year to date the Company has generated $794,426 of positive cash flow
resulting in cash on hand of $158,536 comparing favorably to the beginning of
the year which commenced with bank debt of $635,890. The positive cash flow is
a result of:
(1) Profitable operations generating cash flow of $642,527.
(2) Financing which contributed net cash to the Company of $301,899.
(3) Partial redemption of the debenture utilizing cash of $150,000.
''With debt financing of $500,000 arranged subsequent to the end of the
quarter and the bank operating line of $750,000 there is access to over
$1,250,000 of cash to help finance our growth strategy,'' says Brian Stringer
Chief Financial Officer of 01 Communique.
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Selected Financial Information (unaudited):
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Statement of Operations
For the period ending 3 mos. 9 mos. 9 mos.
July 31, 1999 July 31, 1999 July 31, 1998
------------- ------------- -------------
$ $ $
Revenue 1,808,576 5,090,542 2,920,982
Gross profit 1,745,035 4,892,814 2,698,430
Operating expenses
Selling, G&A 1,022,878 3,085,736 3,627,088
Research & development 256,395 698,855 767,166
Other expenses 48,388 99,455 15,097
------ ------ ------
Operating expenses 1,327,661 3,884,046 4,409,351
Income (loss) for period 417,374 1,008,768 (1,710,921)
Income (loss) per share 0.022 0.052 (0.090)
Balance Sheet
As at July 31, 1999 As at Oct. 31, 1998
------------------- -------------------
$ $
Cash 158,536 Nil
Current assets 2,451,756 2,063,486
Total assets 2,542,397 2,177,486
Bank indebtedness Nil 635,890
Total liabilities 987,958 1,717,714
Shareholders' equity 1,554,439 459,772
Number of common shares issued 19,400,100 19,080,100 |
