MARKHAM, ON, Aug. 30 /CNW/ - T S Telecom Ltd. reports its financial
results for the three months ended June 30, 1999, as follows. The Company's
revenues in the first quarter of fiscal 2000 were weaker in comparison to the
first quarter revenues of fiscal 1999. The decrease is directly attributable
to the reorganization of China's telecom regulators, which was first announced
in March 1998 but has continued to the end of June 1999. As a result of this
reorganization, the country's telecom sector has witnessed a general slowdown
in investments and therefore the Company's lower sales results were not
unexpected. On a positive note, the consolidation process is drawing to a
close and telecom investments in China is on the rise, and the Company fully
expects to realize the benefits of this increase in the balance of this fiscal
year.
Financial Highlights
For the 3 months ended June 30, 1999 1998
(in thousands of dollars, except earnings per share) $ $
Gross revenues 1,645 4,567
Net income (loss) before tax (934) 222
Net income (loss) (992) 175
Earnings (loss) per share (0.05) 0.01
Cash used in operations 358 9
Gross revenues for the three months ended June 30, 1999 were $1.6 million
as compared to $4.6 million for the three months ended June 30, 1998. The
Company recorded a net loss of $992,000 or $0.05 per share, as compared to net
income of $175,000 or $0.01 per share in the first quarter of the prior fiscal
year.
Cash used in operations in the first quarter of fiscal 2000 was $358,000
compared to $9,000 for the first quarter of fiscal 1999, with the decline
directly related to the reduction in revenues and the resultant net loss. At
the end of the first quarter, however, the Company's had cash and cash
equivalent of $695,000 with no debt or overdraft position. In comparison, the
Company's cash position at June 30, 1999 was $657,000, which includes a bank
overdraft position of $189,000.
The Company's share of after tax earnings of its 30% equity investment in
Shanghai Hua Cheng Telecommunications Equipment Co., Ltd. (``SHC') was
$113,000 for the three months ended June 30, 1999. This is slightly lower
than the $142,000 in the first quarter of fiscal 1999. As in the case for T S
Telecom Ltd., SHC's financial results reflect the impact of China's telecom
restructuring.
Back Orders
At June 30, 1999, T S Telecom Ltd. had back orders of $2.3 million, which
are expected to be shipped in the second quarter of this fiscal year. The
revenues and costs associated with these orders will be recognized upon their
delivery.
T S Telecom Ltd. together with its subsidiaries is a value added
distributor, manufacturer and systems integrator of specialized
telecommunications equipment in China, including Hong Kong. The Company's
focus is to assist telecommunication providers to ensure trouble free and
continuous operations of their networks. The Company offers a range of
products including advanced maintenance and monitoring systems, and digital
access equipment for telecommunication and related networks. It is the
exclusive and/or preferred agent and distributor in Hong Kong and China
for a number of U.S., European and Asian manufacturers of technology based
products including Sparton Technology, Inc. and Opnet Technologies. It is
also engaged in the development and production of its own Fiber Optics
Monitoring System and Cable Pressurization Systems. T S Telecom Ltd., through
its wholly owned Hong Kong subsidiary T S International Co., Ltd., has a 30%
interest in a manufacturing joint venture in Shanghai, with the remaining 70%
owned by a subsidiary of The Shanghai Telephone Bureau.
For more information, please contact Randy Hung, Chief Financial Officer
of T S Telecom Ltd., at (905) 470-2282.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein. |
