NHC Communications fourth-quarter results
NHC Communications Inc
NHC
Shares issued 12,460,659
1999-10-12 close $0.25
Tuesday Oct 12 1999
Mr. Sylvain Abitbol reports
NHC's results for the fourth quarter ended July 30, 1999, were as follows: The company
reported sales of $2,823,800, a 3-per-cent decrease, compared with $2,912,000 in the
corresponding period of fiscal 1998. Gross profit for the fourth quarter was $1,191,900 or 42
per cent of sales, compared with $1,309,600 or 45 per cent of sales for the similar period last
year.
The company reported a net loss of $1,736,900 for the quarter, compared with net income of
$1,860,900 for the fourth quarter of 1998. The net loss in the fourth quarter of 1999 includes
non-recurring items totalling $1.03-million with respect to trade and long-term receivables,
government assistance receivable and inventories, whereas the net income for the
corresponding quarter of 1998 includes a $1,806,500 gain on the disposal of the company's
U.K. subsidiary. Basic loss per share for the quarter was 14 cents, compared with basic
earnings per share of 15 cents for the corresponding period last year.
For the full year, NHC reported sales of $11,745,700, a decrease of 6 per cent, compared with
$12,529,200 last year. Including non-recurring items and the gain on the disposal of the
company's U.K. subsidiary in 1998, net loss was $2,178,300 in 1999, compared with net
income of $978,000 last year.
Corporate Mission 2000
Furthering the company's migration to newer technologies and strengthened focus on
high-growth industries, NHC Communications has adopted Corporate Mission 2000, a
strategic plan aimed at capitalizing on NHC's technological leadership in key niches. The
strategic plan includes the product market development program, a comprehensive program
aimed at penetrating growth markets and positioning the company in the corporate
enterprise, telecommunications and Internet markets.
The first step of Corporate Mission 2000 has been to group all of NHC's remote physical
layer management solutions, including the flagship Switchex/DVS product and the Resource
Sharing/Stakit line, into the new Virtual Cross Connect System (VCCS) Business Unit, which
is poised to replace Legacy Connectivity as the company's main revenue source.
"Corporate Mission 2000 builds on NHC's traditional leadership in remote physical layer
switching technology," said Sylvain Abitbol, president and chief executive officer. "The new
VCCS Business Unit will enable the company to leverage our core competencies to deliver
solutions to the corporate enterprise market. Our success in that market will provide the
company with a strong base for penetrating the telecommunications and Internet markets.
NHC's Corporate Mission 2000 is a comprehensive, realistic strategy, and we are confident
that we have the technology and people to execute it and achieve success."
CONSOLIDATED STATEMENT OF INCOME
12 months ended July 30
(thousands of dollars)
1999 1998
Sales $2,823,800 $2,912,100
Gross profit 1,191,900 1,309,600
Operating loss
from continuing
operations (1,635,100) (834,900)
Loss from
continuing
operations (1,622,500) (653,400)
(Loss) net
income $(1,736,900) $1,860,900
=========== ==========
Loss from
continuing
operations per
share, primary (13 cents) (5 cents)
(Loss) net
income per
share, primary (14 cents) 15 cents
CONSOLIDATED STATEMENT OF INCOME
12 months ended July 30
(thousands of dollars)
1999 1998
Sales $11,745,700 $12,529,200
Gross profit 5,255,000 5,619,700
Operating loss
from continuing
operations (2,411,800) (1,271,400)
Loss from
continuing
operations (2,626,000) (826,400)
(Loss) net
income $(2,178,300) $ 978,500
=========== ==========
Loss from
continuing
operations per
share, primary (21 cents) (7 cents)
Loss (net
income) per
share, primary (17 cents) 8 cents
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