Image Processing Systems Inc -
Image Processing second-quarter results
Image Processing Systems Inc IPV
Shares issued 19,902,503 1999-10-25 close $1.24
Tuesday Oct 26 1999
Mr. Ken Wawrew reports
Image Processing Systems Inc., under its trade name IPS Automation,
has posted a profit in its second quarter, which ended Sept. 30,
1999. IPS now has a track record of profitability over the last four
quarters, excluding the one-time restructuring expense in the fourth
quarter of the previous year.
In his quarterly report to shareholders, IPS president and chief
executive officer, Ken Wawrew, attributed the profit to the
continuing emphasis by management on expense reduction, and the
effectiveness of the company's diversification strategy. This
strategy calls for geographic diversification, resulting in strong
sales from Europe and the Americas, and product diversification,
resulting in sales of the new CRT glass inspection systems.
Profit from continuing operations for the second quarter, which ended
Sept. 30, 1999, was $233,361, compared with a loss of $2.9-million
for the same period last year. Revenues from continuing operations
for the second quarter were $5.7-million, compared with $1.2-million
for the same period last year. Fully diluted earnings per share were
one cent for the quarter, compared with a loss of 14 cents per share
in the second quarter of the previous year. The gross profit margins
from continuing operations also improved to 47.4 per cent, from minus
2 per cent in the previous year's second quarter.
The company's second-quarter results are in line with expectations.
First-quarter results were better than expected owing to a number of
Asian orders that were on hold from the previous fiscal year being
filled in the first quarter. Year-to-date revenues from continuing
operations are $14.1-million, compared with $3.2 million for the same
period last year, an increase of over 335 per cent. Year-to-date
earnings from continuing operations are $1.1-million, compared with a
loss of $4.5-million for the same period last year. Fully diluted
earnings per share are five cents, compared with a loss of 27 cents
in the first two quarters of fiscal year 1999.
"These results put us well on the way to exceeding the forecast of
$24-million in revenue for the year," comments Terry Clark, IPS vice-
president, finance and chief financial officer. "Our current order
backlog of $8.2-million combined with year-to-date revenue brings the
cumulative sales and orders to $22.2-million."
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Sept. 30
1999 1998
Revenue $5,676,195 $1,174,134
Cost of revenue 2,983,862 1,197,294
--------- ---------
Gross profit 2,692,333 (23,160)
Operating
expenses
Selling 756,333 1,221,911
Marketing 94,574 191,090
Engineering,
research and
development 1,021,687 822,347
Finance and
administration 525,115 771,390
--------- ---------
Total operating
expenses 2,397,709 3,006,738
--------- ---------
Operating
income (loss) 294,624 (3,029,898)
--------- ---------
Non-operating
income
(expenses) (61,263) 107,080
--------- ---------
Earnings (loss)
from continuing
operations before
income taxes 233,361 (2,922,818)
Provision for
income taxes - -
--------- ---------
Earnings (loss)
from continuing
operations 233,361 (2,922,818)
Discontinued
operations
Earnings (loss)
from operations - 88,269
--------- ---------
Earnings (loss)
for the period $ 233,361 $(2,834,549)
========= =========
Earnings (loss)
per share 1 cent (14 cents)
CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended Sept. 30
1999 1998
Revenue $14,084,860 $3,232,984
Cost of revenue 6,982,462 2,570,432
--------- ---------
Gross profit 7,102,398 662,552
Operating
expenses
Selling 2,626,769 1,926,061
Marketing 226,603 490,616
Engineering,
research and
development 2,066,214 1,522,540
Finance and
administration 1,143,401 1,575,152
--------- ---------
Total operating
expenses 6,062,987 5,514,369
--------- ---------
Operating
income (loss) 1,039,411 (4,851,817)
--------- ---------
Non-operating
income
(expenses) 14,368 343,041
--------- ---------
Earnings (loss)
from continuing
operations before
income taxes 1,053,779 (4,508,776)
Provision for
income taxes - -
--------- ---------
Earnings (loss)
from continuing
operations 1,053,779 (4,508,776)
Discontinued
operations
Earnings (loss)
from operations - (862,626)
--------- ---------
Earnings (loss)
for the period $1,053,779 $(5,371,402)
========= =========
Earnings (loss)
per share 5 cents (27 cents)
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