Offshore Systems third-quarter results
Offshore Systems International Ltd OSI
Shares issued 22,661,493 Oct 29 close $0.33
Fri 29 Oct 99 News Release
Mr. John Jacobson reports
Offshore Systems International Ltd.'s unaudited financial results for the
third quarter ended Aug. 31, 1999, were as follows:
FINANCIAL RESULTS
Third quarter ended Aug. 31
(thousands of dollars)
1999 1998
Revenue $ 2,097 $ 3,006
Direct cost 1,156 2,318
Gross profit
(loss) 941 688
Expenses 1,558 1,712
Restructuring
costs 357 -
Net income
(loss) (974) (1,024)
Earnings
per share (4.3 cents) (4.5 cents)
FINANCIAL RESULTS
Nine quarter ended Aug. 31
(thousands of dollars)
1999 1998
Revenue $ 7,326 $ 7,209
Direct cost 3,874 5,798
Gross profit
(loss) 3,452 1,411
Expenses 4,831 4,723
Restructuring
costs 417 -
Net income
(loss) (1,796) (3,312)
Earnings
per share (7.9 cents) (14.6 cents)
During the third quarter, the company acted to reduce costs and increase
its cash balances. Early in September, 1999, Offshore entered into an
agreement with Ashlar Capital Corporation and Ashlar Financial Corporation
to strengthen its working capital. Additionally, changes in the management
structure and reductions in administrative burden reduced annual expenses
by approximately $2-million. At the end of the third quarter, Offshore had
$1.9-million in backlog, and strong prospects for new orders in the fourth
quarter. The cost reductions prepare the company to break even in the
fourth quarter of 1999.
Recent moves to cement strategic relationships with the Department of
National Defence in Canada, and to expansion of the company's product
offerings in the military and coast guard market have led to a number of
exciting new opportunities. Commercial interest in ECPINS remains strong,
although the present business conditions in the commercial shipping
industry as a whole have contributed to slow growth in this market sector. |
