ST Systems Reports Strong Third Quarter Results; Nine Month Revenues Up 54%,
Earnings Jump 136%
Vancouver, British Columbia--
ST Systems Corp. today announced results for the third quarter of
1999.
Third-Quarter Results (three months ended September 30, 1999
--------------------- compared with three months ended
September 30, 1998)
* Revenues were US$4.0 million compared with US$2.9 million,
an increase of 38%.
* Net profit was US$195,000 compared with US$139,000, an
increase of 40%.
* Net profit per share was US$0.02 compared with US$0.01.
Nine-Month Results (nine months ended September 30, 1999
------------------ compared with nine months ended
September 30, 1998)
* Revenues were US$13.1 million compared with US$8.5 million,
an increase of 54%.
* Net profit was US$715,000 compared with US$303,000, an
increase of 136%.
* Net profit per share was US$0.06 compared with $0.03.
David Whiteside, President, said with the strong third-quarter
results now in hand, ST is demonstrably achieving the challenging
growth targets set for itself at the beginning of 1999.
Third-quarter revenues were up 38% from the third quarter of
1998, with a corresponding increase in profits of 40%. More
dramatic were the year-to-date results. Nine-month revenues
increased 54% to US$13.1 million, with net earnings growing at a
significantly higher rate of 136% compared with the same period
last year. Most significantly, Mr. Whiteside added, the Company's
1999 nine-month revenues have now surpassed those for the entire
year in 1998. ST has undertaken to continue this impressive
growth through a range of internal improvements and a recent
acquisition.
Earlier this year, ST stated its intention to continue to
reposition itself as a one-stop shop for all the restaurateurs'
needs. To that end, the Company announced the formation during
the third quarter of the Supplies Division, its purpose being to
become the one-stop source for Point-Of-Sale (POS) consumables.
The Company's fine-dining product division, Sable Technologies,
has expanded its recently formed direct sales force into a number
of new major metropolitan areas to supplement the pre-existing
teleselling outreach. In addition, ST has added key personnel in
the areas of product development and service to support its
ongoing expansion.
Subsequent to the end of the third quarter, Sable also completed
the acquisition of the business base, assets, and service base of
Business Machines Inc. (BMI), a successful West Palm Beach,
Florida-based restaurant POS dealer. As an extension of the
teleselling and direct sales forces, the acquisition of a major
dealer is another example of Sable's emergence as a dominant
player in the restaurant POS industry.
Sable Technologies is in the process of shipping the final
Version 4.0/Y2K Upgrade Kit to its entire installed base. All of
the Company's current products were designed for Year 2000 (Y2K)
compatibility and, even though all are dependent on Microsoft's
Windows NT operating system, we know of no problems of major
significance at this time. ST Systems continues to monitor the
Y2K compliance performance on an ongoing basis.
ST Systems, through its subsidiaries Sable Technologies and
Documentor Sciences, provides experienced, professional
systems-integration services, addressing the Point-Of-Sale and
back-office needs of both full-service and fast-food restaurants.
With its deserved reputation for 24-hour service and customer
loyalty, ST Systems is favorably positioned for continued growth
and profitability into the new millennium.
Shares of ST Systems trade on the Vancouver Stock Exchange under
the symbol SYT.U. U.S. SEC exemption: 12g3-2(b) 82-4094.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Marla Gale or Cathy Hume, Investor Relations (416) 868-1079
Hume, Kieran Inc.
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