Record Revenues For Twenty Sixth Consecutive Quarter
OTTAWA, ONTARIO-- November 30, 1999
NewSys Issues Second Quarter Results and Announces Conference Call
NewSys Solutions Inc. ("NewSys" or the "Company"), (ASE: NSS) is
pleased to announce its twenty-sixth consecutive quarter of
revenue growth and profitability. Revenue for the second quarter
and six-month period ending October 31, 1999 reached $5,129,432
and $9,874,527 respectively. This represents an increase over the
same period in the previous year of 25.7% and 29.8% respectively.
Net earnings for the three month period were $122,841, an increase
of 91.4% over the same period the previous year and $255,670 for
the six month period, an increase of 90.7%. Earnings continue to
reflect the benefit of NewSys' investment in its infrastructure as
well as its continued focus on Business Intelligence (BI).
/T/
Three months ending Six months ending
October 31 October 31
1999 1998 1999 1998
Revenues: $ 5,129,432 $ 4,081,700 $ 9,874,527 7,608,300
Net Profit: $ 122,841 $ 64,190 $ 255,670 134,100
Net
Profit/Share:$ 0.011 $ 0.006 $ 0.022 .013
Avg.
Shares
Outstanding: 11,661,969 10,376,780 11,528,803 10,188,390
All figures in Canadian Dollars
/T/
"This has been a very exciting quarter for the Company", stated
Jim Cocks, Chief Financial Officer of NewSys. "We have achieved
several financial milestones, which validate our strategy for
growing revenues and increasing profitability." For the first
time in the Company's history, quarterly revenues surpassed $5
million, resulting in an annual revenue run rate in excess of $20
million. In addition, the Company's efforts at increasing
profitability have resulted in an increase in gross margin in the
quarter to 20.1% from 15.9% in the same quarter the previous year.
These efforts have nearly doubled the Company's net earnings for
the current quarter and six month period over the same periods
last year.
Late in the quarter, NewSys announced the formation of an Oracle
business practice and the intent to acquire CDS Inc., an Ottawa
based Oracle services company. Mark Quigg, the Company's
President and Chief Executive Officer, commented that, "We are
pleased that our internal sales growth continues at a rate in
excess of industry averages. With the recent intent to acquire
CDS, we are also looking outside the Company to augment our
revenue and earnings growth. This acquisition complements our
commitment to increase NewSys' profitability and revenue base."
NewSys would also like to invite members of the investment
community to participate in a conference call to review second
quarter results and the Company's operations. The call will be
held on Wednesday, December 1st at 11:00 a.m. Eastern Standard
Time. Interested parties should call either 416-695-5806 or 1
800-273-9672, and request the "NewSys" call. An instant replay of
the call will be available, two hours following the call, on
NewSys' website www.newsys.com or Linear Capital's website
www.linearcapital.com.
NewSys is an established IT-services company that delivers
forward-looking solutions in business intelligence, systems
integration and application management -and complements those
solutions with a variety of proprietary and customized software
products. Employing over 160 IT professionals, NewSys' clients
include Fortune 500 corporations and government departments
located in both Canada and the United States. The Company has
recorded 26 consecutive quarters of growth and profitability and
was acknowledged by Profit Magazine, for the third consecutive
year, as one of the fastest growing companies in Canada. For more
information on NewSys' software and services, please contact the
company's web site at www.newsys.com or telephone at (877)
761-9436.
All logos, trade names, and product names and trademarks or
registered trademarks are property of their respective owners. The
Alberta Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Relations: Tony Croll
Linear Capital Corp.
tel. (416) 364-2266
tony@linearcapital.com
www.linearcapital.com
or
Public Relations: Sahira (Sara) Piracha
Director of Corporate Marketing
tel. (877) 761-9436
sara.piracha@newsys.com |
