Here's the press release...
IPS Reports 106% Revenue Growth For Nine Months
MARKHAM, ONTARIO--(BUSINESS WIRE)--Feb. 14, 2000-- (TSE:IPV. - news)
Continuing Profits In Third Quarter Solidifies IPS Turnaround
Image Processing Systems Inc. (''IPS'') announced today that it has again posted a profit in its third quarter, which ended December 31, 1999. IPS now has continuing profitability over the last five quarters, excluding the one time restructuring expense in the fourth quarter of the previous year.
In his quarterly report to shareholders, IPS President & CEO Ken Wawrew stated that third quarter profits along with a strong order book for the fourth quarter clearly signify a turnaround for the Company. Mr. Wawrew attributed the Company's strong growth to several driving factors that play a key role in the growth of the display markets. Skyrocketing Internet growth is driving PC sales which, in turn, creates the demand for IPS's systems for the display industry. This phenomenal growth is evident by the Company's revenues, which have doubled from last year. The Internet is now a key growth driver for IPS, in the same way that it is for ''dot.com '' companies.
Mr. Wawrew also noted that IPS commercialized its new Automated Glass Inspection (AGI) system in this quarter. The AGI 9900 CRT inspects the face of CRT displays during manufacturing for a variety of defects and provides IPS an exciting new market segment with significant growth potential. Since the introduction of AGI, IPS has received orders from three customers totaling $3 million.
Year-to-date revenues from continuing operations are $17.9 million, compared to $8.7 million for the same period last year, an increase of 106%. Year-to-date earnings from continuing operations are $1.1 million, compared to a loss of $4.5 million for the same period last year. Fully diluted earnings per share are 5 cents, compared to a loss of 27 cents in the first three quarters of FY1999.
Profit from continuing operations for the third quarter, which ended December 31, 1999, was $54,909, compared to a loss of $24,849 for the same period last year. Revenues from continuing operations for the third quarter were $3.8 million, compared to $5.5 million for the same period last year. The gross profit from continuing operations improved to 66.4%, compared to 54.2% in the previous year's third quarter.
''Third quarter revenues were less than expected, due to a customer delayed shipment of a large order, which will be shipped in the fourth quarter. IPS's year-to-date results, combined with our current order backlog of $9.6 million, positions the Company to exceed its original budget of $24 million in revenue for the year,'' comments Terry Clark, IPS Vice President, Finance and Administration & CFO. ''Our continued profitability is a result of maintaining high profit margins and the emphasis by management on improved operations and expense control.''
IPS is a global e-Vision (electronic vision) systems provider. The Company's automated display inspection and alignment (ADI) systems are used by most of the world's largest display manufacturers. IPS also provides advanced glass inspection solutions for the automotive, display and brewing industries, developed in close co-operation with key customers. IPS, an ISO 9001 and IQNET certified company, is listed on the Toronto Stock Exchange under the symbol IPV and has offices and representatives in Brazil, Canada, China, Japan, Korea, The Netherlands, Poland, Taiwan, the United Kingdom and the United States. Copies of our press releases are available on the IPS website at www.ipsautomation.com.
A conference call will be held February 15th at 12:00 noon with Mr. Ken Wawrew, President & CEO, discussing these results and the Company's outlook. Local callers should dial 416-641-6448 while long distance callers should dial 877-331-7860.
No password is required. Mr. Wawrew's conference call and
accompanying presentation will also be broadcast live at www.q1234.com. The replay will be available to listeners from 2:00 p.m. on February 15th until 12:00 noon on February 18th, by calling 416-626-4100 (registration number 14384357). |
