Q3 results
February 7, 2000
ACD Continues to Record Sales Increases and Profits from the Internet
VICTORIA, BRITISH COLUMBIA--ACD Systems International Inc.
(CDNX:ASA) has released its third quarter results for the period
ending December 31, 1999 The quarter was highlighted by the
release of version 3.0 of ACD's flagship product, ACDSee(TM).
Version 3.0 includes a number of new features - a brand new
architecture designed to foster continuous grassroots plug-in
development and the addition of an advertising-based licensing
option designed to increase ACD's revenue generated per product
user. Since the mid-December release date, ACDSee(TM) version 3.0
has been among the most downloaded products on the Internet.
ACDSee(TM) was among 13 products, along with the likes of
Microsoft's Internet Explorer and Netscape Navigator, named to
Stroud's 1999 download Hall of Fame. The Hall of Fame recognizes
those products that were among the top 25 in terms of download
volume for at least 26 consecutive weeks.
Weekly sales doubled immediately upon release of ACDSee(TM)
version 3.0, even though free trial periods will not begin to
expire until early 2000. Total revenue for the quarter was $1.21
million versus $0.61 million for the corresponding quarter in
1998. Year-to-date revenues are also approximately double the
prior year, rising to $3.02 million from $1.587 million. Revenue
growth was achieved notwithstanding that all ACDSee(TM) version
3.0 users were in their pre-licensing trial period. The trial
periods will begin to end in the current quarter, at which time
users will have an option to pay the licensing fee or to continue
use in exchange for accepting banner advertising.
Wages and benefits for the 9 months ending December 31, 1999 were
$841 thousand, up from $403 thousand in 1998. The increase
results from ACD's investment in sales and marketing personnel
along with the key development personnel brought on to create the
next generation of ACD's products. Dr. Mantis Cheng has joined
ACD to add his expertise in embedded systems and high performance
Internet working technologies.
Cash flows from operations were $1.13 million for the 9 months
ending December 31, 1999, an increase of $317 thousand from the
corresponding period in fiscal 1999. Year-to-date earnings before
income taxes were $0.97 million, or 70% higher than the previous
year equivalent. Net earnings for the 9 months rose from $395
thousand in 1998 to $575 thousand at December 31, 1999. ACD had
working capital of $1.78 million at December 31, 1999. Earnings
per share for the 9 months were $0.03 per share.
The Company ended the quarter with over 17 million web site hits
in December, a copy of ACDSee(TM) version 3.0 being downloaded
every 5 seconds and new sales records being set weekly. ACD is
continuing to combine Internet-level growth with blue chip
profitability.
ACD Systems International Inc. (CDNX:ASA) develops and markets the
world's leading suite of digital image viewing products. Similar
industry prominence and customer penetration is anticipated with
the release of ACD's new instant messaging product, ACD Express
Communicator. ACD's website is located at www.acdsystems.com.
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FOR FURTHER INFORMATION PLEASE CONTACT:
ACD Systems International Inc.
Martin Winstanley
Vice-President
(250) 382-5828
martin@acdsystems.com
acdsystems.com
THE CANADIAN VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED
THE INFORMATION CONTAINED HEREIN. |
