Just in case you haven't seen it
FOR : Pinetree Capital Corp.
CDNX SYMBOL: PNP
March 1, 2000
Pinetree Capital Corp.: ENGHOUSE SYSTEMS LIMITED REPORTS RECORD QUARTERLY REVENUE
TORONTO, ONTARIO--Pinetree Capital Corp. ("Pinetree") wishes to announce that Enghouse Systems Limited ("Enghouse"), a corporation in which Pinetree holds an approximate 7.6% equity interest, recently issued the following press release:
"Markham, Ontario (February 29, 2000) --- Enghouse Systems Limited (TSE: ESL), a world leading Canadian software engineering development company specializing in spatial asset management solutions, today announced financial results for the first quarter of fiscal 2000.
Total revenue for the three-month period ended January 31, 2000 was $9.0 million compared to $5.1 million for the same period last year. This represents record quarterly revenue for the Company. Revenue from software licences was $7.8 million, representing 86 per cent of total revenue, revenue from maintenance was $1.1 million, or 12 per cent of total revenue, and revenue from consulting was $216,000, or 2.4 per cent of total revenue. The increase in total revenue is primarily due to the remaining backlog of a $12-million follow-on order from IBM in October 1999 for the supply of additional GeoNet(TM) licences.
Gross margins remained strong at 96.8 per cent of sales, reflecting the substantial product revenue mix.
Operating expenses were $8.3 million compared to $2.8 million for the same period last year. The increase primarily reflects new sales and marketing initiatives, the recent management restructuring, ramped up product development, the write-down of acquired software and the writing off of deferred development costs that were previously capitalized, in keeping with the Company's commitment to strengthening its balance sheet. Selling and marketing expenses increased to $536,000, or 6.0 per cent of sales, from $201,000, or 4.0 per cent of sales in the first quarter of 1999. General and administrative expenses increased to $4.0 million, or 44 per cent of sales, from $1.5 million, or 30 per cent of sales. Research and development expenses increased to $1.8 million from $871,000 the year before, representing 20.2 per cent of sales compared to 17.0 per cent of sales in the first quarter of fiscal 1999.
Net income was $455,000, or $0.05 per shares, compared to $1.4 million, or $0.16 per share, in the same period last year.
The balance sheet continued strong. Working capital increased to $35.2 million from $30.6 million at January 31, 1999. The cash balance increased 39 per cent to $40.9 million from $29.4 million in the same quarter last year. The Company continues to have no debt.
"We've made a decision to focus on accelerating development of key products, increasing sales and revenue, and building a stronger balance sheet to support future initiatives," said Andrew Nellestyn, Enghouse Interim President and Chief Executive Officer. "We're ensuring that Enghouse has the financial flexibility and product pipeline to capitalize on emerging growth opportunities in this fast-changing industry."
During the quarter, Enghouse received a $6-million order from IBM for the supply of additional GeoNet licences. Enghouse also generated repeat business with Topeka, Kansas-based Western Resources for additional GeoNet(TM) licences. And, the Company sold licences for POWERWORKS(TM) APD (Automated Plat Design) to Idaho Power, in Boise, Idaho, and Nevada Power, in Henderson, Nevada.
Also during the quarter, Enghouse continued to build its presence in the Southern U.S. market, reaching a new business partner agreement with CADD Solutions, a Memphis, Tennessee-based computer consulting and systems development firm, specializing in the sale and service of CAD systems and peripherals. CADD will provide Enghouse clients with data conversions and programming services. Enghouse's Professional Partners Program promotes international alliances with companies that complement Enghouse's products and services.
"In the short term, we will continue to aggressively position our existing products and plan to streamline our operations to focus only on geographic markets with the greatest growth potential," continued Mr. Nellestyn. "We are confident that Enghouse will emerge from this transitional phase well positioned to achieve new levels of profitable growth --- and to deliver increased value to shareholders."
Enghouse Systems Limited is a world leading software engineering company that develops GIS (Geographic Information Systems)-based solutions for Telecommunications and Utility companies. Enghouse products provide spatial asset management solutions to hundreds of customers globally by offering a collection of world-class robust applications under the trade names, TelcoWORKS(TM), PowerWORKS(TM), CATVWORKS(TM), GusWORKS(TM), and SpatialEXPRESS(TM)."
For further information on Enghouse Systems Limited, please visit its website at www.enhouse.com.
Pinetree Capital Corp. is a publicly traded company that focuses on being first to fund emerging growth businesses with breakthrough proprietary products. Pinetree acts as a catalyst for success by taking a leadership position in its investee companies and committing both financial and human resources to their projects. Pinetree's goal is to maximize both short and long-term investment value for it shareholders. Pinetree's focus is in the e-business sector, and in particular, companies with internet enabling technology. Trading in Pinetree's shares are reported on the Canadian Venture Exchange (the "CDNX") under the symbol "PNP". Visit the Pinetree Capital Corp. web site at www.pinetreecapital.com.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree's results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements.
- 30 -
FOR FURTHER INFORMATION PLEASE CONTACT : |
