Q*Media Reports Second Quarter Results
Vancouver, British Columbia - Friday, March 31, 2000, 2:59 PM EST
Future Growth From Acquisition And New Customer Win
Vancouver, March 31 - Q*Media Services Corporation (TSE:QMS)
today announced results for the second quarter of fiscal 2000 and
a $700,000 first time order from Net2Phone (NASDAQ:NTOP), a new
customer for the Company's turnkey software services. The new
customer win, on-going expansion of Q*Media's service offerings,
and the previously announced acquisition of Quebecor World's two
US facilities establish a strong foundation for future growth.
Second Quarter Highlights: (three months ended January 31, 2000
compared with three months ended January 31, 1999)
* Revenues were $22.8 million compared with $27.5 million.
* EBITDA1 were $2.5 million compared with $2.7 million.
* Net earnings were $912,000 compared with $1,401,000.
* Net earnings per share were $0.09 basic and $0.07 fully diluted
compared with $0.13 basic and $0.08 fully diluted.
Six Months Highlights: (six months ended January 31, 2000
compared with six months ended January 31, 1999)
* Revenues were $51.0 million compared with $54.3 million.
* EBITDA1 were $5.8 million in both periods.
* Net earnings were $2.4 million compared with $3.0 million.
* Net earnings per share were $0.23 basic and $0.17 fully diluted
compared with $0.29 basic and $0.17 fully diluted.
Robert M. Lawrie, President, said Q*Media's second quarter
performance was in line with expectations, with lower revenues
than last year's exceptional second quarter and the first quarter
of 2000. These three months are historically the slowest of the
year, because of the holiday slowdown-last year's strong second
quarter resulted from several unusually large orders, Mr. Lawrie
said. "We are pleased that the positive trend of higher EBITDA
and gross margins compared with last year continued into the
second quarter," Mr. Lawrie noted.
Q*Media continues to build its business by adding new customers
and expanding services to existing customers, Mr. Lawrie said. In
the second quarter, the Company welcomed significant new business
from Net2Phone, which is outsourcing full turnkey software
manufacturing and fulfillment to Q*Media. Meanwhile, CD-ROM
manufacturing capacity in Austin was recently increased by 50% to
better serve Dell Computer, one of the Company's key customers.
Q*Media has also begun the process for installation of DVD-ROM
manufacturing at Irvine, CA. Initially, the line will primarily
produce CD's, but this facility will have the capability for DVD
as demand begins to grow.
"In addition, the previously announced acquisition of two
facilities from Quebecor World, expected to close by May 31,
2000, creates a very exciting outlook for Q*Media, strengthens
our market position and adds significant blue chip customers." As
a result of the acquisition, annualized revenues for the Company
will double to exceed $200 million and similar increases in net
earnings and EBITDA are also expected.
Q*Media Services Corporation operates six supply chain management
facilities located in Vancouver, Canada; Redmond, Washington;
Irvine and Newark, California; Austin, Texas and Nashville,
Tennessee. These facilities provide complete outsourced supply
chain management services to technology customers such as
hardware manufacturers in the personal computer industry, content
publishers, and software publishers. The Company's services
include planning and procurement of materials, production and
assembly services, and fulfillment and inventory management.
Shares of Q*Media Services Corporation are traded on the Toronto
Stock Exchange under the symbol (QMS). U.S. S.E.C. exemption:
12g3-2(b) 82-3761. Further information can be found at the web
site: www.qmedia.ca.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Marla Gale or Jon W. Kieran, Investor Relations (416) 868-1079
Hume, Kieran Inc. marla@humekieran.on.ca
1 Earnings before interest, taxes, depreciation and amortization
(EBITDA). |
