RDM Reports Second Quarter Results
WATERLOO, ON, May 4 /CNW/ - RDM Corporation (RDM) today announced the
results of operations for the period ending March 31, 2000. For the six months
ending March 31, 2000, revenues totaled $2,562,017 compared with $2,159,898
for the six months ending March 31, 1999. Net loss for the first six months
was $615,141 or $0.05 per share versus a net loss of $341,545 or $0.05 per
share for the same period last year.
For the quarter ending March 31, 2000, revenues amounted to $1,345,521
compared with $1,392,393 as at March 31, 1999. Net loss for the quarter was
$341,545 compared with a net loss of $13,527 for the second quarter of last
year.
The Company's revenues from point-of-sale and digital imaging products
and services continued to grow significantly. They totaled $576,263 for the
quarter, representing a 35% increase over the previous quarter, and a 388%
increase over the same quarter a year earlier.
"We are very pleased with the Company's recent achievements both in terms
of revenue growth and platform development," said Robert Nally, Chairman of
RDM Corporation. "The completion of development and the first installation
during the quarter of our web-based financial document digital image archive
system enables the Company to now offer the market a complete electronic
payment system solution to fill their processing needs. With the addition of
the web-based document image archival system to RDM's offering of payment
solutions for payment processing, the Company is now able to provide a
transaction fee based image archival and retrieval service to its customers."
Revenues from the Company's MICR quality control products remained strong
for both the quarter and six-month period and were well within management's
plans and expectations and totaled $683,048 and $1,468,325 respectively. On a
year over year comparison, revenues from MICR quality verification equipment
and services are below the total revenues recorded in the prior year, as last
years corresponding fiscal periods included significant amounts from a custom
engineering contract.
Operating expenses of $2,202,176 for the six-month period remained
virtually unchanged from the $2,211,571 incurred a year earlier. However,
there was a shift in expenditures from research and development toward sales
and marketing. General and administrative expenses for the quarter totaled
$342,223, a small increase from $250,429 in 1999. The increased expenditure
was largely the result of some restructuring activities and increased
management initiative efforts related to corporate business development.
RDM develops and provides electronic cheque conversion systems and web-
based payment archive services to retailers, banks and government agencies, as
well as print quality control technologies to banks, printers and payment
processors in over 35 countries. Through its e-commerce division, Xign, Inc.,
it provides e-payment technology to businesses that allow them to safely e-
mail digitally-signed payments over the internet. RDM Corporation is a public
company listed under the symbol "RC" on the Canadian Venture Exchange.
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RDM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited) (Unaudited)
Second Quarter Six Months
For the periods ended
March 31, 2000 1999 2000 1999
$ $ $ $
SALES 1,345,521 1,392,393 2,562,017 2,159,898
COST OF SALES 523,171 346,650 974,982 479,413
--------------------------------------------------
GROSS PROFIT 822,350 1,045,743 1,587,035 1,680,485
--------------------------------------------------
EXPENSES
General and
administration 342,223 250,429 612,820 497,571
Sales and marketing 319,891 244,584 607,443 574,920
Research and
development 409,447 527,914 817,487 1,069,416
Interest on long
term debt 12,095 5,811 22,083 12,500
Amortization 80,239 30,532 142,343 57,164
--------------------------------------------------
1,163,895 1,059,270 2,202,176 2,211,571
--------------------------------------------------
NET (LOSS) (341,545) (13,527) (615,141) (531,086)
Deficit, beginning
of period (5,356,061)(5,662,136) (5,356,061) (5,144,577)
--------------------------------------------------
DEFICIT, END
OF PERIOD (5,629,657)(5,675,663) (5,971,202) (5,675,663)
--------------------------------------------------
--------------------------------------------------
LOSS PER SHARE (0.028) (0.001) (0.051) (0.053)
(Weighted Average) --------------------------------------------------
--------------------------------------------------
RDM CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
As at March 31, 2000 1998 1999
$ $ $
ASSETS
CURRENT ASSETS
Cash 1,488,232 - 1,526,956
Accounts receivable 1,264,816 - 710,006
Inventory 971,779 - 634,283
Prepaid expenses 45,017 - 60,051
--------------------------------------------------
3,769,844 - 2,931,296
CAPITAL ASSETS 731,863 - 750,304
--------------------------------------------------
4,501,707 - 3,681,600
--------------------------------------------------
--------------------------------------------------
LIABILITIES
CURRENT LIABILITIES
Accounts payable and
accrued liabilities 1,033,900 - 1,116,257
Deferred revenue 223,943 - 146,843
Net liabilities of
discontinued operations - - 565,911
Current portion of
long-term debt 128,161 - 124,305
--------------------------------------------------
1,386,004 - 1,953,316
LONG-TERM DEBT 5,867 - 99,686
--------------------------------------------------
1,391,871 - 2,053,002
--------------------------------------------------
SHAREHOLDERS' EQUITY
SHARE CAPITAL 9,081,038 - 6,814,836
SPECIAL WARRANTS - - 489,425
DEFICIT (5,971,202) - (5,675,663)
-------------------------------------------------
3,109,836 - 1,628,598
-------------------------------------------------
4,501,707 - 3,681,600
-------------------------------------------------
-------------------------------------------------
Second Quarter Six Months
For the periods
ended March 31, 2000 1999 2000 1999
$ $ $ $
CASH PROVIDED BY
(USED IN) :
OPERATIONS :
Net loss (341,545) (13,527) (615,141) (531,086)
Items not involving
cash:
Amortization 80,239 30,532 142,343 57,164
Shares issued
to employees - 26,941 47,350
Change in non-cash
operating working
capital (280,613) 384,719 (444,829) 310,952
-------------------------------------------------
(541,919) 428,665 (917,627) (115,620)
-------------------------------------------------
FINANCING :
Issuance of share
capital and
special warrants 1,390,982 1,092,875 1,588,982 1,092,875
Shares sold
(purchased) - 4,073 - (14,877)
Proceeds from
long-term debt - 39,065 - 75,460
Repayment of
long-term debt (29,517) (36,867) (65,112) (66,807)
-------------------------------------------------
1,361,465 1,099,146 1,523,870 1,086,651
-------------------------------------------------
INVESTMENTS :
Purchase of capital
assets (90,572) (224,482) (104,669) (489,526)
Cash used in operations 759,258 223,627 986,658 1,045,451
Cash, beginning of
period 759,258 223,627 986,658 1,045,451
-------------------------------------------------
CASH, END OF PERIOD 1,488,232 1,526,956 1,488,232 1,526,956
-------------------------------------------------
-------------------------------------------------
Supplementary Segmented Information
Second Quarter Six Months
2000 1999 2000 1999
Sales to external
customers $ $ $ $
Cheque Quality 683,048 1,221,416 1,468,325 1,939,032
Point of Sale 576,263 118,427 1,000,844 168,316
e-Commerce 86,211 52,550 92,849 52,550
-------------------------------------------------------------------------
Total consolidated 1,345,522 1,392,393 2,562,018 2,159,898
-------------------------------------------------------------------------
Operating Income (loss)
Cheque Quality 314,220 710,547 722,396 1,107,047
Point of Sale (193,074) (469,851) (420,283) (1,051,039)
e-Commerce (138,746) (122,011) (318,793) (373,165)
-------------------------------------------------
Total operating income
(loss) from reportable
segments (17,600) 118,685 (16,680) (317,157)
Unallocated general and
administrative 323,945 132,212 598,461 213,929
-------------------------------------------------------------------------
Total operating loss (341,545) (13,527) (615,141) (531,086)
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For further information: Jay Hussey, Investor Relations, The Equicom
Group Inc., (416) 815-0700, ext 225 phone, (416) 815-0080 fax, e-mail:
jhussey@equicomgroup.com; Douglas Newman, CFO, RDM Corporation,
(519) 746-8483 phone, (519) 746-3317 fax, e-mail: dgn@rdmcorp.com;
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw. |
