2nd qtr results
AIT Advanced Information Technologies - News Release
Second quarter results
AIT Advanced Information Technologies AIV
Wednesday May 7 1997News Release
Mr Peter Bennett reports Revenues from continuing operations for the second quarter ended March 31 1997 were $4,028,000, up 65% from $2,438,000 for the same period last year. The company experienced a net loss from operations of $1,022,000 or $0.16 per share in the second quarter of fiscal 1997. This compares to a net loss of $3,283,000 or $0.51 per share in the second quarter of fiscal 1996, comprised of a net loss of $2,481,000 from continuing operations and $802,000 from discontinued operations. There were no losses from discontinued operations during Q2 of fiscal 1997. Revenue from continuing operations for the first six months of fiscal 1997 increased by 21% to $9,202,000 from $7,632,000 for the same period last year. Net loss for the first six months of fiscal 1997 is $1,498,000 or $0.23 per share. This compares to a net loss of $3,054,000 or $0.48 per share for the same period last year, comprised of a net loss from continuing operations of $1,986,000 and $1,068,000 from discontinued operations. Selling, general and administrative expenses are down 32% for the second quarter of fiscal 1997 and 23% year to date. This decrease is due to restructuring completed in fiscal 1996. Research and development expenses are up 72% for the second quarter of fiscal 1997 and 67% year to date due to increased expenditures on new product development for both identification and security systems and risk management products. Revenue from risk management products for the first six months is up 77% over the same period last year. RMP sales comprise 31% of revenue for the first six months of fiscal 1997. AIT's major objectives for fiscal 1997 are to develop new quality products, build a stronger organization and form productive, lasting distribution relationships. This quarter's accomplishments include: Products recently released include two new ISS reader products and new versions of the RMP products, Rapid Eye and Comfile. The second half of 1997 will see further releases of these products, as well as AIT's document issuance system, WISE and associated new document infilling technologies. In addition in Q2, AIT launched a major R&D effort to develop the next generation of RMP products to open new markets for AIT and add value to existing ones. Organizationally, AIT has added key individuals in sales, marketing and R&D who bring the skills necessary to achieve AIT's goal of dominance within its chosen markets. Q2 saw the advancement of AIT's RMP distribution channels through its newly established solution partner program, designed to foster rapid growth by using third parties to leverage AIT's sales and technology skills. An early result has been AIT's relationship with Westec Interactive Security, resulting in sales of AIT's Rapid Eye product to a leading quick service restaurant conglomerate and a large retail petroleum/convenience store chain. AIT's ISS (border control) business has also shown improvement in the second quarter with the addition of three new client countries and orders from four existing clients. Among the new contracts signed was a new pilot phase with Canada's passport office for slightly more than $2 million for pilot phase software services. Roughly $1.5 million was signed in Q1 for related hardware acquisition. The nature of AIT's business is that quarterly results may fluctuate due to the size and nature of discrete deals. Delays in closing an individual sale have the effect of reducing a current quarter's revenue but may only delay such revenue to a later quarter when the deal closes. Therefore, evaluating the company on the basis of individual quarterly results may not result in reaching appropriate long term conclusions.
STATEMENT OF EARNINGS
Three months ended March 31
($ 000s)
1997 1996
Continuing Operations
Revenues $4,028 $2,438
Direct costs 1,923 2,037
------ ------
Gross margin 2,105 401
------ ------
Expenses
Selling, general and
administrative 2,062 3,049
Research & dev. 992 576
------ ------
3,054 3,625
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Unusual Item - (625)
Net interest income (73) 33
------ ------
Earnings(loss)
before income taxes (1,022) (3,816)
Income tax recoverable
(expense) - 1,335
------ ------
Net earnings (loss)
from continuing
operations (1,022) (2,481)
Discontinued Operations
Net income (loss) - (802)
Gain on disposition of
discontinued
operations net of taxes - -
------ ------
- (802)
------ ------
Net earnings (loss) (1,022) (3,283)
====== ======
Earning (Loss) per share
Net earnings (loss) from
continuing operations $(0.16) $(0.39)
Net earnings (loss) $(0.16) $(0.51)
Net earnings (loss) from
continuing operations $(0.16) $(0.39)
STATEMENT OF EARNINGS
Six months ended March 31
($ 000s)
1997 1996
Continuing Operations
Revenues $9,202 $7,632
Direct costs 4,910 4,133
------ ------
Gross margin 4,292 3,499
------ ------
Expenses
Selling, general and
administrative 3,790 4,921
Research & dev. 1,865 1,115
------ ------
5,655 6,036
------ ------
Unusual Item - (625)
Net interest income (135) 108
------ ------
Earnings (loss) before
income taxes (1,498) (3,054)
Income tax recoverable
(expense) - 1,068
------ ------
Net earnings (loss)
from continuing
operations (1,498) (1,986)
Discontinued Operations
Net income (loss) - (1,068)
Gain on disposition
of discontinued
operations net of taxes - -
------ ------
- (1,068)
Net earnings (loss) $(1,498) $(3,054)
======= =======
Earnings (loss) per share
Net earnings (loss) from
continuing operations $(0.23) $(0.31)
Net earnings (loss) $(0.23) $(0.48)
Net earnings (loss) from
continuing operations $(0.23) $(0.31)
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