TS Telecom just released year-end financial results. With an EPS of .699, why is the stock price at 1.25? What am I missing???
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Tuesday July 18, 6:05 am Eastern Time
Note: this article has been superseded by a later article.
Press Release
SOURCE: T S Telecom Ltd.
T S Telecom Announces Financial Results and Earnings Per Share for the FY Ended March 31,
2000
This announcement replaces an earlier announcement correcting earning per share and shown below.
MARKHAM, ON, July 18 /CNW/ - T S Telecom Ltd. is pleased to announce its financial results for the fiscal year ended March 31, 2000. Gross revenues in
fiscal 2000 were $18.3 million, a slight decline from $20.9 million realized a year earlier due to the restructuring of the China telecommunications industry. The
restructuring, now substantially completed, resulted in lower capital investments of 8.7% in telecom equipment. The impact to the Company was delays in orders
leading to the decrease in revenues.
Owing to the success of vertical integration and business reengineering undertaken during the year, the Company enjoyed a significant increase in its gross profit
margin to 75% from 46% in the previous year. Net income before tax for fiscal 2000 was $16.1 million, which included a one time dilution gain of $10.2 million
arising from the listing of the Company's subsidiary, T S Telecom Technologies Limited ("TST Technologies") on the Growth Enterprise Market ("GEM") operated
by the Stock Exchange in Hong Kong. Excluding the dilution gain, net income before tax from operations was 5.9 million for the year, an increase of $4.4 million or
305% from a year earlier. Net income after tax for year was $14.2 million, which included a $0.5 million income tax recovery and net of minority interests of $2.4
million.
Financial Highlights
For the year ended March 31, 2000 1999
(in thousand of dollars,
expect earnings per share) $ $
Gross revenue 18,342 20,889
Gross profit 13,786 9,541
Net income before tax and minority interest 16,106 1,449
Net income after tax and minority interest 14,190 1,182
Earnings per share - basic 0.699 0.059
Earnings per share - fully diluted 0.645 0.056
Financial Position
At March 31, 2000 the Company had total net assets of $36.7 million, as compared $9.7 million for the previous fiscal year. Included in total assets is cash and cash
equivalent of $22.6 million, an increase of $21.6 million from the previous fiscal year. The Company's strong cash position, resulting from the success of the share
listing of TST Technologies on the GEM, will enable the Company to grow at a more rapid pace, both internally and through acquisitions. The Company did not
have any short or long term debt outstanding at the year end.
Prospects and Outlook
Looking ahead, Mr. Raymond Lau, Chairman of T S Telecom Ltd. said, "with China's imminent entry into the World Trade Organization, T S Telecom is poised for
rapid and sustained growth in the telecom sector. Technology will undoubtedly transform the business landscape. We will continue to invest in technology and talent
to capitalize on the growth potential. We will introduce new products to benefit from the growth in demand in fiber optics and broadband applications. As we
broaden our product range and customer base, we see great potential in the Southeast Asia market and we are prepared to move full speed to capture these
opportunities."
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
For further information
please contact: Randy Hung, Chief Financial Officer, T S Telecom Ltd., (905) 470-2282 |
