Press Release: Unique Broadband Systems, Inc.
Unique Broadband Systems Begins Fiscal 2001 with Stellar First Quarter Results and Announces Growth Strategy
346 % Increase in Revenue for Q1 Paves the Way for Growth in Both Top and Bottom Lines in Fiscal 2001
CONCORD, ON, Sept. 29 /CNW/ - Unique Broadband Systems, Inc. (CDNX: UBS - news), a leader in high-speed wireless transmission solutions, today reported
consolidated results for its first quarter of fiscal 2001, which ended August 31, 2000. For the quarter, UBS had net earnings of $431,484 (or income of $0.0045 per
common share), as compared to a loss of $772,181 (or a loss of $0.0094 per common share) for the same period last year. Consolidated sales for the first quarter of
fiscal 2001 of $3.7 million represent an increase of 346% over those in Q1 of fiscal 2000, which were $836,745.
"The expertise that we have developed in the area of OFDM technology is only beginning to pay dividends for UBS," said Stephen Rosen, CFO of UBS. "The
growth in both revenue and earnings over the comparable period last year demonstrates two things; firstly, that our vision of becoming a world-wide leader in
high-speed mobile and fixed wireless transmission solutions is the right one to follow; and secondly, that management is executing on its strategy to make this vision
a reality. With the addition of ProTelevision Technologies, sufficient funds available to finance further research and development in the wireless area and a
dedicated and experienced staff of 150 people, including more than 80 engineers, UBS is firmly on the right track towards the realization of its objective. We fully
expect our rate of growth to accelerate over the balance of this fiscal year."
Based on UBS' engineering expertise in the area of OFDM technology and worldwide demand for fixed and mobile high-speed wireless solutions, management
intends to focus the company's efforts and direction on the following products:
(1) fixed and mobile wireless infrastructure, including an OFDM modem for
bi-directional, high-speed Internet/data transmission;
(2) wireless MMDS (wireless cable) infrastructure to provide wireless
video broadcast, including interactive services, such as video on
demand; and
(3) mobile broadcasting solution to service the digital television and
digital radio markets.
"Full design, development and implementation of these products will enable UBS to provide complete end-to-end solutions to a market that, according to the
Strategis Group is expected to reach US$16.3 billion by 2004," said Alex Dolgonos, President and CEO of UBS. "This strategy will allow us to pursue contracts
similar in size and greater than the HNS contract that we won earlier this year.
About Unique Broadband Systems, Inc.
Unique Broadband Systems, Inc. (UBS) is recognized worldwide as a leader in the design, development and manufacture of high-speed mobile and fixed wireless
transmission solutions, including systems based on OFDM technology. UBS focuses on high-speed mobile solutions (DAB, SDARS and High-Speed Mobile
Multimedia) and fixed wireless multimedia (MMDS, MVDS and LMDS). In February 2000, UBS was awarded the industry's single largest OFDM contract to date to
develop and supply a terrestrial network based on COFDM technology. In September 2000, UBS acquired ProTelevision Technologies A/S based in Brondby,
Denmark (PTV). Through PTV, UBS is now a leading provider of studio and transmission products to the television and broadcast industries, specializing in DVB-T
transmission based on OFDM technology. A commitment to research and innovation has enabled UBS to expand its position in the growing markets of digital radio,
satellite digital radio, digital video broadcast and the transmission of wireless mobile and fixed multimedia. The company's extensive product line is combined with
system design, installation, maintenance and technical support to provide customers with total end-to-end system solutions. UBS has offices in the United States,
Canada, Russia, Singapore, the UK, France, Italy, Germany and Denmark.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - prepared by management)
Three months ended
Aug. 31, 2000 Aug 31, 1999
---------------------------------
Sales $3,731,633 $836,745
Cost of sales 1,126,353 291,754
---------------------------------
Gross Profit 2,605,280 544,991
---------------------------------
Expenses
Research & Development 517,348 742,670
Selling and administrative 1,403,689 479,917
Amortization 252,759 94,585
---------------------------------
2,173,796 1,317,172
---------------------------------
Net earnings (loss) for the period $431,484 ($772,181)
Earnings (loss) per share $0.0045 ($0.0094)
---------------------------------
Weighted average number of shares 96,734,114 82,145,612
---------------------------------
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited - prepared by management)
Aug. 31, 2000 Aug. 31, 1999
---------------------------------
Assets
Current assets
Cash and short term investments $33,457,785 $756,285
Accounts receivable 5,064,854 985,181
Inventory 3,862,712 1,843,630
Deferred contract costs 2,421,573 -
Prepaid expenses 2,349,161 78,530
Shareholder loan 1,139,234 1,051,222
---------------------------------
48,295,319 4,714,848
Capital assets (net) 2,986,313 1,515,478
Investment tax credits 2,427,763 2,925,706
---------------------------------
---------------------------------
$53,709,395 $9,156,032
---------------------------------
---------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $2,524,675 $825,724
Customer deposits 1,415,022 205,556
Obligations under capital leases 223,647 539,278
Long-term debt 402,777 1,273,602
---------------------------------
4,566,121 2,844,160
Shareholders' equity 49,143,274 6,311,872
---------------------------------
---------------------------------
$53,709,395 $9,156,032
---------------------------------
---------------------------------
Outstanding share data:
Common Shares 98,826,980 84,764,557
Common Share Options 10,469,708 5,065,580
Common Share Warrants 2,660,192 5,425,500
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - prepared by management)
Three months ended
Aug. 31, 2000 Aug. 31, 1999
---------------------------------
Cash flows from operating activities
(loss) for the period $431,484 ($772,181)
Adjustments for amortization 252,759 94,585
---------------------------------
Funds provided by (used in) operations 684,243 (677,596)
Changes in non-cash working capital (3,374,634) (1,110,902)
---------------------------------
(2,690,391) (1,788,498)
---------------------------------
Cash flows from financing activities
Increase in shareholder loans (6,616) (694,168)
Repayment of capital leases (77,991) (80,165)
Repayment of long-term borrowings (41,667) (49,831)
Proceeds from issuance of share
capital (net) - 1,773,422
---------------------------------
(126,274) 949,258
---------------------------------
Cash flows from investing activities
Purchase of capital assets (232,510) (47,986)
Decrease in cash and cash equivalents (3,049,175) (887,226)
Cash and cash equivalents at beginning
of period 36,506,960 1,643,511
---------------------------------
Cash and cash equivalents at end
of period $33,457,785 $756,285
-------------------------------------------------------------------------
For more information on UBS, its products or investor relations, visit
www.uniquesys.com.
For further information
Company contact: Stacy Carson, UBS, (905) 669-8533, investorrelations@uniquesys.com |
