Anyone still in this one? Quarterly results a disappointment. Book value is $2.30 per share, now trading at $2.75...
NovAtel Reports Results for the Third Quarter 2000
08:32 EDT Tuesday, October 24, 2000
NovAtel Inc. (NASDAQ: NGPS), a global positioning manufacturer, today announced results for the third quarter ended
September 30, 2000.
Revenues in the third quarter 2000 were CDN $6.3 million (US $4.2 million) compared to CDN $7.5 million (US $4.9
million) in the same period a year ago and CDN $6.5 million (US $4.3 million) in the second quarter 2000.
The Company is reporting a net loss from continuing operations for the third quarter 2000 of CDN $506,000 (US
$333,000) or CDN $0.07 (US $0.04) per share compared with net income from continuing operations of CDN $79,000
(US $52,000) or CDN $0.01 (US $0.01) per share in the same period a year ago.
"We are pleased with the performance of our Special Apps sector and our continued participation in Wide Area
Augmentation Systems," commented Doug Reid, President and Chief Executive Officer.
Revenues from the Special Apps sector grew 9% from the third quarter 1999 to the third quarter 2000 and 13% from the
second quarter 2000 to the third quarter 2000. The level of interest in the GPS 600 antenna and the OEM 4 has been very
encouraging.
The Aerospace and Defense sector revenues decreased 36% from the third quarter 1999 to third quarter 2000 and were
up 26% from second quarter 2000 to third quarter 2000. The balance of the WAAS receivers to China are due to be
delivered in the fourth quarter. Added Mr. Reid, "We recently signed the full contract for the development and delivery of
WAAS receivers for the European wide area augmentation system known as EGNOS."
Geomatics revenues decreased 9% from the third quarter 1999 to the third quarter 2000 and decreased 32% from the
second quarter 2000 to the third quarter 2000. "We are disappointed by the poor performance of our Geomatics sector in
the third quarter, however we believe that a number of products, which were recently introduced by our partner Sokkia at
the Intergeo conference in Berlin, will set the stage for improved results in the fourth quarter and beyond," continued Mr.
Reid.
The sector numbers previously reported in the third quarter 1999 have been revised to reflect a more accurate grouping of
customers as reflected in the Company's 20F filing for the year ended December 31, 1999 and subsequent quarterly 6K
filings.
NovAtel Inc. designs, markets and supports a broad range of products that determine precise geographic locations using
the Global Positioning System ("GPS"). NovAtel's GPS products are used principally for applications in high-end markets
such as surveying, geographic information systems, aviation, marine, mining and machine control and agriculture. For further
information please visit our website at novatel.ca.
Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of the Company, or developments in the
Company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, but are not limited to, operating results of affiliates and subsidiaries
including Point, Inc., establishing and maintaining effective distribution channels, certification and market acceptance of the
Company's new products, impact and timing of large orders, pricing pressures in the market and other competitive factors
and maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to
maintain supply of products from subcontract manufacturers and the supply of components to build products, the impact of
industry consolidations which has made certain competitors larger and stronger, together with the other risks and
uncertainties described in public filings.
CONTACTS:
Doug Reid
(403) 295-4587
Werner Gartner
(403) 295-4550
NOVATEL INC.
CONSOLIDATED BALANCE SHEETS
(in Canadian $ thousands)
September 30, December 31,
2000 1999
------------- ------------
ASSETS
Current assets:
Cash and short term investments $7,274 $ 8,280
Accounts receivable 4,029 6,110
Related party receivables 498 1,340
Related party note receivable 1,029 -
Inventories 5,196 3,684
Prepaid expenses and deposits 437 292
------ ------
Total current assets 18,463 19,706
Capital assets 3,740 4,648
Intangible assets 2,862 3,047
Deferred development costs 2,445 1,803
------- -------
Total assets $27,510 $29,204
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $3,854 $ 4,851
Related party payables 360 278
Note payable 1,029 -
Provision for future warranty costs 242 246
Capital lease obligation - current portion 279 374
----- -------
Total current liabilities 5,764 5,749
Deferred gain on sale/leaseback of capital
assets 973 1,089
Capital lease obligation - long-term portion 366 549
----- -----
Total liabilities 7,103 7,387
----- -----
Non-controlling interest 78 65
Shareholders' equity:
Capital stock 35,613 35,602
Deficit (15,284) (13,850)
-------- --------
Total shareholders' equity 20,329 21,752
-------- --------
Total liabilities and shareholders'
equity $27,510 $29,204
-------- --------
NOVATEL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Canadian $ thousands, except per share data)
Three months ended Nine months ended
-------------------- --------------------
Sept. 30, Oct. 2, Sept. 30, Oct. 2,
2000 1999 2000 1999
-------------------- --------------------
Revenues $6,314 $7,510 $ 19,077 $ 16,087
Cost of sales 2,583 3,756 8,231 8,098
----- ----- ----- -----
Gross profit 3,731 3,754 10,846 7,989
----- ----- ------ -----
Operating expenses:
Research and
development 2,122 1,860 6,175 5,425
Selling and marketing 1,350 1,014 3,600 2,952
General and
administration 844 808 2,780 2,054
----- ----- ------ ------
Total operating
expenses 4,316 3,682 12,555 10,431
----- ----- ------ ------
Operating income (loss)(585) 72 (1,709) (2,442)
Interest income 98 88 241 287
Other income (expense) (3) (60) (2) (147)
----- ----- ------ ------
Income (loss) from
continuing operations
before income taxes (490) 100 (1,470) (2,302)
Provision for
(recovery of) income
taxes 16 21 (8) 63
----- ---- ----- ------
Net income (loss) from
continuing operations (506) 79 (1,462) (2,365)
Net income from
discontinued operations 15 - 28 -
------ --- --------- ---------
Net income (loss) $(491) $79 $ (1,434) $ (2,365)
------ --- --------- ---------
Net loss per share (basic):
Continuing
operations $(0.07) $0.01 $ (0.19) $ (0.31)
Discontinued
operations 0.01 0.00 0.00 0.00
------- ----- -------- --------
Net loss per share $(0.06) $0.01 $ (0.19) $ (0.31)
------- ----- -------- --------
Weighted average
shares outstanding
(basic) 7,676 7,674 7,675 7,674
------- ----- -------- --------
Net loss per share
(fully diluted):
Continuing
operations $(0.07) $0.01 $ (0.19) $ (0.31)
Discontinued
operations 0.01 0.00 0.00 0.00
------- ----- -------- --------
Net loss per share $(0.06) $0.01 $ (0.19) $ (0.31)
------- ----- -------- --------
Weighted average
shares outstanding
(fully diluted) 8,691 8,649 8,701 8,604
------- ----- -------- -------- |
