Optimal Robotics Announces U.S. Dollar as Its Functional Currency
Second Quarter 2000 Financial Results Increased by $.04 Per Share to Reflect Unrecognized Foreign Exchange Gains
MONTREAL--(BUSINESS WIRE)--Oct. 24, 2000-- Optimal Robotics Corp. (NASDAQ: OPMR - news), North America's leading provider of self-checkout systems to retailers, today announced that, effective July 1, 2000, it has adopted the U.S. dollar as its functional currency. All references are to U.S. dollars.
The Company has historically reported its financial results in U.S. dollars and will continue to do so. The adoption of the U.S. dollar as its functional currency reflects the fact that the Company's business activities are conducted primarily in the United States. Almost all of the Company's sales are made in the United States and Optimal has a significant number of its facilities and support activities based in the U.S.
As a result of Optimal's change to the U.S. dollar as its functional currency, the Company believes that, based on its current business operations, it will no longer be subject to foreign currency fluctuations to any material extent.
Optimal also announced that its second quarter 2000 financial results were higher than previously reported solely as a result of previously unrecognized foreign exchange gains. These gains totaled $613,463 on an after-tax basis, increasing the Company's previously reported earnings per share for the second quarter to $.15 per share from $.11 per share. These gains reflect the strengthening of the U.S. dollar against the Canadian dollar and result from the Company's historical policy of maintaining its cash and cash equivalents in U.S. dollar, short-term, investment grade, interest-bearing securities.
Optimal Robotics Corp. is the leading provider of self-checkout systems to retailers in North America. The Company's principal product is U-Scan®, an automated self-checkout system which enables shoppers to scan, bag and pay for their purchases with limited or no assistance from store personnel. U-Scan®, which the Company believes will process over 150 million shopper transactions in 2000, is designed to reduce retailer checkout costs and increase shoppers' convenience.
This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include price and product competition, dependence on new product development, reliance on major customers, customer demand for our product and services, control of costs and expenses, domestic and international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Optimal with the Securities and Exchange Commission. Optimal disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Restated consolidated statement of operations and consolidated balance sheet for the second quarter of 2000 follow.
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