Q3 report
FOR : Telepanel Systems Inc.
TSE SYMBOL: TLS
OTC Bulletin Board SYMBOL: TLSXF
December 11, 2000
Telepanel Reports Third Quarter Results Ending October 31, 2000
TORONTO, CANADA--
IBM Extends Telepanel's Product Offering to its Business Partners Channel
Telepanel Systems Inc. (TSE:TLS and OTCBB:TLSXF) today announced its results for the third quarter ended October 31,
2000 (all results are reported in Canadian dollars).
For the nine months ended October 31, 2000, revenue was $2,376,285, as compared to $2,204,634 over the same period last
year. The level of revenue was as anticipated as Telepanel continues the transition to support IBM in selling the product on an
international basis, while continuing the support and expansion of other business partner relationships.
The loss for the nine month period was $4,616,116 ($.23 per share on 19,653,316 weighted average shares outstanding) as
compared to a loss of $2,993,842 ($0.16 per share on 18,466,456 weighted average shares) for the corresponding period in
1999. The increase in selling, general and administration expenses reflects the operations of Telepanel's wholly owned
European subsidiary that assists IBM in further opening the European market to their ESL product. These expenses were not
included in last period's comparative results. As well, an increase in non-cash interest charges and additional investment of
Telepanel's resources on research and development to maintain their technical leadership are the contributors to the higher
loss.
"We continue to receive a great deal of interest from major retailers in both North America and Europe", commented Garry
Wallace, President and CEO of Telepanel. "The company is well positioned to capitalize on potential large orders as they occur.
In addition, our efforts to obtain financing for the company are ongoing. We anticipate accomplishing this objective in the New
Year to meet our requirements for the coming year."
In additional news, Telepanel announced that, during October, IBM broadened sales coverage for Telepanel's ESLs through its
retail sales channels in Europe. Telepanel's product is now offered through IBM's Business Partners in addition to the IBM direct
sales force. IBM recently received its first sales through this Business Partner channel, initial orders for ESL installations at two
Leclerc supermarkets in France in conjunction with Symag, IBM's Business Partner. Leclerc represents over 550 stores
throughout Europe.
Mr. Wallace further commented, "As the new President and CEO of Telepanel Systems, during the last 100 days I have met with
senior executives at IBM and major participants in the industry. I am excited about the potential for large ESL rollouts in this
emerging marketplace. The reception and the genuine interest that retailers have expressed in our technology are encouraging.
We will continue to explore and enhance relationships with other technical market leaders to accelerate ESL rollouts."
Telepanel is the leader in developing wireless electronic shelf labeling systems for retail stores. Telepanel ESLs are placed on
the edge of store shelves to show a product's price and other information. Prices are changed by a radio communications link
from the store's cash registers, to provide accurate and up-to-date pricing.
Telepanel's systems are integrated with the leading 2.4 GHz RF LANs, such as Symbol's Spectrum 24 product line, to allow
retailers to take advantage of their investment in IEEE standard in-store RF networks and extend their use to include electronic
shelf labels
Approximately 2,000,000 Telepanel wireless ESLs are presently installed and operating throughout the United States, Canada,
and Europe. Telepanel installations are at such premier supermarket chains as Adam's Super Food Stores, A & P, Stop &
Shop, Loblaws, Big Y, Reasor's, Doll's, Brown's, Stew Leonard's, Shaw's, Grand Union, Wakefern, Berks, Ellington, Port
Richmond, Champion, Leclerc, Intermarche, SPAR, and Super U, and at Universal Studios, Hollywood.
This press release includes forward looking statements as defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements do not constitute historical facts and involve risks and uncertainties, including, but not limited to, the
possibility that adverse economic or other factors may cause actual results to be materially different than current estimates and
projections. Additional detailed information concerning a number of factors that could cause actual results to differ materially
from the information contained in this press release is contained in the reports and other documents of Telepanel filed with the
Securities and Exchange Commission from time to time.
/T/
Telepanel Systems Inc.
Statement of Operations Summary
-------------------------------
(Canadian Dollars)
(Unaudited)
Nine Months Ended October 31
2000 1999
---- ----
Revenue $ 2,376,285 $ 2,204,634
Loss 4,616,116 2,993,842
Loss per share .23 .16
Avg. shares o/s 19,653,316 18,466,456
Telepanel Systems Inc.
Statement of Operations
-----------------------
(Canadian Dollars)
(Unaudited)
Nine Months Ended October 31
2000 1999
---- ----
Product sales $ 2,376,285 $ 2,204,634
Manufacturing 1,753,657 1,396,143
S,G,& A 2,880,532 2,359,214
R & D 827,046 600,801
Amortization of debenture discount 244,440 0
Depreciation of capital assets 64,197 69,606
Debenture interest 755,805 527,269
Interest 534,325 246,879
------------ ------------
$ 7,060,002 $ 5,199,912
------------ ------------
Loss from operations before
the undernoted items (4,683,717) (2,995,278)
Interest & other income 67,601 1,436
------------ ------------
Loss $(4,616,116) $(2,993,842)
Loss per share .23 .16
Avg. shares o/s 19,653,316 18,466,456
/T/
- 30 -
FOR FURTHER INFORMATION PLEASE CONTACT :
Telepanel Systems Inc.
In Canada -
Garry Wallace
President & CEO
(905)-477-7877
or
Straus Communications
In the US-
Irving Straus
(212)-768-2477
or
Mallory Factor Inc.
Mallory Factor
(212)-350-0000
Internet: www.telepanelsystems.com |
