Another stock for the portfolio IMHO.
Thursday December 21, 2:57 pm Eastern Time
Press Release
SOURCE: RDM Corporation
RDM Announces Year-End Financial Results
CDNX: RC
WATERLOO, ON, Dec. 21 /CNW/ - RDM Corporation (CDNX: RC - news), a leading developer of specialized software and hardware products for Internet electronic commerce and payment processing, today announced year-end financial results for the year ended September 30, 2000. RDM is pleased to report revenue growth in fiscal 2000 and a very strong financial position at year end.
For the 12-month period ended September 30, 2000, revenue increased by 8.6% to $5.1 million from $4.7 million in the corresponding period of 1999. Check quality control products continued to be a major contributor to revenue, while new payment processing products, the EC5000i and its accompanying suite of software services began to contribute to the Company's top line.
"2000 was indeed a year for renewed energy and focus within RDM as we significantly re-capitalized the Company while spinning off our eCheck business in the United States," said Michael Carr, President and CEO of RDM. "These significant steps taken during 2000 will provide tremendous focus to both of our businesses while we continue to explore new and exciting growth opportunities in the year ahead."
As a result of aggressive commercialization efforts, a significant ramp- up of sales and marketing activities, and costs associated with the creation of XIGN in the United States, the Company's operating expenses increased during the twelve month period from $4.2 million for the year ended September 30, 1999 to $5.5 million in the current year. R&D expenses fell by 5.4% over last year, while sales & marketing expenses climbed 19.6%. General & administrative expenses rose 138.2%. The significant increase in General and Administrative expenses largely results from costs associated with the creation of XIGN and recruitment of Silicon-Valley technology leaders to senior management positions at the Company.
Working capital at September 30, 2000 was $19.7 million, up from $1.4 million at September 30, 1999. Included in this working capital position is a strong cash balance of $19.5 million at the end of fiscal 2000. This strong financial position is a direct result of a $15 million equity offering closed during the fiscal year. The offering was the most significant financing of its kind in the Company's history.
During fiscal 2000, RDM continued to develop new products to support its existing payment technologies. RDM's Payment Archive Service was developed and successfully launched to offer payment processors web-based image archival and retrieval of checks and bill payment stubs. These payment processors who are currently using RDM point-of-sale scanners can now quickly and effectively retrieve information for often-needed reference. RDM is providing the service on a per-transaction fee basis.
Highlights of fiscal 2000 included:
- Raised $15 million in an oversubscribed special warrant financing.
- Launched Payment Archive Service and entered into transaction-based
sales agreements with several US-based firms, including Fidelity
Express of Texas and Global eTelecom of Florida.
- The addition to the newly formed CDNX technology index. As a sub-index
of the CDNX, the technology sector index encompasses 31 companies that
make up the top 80% of the technology sector by market capitalization.
- Launched Xign Inc. as a US-based subsidiary to focus exclusively on
the creation, development and commercialization of technologies that
allow users to both send and receive payments over the Internet.
- Xign completed a US $14.3 million financing which attracted senior US-
based venture capital firms as well as Charles R. Schwab personally.
About RDM
RDM develops and provides electronic check conversion systems and web- based payment archive services to retailers, banks and government agencies, as well as print quality control technologies to banks, printers and payment processors in over 35 countries. In June of 2000, RDM established Xign Corporation as a privately held subsidiary with headquarters in Pleasanton, California. RDM's complete financial statements can be viewed by visiting the Company's website, www.rdmcorp.com. RDM is a public company listed under the symbol "RC" on the Canadian Venture Exchange.
About Xign
Xign, Inc. was created by RDM to focus on the development and marketing of electronic payment methods primarily for B2B transactions. Today Xign Corp. is a leading developer of electronic payment solutions incorporating digitally signed electronic check technology.
The Xign eCheck is the first business-to-business payment instrument offering a secure, reliable and cost effective way to settle payments via electronic mail. Xign's technology is based on concepts pioneered through the Electronic Check Project of the Financial Services Technology Consortium - a four-year joint research project involving leading banks, technology partners and initial users.
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
<<
RDM CORPORATION
Consolidated Balance Sheets
September 30, 2000 and 1999
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2000 1999
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Assets
Current assets:
Cash and short-term investments $ 19,564,959 $ 986,658
Accounts receivable 1,078,397 709,718
Inventories (note 2) 1,137,672 761,807
Prepaid expenses 66,777 25,639
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21,847,805 2,483,822
Capital assets (note 3) 955,267 769,537
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$ 22,803,072 $ 3,253,359
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,312,135 $ 759,157
Deferred revenue 893,247 159,067
Current portion of long-term debt (note 4) 13,200 82,878
Current portion of obligations under
capital leases 45,820 46,812
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2,264,402 1,047,914
Long-term debt (note 4) - 13,200
Obligations under capital leases 10,430 56,250
Non-controlling interest (note 5) 3,993,742 -
Shareholders' equity:
Share capital (note 6) 10,615,925 7,355,106
Special warrants (note 6(b)) 13,668,000 136,950
Accumulated deficit (7,805,560) (5,356,061)
Cumulative translation adjustment 56,133 -
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16,534,498 2,135,995
Commitment (note 11)
Contingency (note 12)
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$ 22,803,072 $ 3,253,359
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See notes to consolidated financial statements
RDM CORPORATION
Consolidated Statements of Operations
Years ended September 30, 2000 and 1999
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2000 1999
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Revenues $ 5,093,729 $ 4,688,724
Cost of revenues 1,952,008 1,240,535
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Gross profit 3,141,721 3,448,189
Expenses:
Research and development 1,983,087 2,097,151
Sales and marketing 1,402,469 1,172,209
General and administrative 1,924,369 765,764
Interest on long-term debt and capital
leases 27,291 30,798
Amortization 279,635 131,662
Interest income (25,631) -
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5,591,220 4,197,584
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Loss before income taxes (2,449,499) (749,395)
Income taxes (note 7) - -
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Loss from continuing operations (2,449,499) (749,395)
Settlement of liabilities of discontinued
operations - 537,911
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Loss for the year (2,449,499) (211,484)
Accumulated deficit, beginning of year (5,356,061) (5,144,577)
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Accumulated deficit, end of year $ (7,805,560) $ (5,356,061)
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Loss per share from continuing operations
(note 8) $ (.19) $ (.07)
Earnings per share from discontinued
operations (note 8) - .05
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$ (.19) $ (.02)
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See notes to consolidated financial statements.
RDM CORPORATION
Consolidated Statements of Cash Flow
Years ended September 30, 2000 and 1999
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2000 1999
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Cash provided by (used in):
Operating activities:
Loss from continuing operations $ (2,449,499) $ (749,395)
Items not involving cash:
Amortization 279,635 131,662
Other 56,133 50,620
Change in non-cash operating
working capital 501,476 (126,748)
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(1,612,255) (693,861)
Financing activities:
Issuance of share capital and special
warrants 16,791,869 1,277,399
Issuance of preferred shares of
subsidiary 3,993,742 -
Share capital repurchased - (14,877)
Repayment of capital lease obligations (46,812) (12,923)
Repayment of long-term debt (82,878) (119,260)
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20,655,921 1,130,339
Investing activities:
Purchase of capital assets (465,365) (467,271)
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Increase (decrease) in cash 18,578,301 (30,793)
Cash used in settlement of liabilities of
discontinued operations - (28,000)
Cash and short-term investments,
beginning of year 986,658 1,045,451
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Cash and short-term investments,
end of year $ 19,564,959 $ 986,658
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Supplemental information:
Cash paid for:
Interest $ 35,655 $ 30,798
Income taxes - -
Cash and short-term investments
consists of:
Cash 5,664,959 986,658
Short-term investments 13,900,000 -
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See notes to consolidated financial statements.
>>
For further information
Jay Hussey, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext. 225 phone, (416) 815-0080 fax, jhussey@equicomgroup.com, www.investorlook.com
Michael Carr, President & CEO, RDM Corporation, (519) 746-8483 phone, (519) 746-3317 fax, mcarr@rdmcorp.com, www.rdmcorp.com |
