SIRIT Technologies Inc. Shareholders Approve Business Combination With iTech Capital Corp. And SIRIT Technologies Inc. Reports Financial Results For The Third Quarter Ended August 31, 2002
Tuesday October 29, 4:30 pm ET
TORONTO, ONTARIO--SIRIT Technologies Inc. (TSX-V: YSR - News) is pleased to announce that SIRIT shareholders voted in favour of the previously announced business combination with iTech Capital Corp. (TSX: ITE - News) at its special meeting of shareholders held on October 28, 2002. SIRIT anticipates that the business combination will be completed on or about November 1, 2002. Following the completion of the business combination, SIRIT's common shares will be de-listed from the TSX Venture Exchange.
Shareholders are reminded to deliver their SIRIT share certificates, along with a completed and duly executed Letter of Transmittal, to Pacific Corporate Trust Company so that they may receive the common shares of iTech to which they are entitled pursuant to the business combination. Shareholders whose shares are held electronically and/or registered in the name of a broker or other nominee should contact such person for assistance in exchanging their shares.
SIRIT also announces its unaudited financial results for the third quarter ended August 31, 2002.
Accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the most recent annual consolidated financial statements. Interim financial statements are normally prepared with comparative amounts for the same period end of the prior year.
A summary of unaudited financial results is presented below:
SIRIT Technologies Inc.
Consolidated Statement of Income (Loss) and Deficit
(in thousands of dollars - unaudited)
For the three For the nine
month period month period
ended August 31 ended August 31
2002 2001 2002 2001
(restated) (restated)
$ $ $ $
------------------------------------------------------------------------
Revenue 5,296 3,686 14,447 15,648
Cost of sales 3,459 2,731 8,903 10,115
------------------------------------------------------------------------
Gross Margin 1,837 955 5,544 5,533
------------------------------------------------------------------------
Expenses
Salaries and benefits 924 948 3,670 3,275
Administration and general 331 422 1,427 1,382
Sales and marketing 115 122 384 467
Research and development 123 (16) 208 188
------------------------------------------------------------------------
1,493 1,476 5,689 5,312
------------------------------------------------------------------------
Income (loss) before the
following 344 (521) (145) 221
------------------------------------------------------------------------
Amortization (251) (655) (758) (1,424)
Loss on sale of assets (1) - (39) -
Uncompleted acquisition
and related litigation costs - - - (1,492)
Litigation settlement - 18 - 7,141
Corporate finance fees - - - (1,068)
Foreign exchange loss (32) 164 (298) (11)
Interest income (expense) (100) (334) (297) (329)
Write down of acquired
technology - (1,915) - (1,915)
Write down of long term
investment - (15,038) - (15,038)
------------------------------------------------------------------------
Income (loss) before taxes (40) (18,281) (1,537) (13,915)
------------------------------------------------------------------------
Income (recovery of) taxes (1) (4,976) (84) (3,173)
------------------------------------------------------------------------
Net Income (loss) for the
period (39) (13,305) (1,453) (10,742)
------------------------------------------------------------------------
Retained earnings adjustment
re acquisitions - 5,183 - 5,183
Retained earnings (deficit),
beginning of period (23,279) 4,467 (21,865) 1,904
Retained earnings
(deficit), end of period (23,318) (3,655) (23,318) (3,655)
------------------------------------------------------------------------
------------------------------------------------------------------------
Earnings (Loss) per
common share
Basic $(0.00) $(0.39) $(0.04) $(0.31)
Fully diluted $(0.00) $(0.39) $(0.04) $(0.31)
------------------------------------------------------------------------
Shares Outstanding -
Millions (Weighted
average)
Basic 40.7 34.4 40.7 34.2
Diluted 48.0 39.1 50.4 37.8
------------------------------------------------------------------------
Total revenue in the 2002 third quarter increased by $540,000 to $5,296,000 from $4,756,000 reported in the 2002 second quarter, an increase of 11%. The results from operations for the nine months ended August 31, 2002 produced a net loss of $1,453,000 or $0.04 per share. The net loss for the quarter ended August 31, 2002 was $39,000 or $0.00 per share.
SIRIT designs, develops, manufactures and sells Radio Frequency Identification (RFID) technology. Targeted at a diverse set of markets RFID technology has become a core technology for applications including: electronic toll collection, access control, cashless payment systems, product identification, and supply chain management applications including logistics, warehousing and manufacturing, and asset management.
Copies of the Company's interim financial report for the third quarter and first nine months of fiscal year 2002, including Management's Discussion and Analysis of the statements, are available at: www.sedar.com.
SIRIT currently has 40.7 million common shares outstanding.
Forward Looking Statements
Some statements in this press release contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.
Copyright 2002 SIRIT Technologies Inc. All rights reserved.
--------------------------------------------------------------------------------
Contact:
SIRIT Technologies Inc.
Fred Veinot
Vice President, Marketing and Strategy
Phone: (905) 940-4404 x225
Fax: (905) 940-4405
mail@siritcorp.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
