Q2 results
SEPTEMBER 5, 1997
Microstar Software Ltd. Announces Second Quarter Results
OTTAWA, ONTARIO--Microstar Software Ltd. today reported
consolidated net earnings for the second quarter of fiscal 1998
ended July 31, 1997 of $264,400 compared to a net loss of $507,800
for the second quarter of fiscal 1997 representing earnings per
share of $.08 compared to a per share loss of $.16 for the same
period last year. Revenues for the quarter increased $527,100 to
$1,672,900 compared to $1,145,800 for the same period last year,
representing an increase of 46 percent.
Net earnings for the six months ended July 31, 1997 were $556,100
compared to a net loss of $858,500 for the six months ended July
31, 1996. Earnings per share for the six months were $.18 compared
to a per share loss of $.28 for the same period last year. Year to
date revenues were $3,522,500, an increase of $1,491,500 or 73
percent over revenues of $2,031,000 for the same period last year.
"Second quarter results reflect the continuing demand for our
document management solutions. We are expanding our sales reach in
the US in order to address potential future fluctuations resulting
from long sales cycles," said Peter Jordan, Microstar's Chairman &
CEO.
"We are also closely tracking XML as it develops into a new and
powerful language for the internet. XML is a subset of SGML, one
of our core competencies. We are, therefore, well positioned to
take advantage of the growing demand for XML solutions," Jordan
said.
Microstar provides services and technology to the growing
information publishing market. The company specializes in systems
using the international document markup language, SGML and the new
Web standard, XML. Microstar Software Ltd. is listed on the
Toronto Stock Exchange (MSS).
A summary of results follows:
/T/
Consolidated Balance Sheet(in thousands)
(unaudited)
As at
July 31 Jan 31
1997 1997
ASSETS
Current Assets
Cash and temporary investments $ 2,094.8 $ 1,731.1
Accounts receivable 1,726.4 1,310.3
Unbilled receivables 3.6 26.1
Prepaid Expenses 87.0 103.7
------------ -----------
3,911.8 3,171.2
Recoverable investment tax credits 355.1 355.1
Capital assets 567.8 634.6
------------ -----------
$ 4,834.7 $ 4,160.9
------------ -----------
------------ -----------
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued
liabilities $ 587.7 $ 467.2
Deferred revenue 228.0 230.8
------------ -----------
815.7 698.0
------------ -----------
Shareholders' equity
Share capital 5,873.0 5,873.0
Retained earnings (deficit) (1,854.0) (2,410.1)
------------ -----------
4,019.0 3,462.9
------------ -----------
$ 4,834.7 $ 4,160.9
------------ -----------
------------ -----------
Consolidated Statement of Earnings and Retained Earnings
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
July 31 July 31
1997 1996 1997 1996
Revenues $ 1,672.9 $ 1,145.8 $ 3,522.5 $ 2,031.0
---------- ---------- ---------- ---------
Operating expenses
Selling, general and
administrative 1,136.3 1,078.7 2,165.9 1,753.4
Research and
development 228.8 528.6 503.8 1,061.0
Material costs 13.1 17.6 221.4 28.6
Amortization of capital
assets 45.2 64.0 100.1 130.3
---------- ---------- --------- ----------
Total operating
expenses 1,423.4 1,688.8 2,991.2 2,973.3
---------- ---------- --------- ----------
Earnings (loss) from
operations 249.5 (543.1) 531.3 (942.3)
Interest 14.9 35.3 24.8 83.8
---------- ---------- --------- ----------
Earnings (loss) before
taxes 264.4 (507.8) 556.1 (858.5)
---------- ---------- --------- ----------
Income tax expense 111.0 - 233.5 -
Utilization of tax loss
carryforwards (111.0) - (233.5) -
---------- ---------- --------- ---------
Net earnings (loss) 264.4 (507.8) 556.1 (858.5)
Opening retained earnings
(deficit) (2,118.4) (188.5) (2,410.1) 162.2
---------- ---------- --------- ---------
Closing deficit $(1,854.0) $ (696.3) $(1,854.0) $ (696.3)
---------- ---------- --------- ---------
---------- ---------- --------- ---------
Basic earnings (loss) per
share $ 0.08 $ (0.16) $ 0.18 $ (0.28)
Common shares
outstanding 3,096.8 3,092.4 3,096.8 3,092.4
disclaimer
FOR FURTHER INFORMATION PLEASE CONTACT:
Microstar Software Limited
3775 Richmond Rd.
Nepean (Ontario), Canada, K2H 5B7
(613) 596-2233
(613) 596-5934 (FAX)
There is no material dilutive effect on the earnings per share on
the exercise of the options.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: MICROSTAR SOFTWARE LIMITED
TSE SYMBOL: MSS |
