Here are some numbers from the company's report for the year ended
June 30, 1996 (sorry I have it on paper so cannot give URL and won't
try to reproduce it here. Anyone interested can order information
from the company).
Total assets : 20,772,472
Net assets : 17,498,370
Total shareholders' equity : 17,498,370
Consolidated results :
Operating profit before abnormal items : 4,529,952
Operating loss after abnormal items and income tax : (30,871,623)
Earnings per share, diluted, before abnormal items : 1.62 c
Earnings per share, diluted, after abnormal items : (7.49) c
In reality, those numbers have little to do with the current state
of affairs. Since 1983 and until 1996, the company purpose was to
build a commercially available neurocomputer. They spent money on
R&D, and the only source of income was, as far as I know, selling
technology byproducts (home automation, voice messaging, etc.).
They achieved their goal and launched first core products in
December, 1996. Now the company generates revenues by selling
products, licensing the technology, entering joint ventures, etc.
The potential for profits is HUGE - this is the first (and so far
the only) company to offer the neural network technology, which
proved to be extremely useful and effective in many scientific
applications, on commercial basis. The question is whether they can
market it - the industry has a huge momentum. I was told by the
company's investor relations that the report
for the year ended June 30, 1997, will be released within the next
2-3 weeks. Will see what they have there ... The report will
certainly include lots of "abnormal items" as well - they will have
to pay startup costs for their US operations and company expansion.
But if the revenue numbers are good, proving that the company can
indeed sell its technology, the stock price can shoot through the
ceiling. Not sure it will stay there though - given the nature of
the company and lack of up-to-date financial information, the stock
will remain extremely volatile.
Based on the information I have (which is far from being complete,
unfortunately), I expect their annual report to be very good -
will wait and see... The company also plans several news releases
for the next couple months. |
