NHC COMMUNICATIONS INC. ANNOUNCES FOURTH QUARTER AND TWELVE-MONTH
RESULTS FOR FISCAL 1997
MONTREAL, (Canada), Dec. 3rd /CNW/ - NHC Communications Inc. (NHC)
announced today results for its fourth quarter and fiscal year ended August 1,
1997. For the fourth quarter, revenues increased to $4,638,000 compared to
$3,729,000 in the corresponding period of 1996. For the full year, revenues
were $18,297,000 in 1997 compared to $13,546,000 in 1996, an increase of 35%.
In both periods, the higher revenues were attributable to the acquisition of
The Fiber Company, with its rapid growth, and higher Switching sales.
The Company reported an operating loss from continuing operations of
$2,713,000 in the fourth quarter of 1997, compared to operating income of
$144,000 in the similar period last year. During the fourth quarter, NHC
discontinued research and development, manufacturing and marketing activities
related to network and cabling management software commercialized under the
WireMan brand, resulting in a loss from discontinued operations of $11,467,000
reflecting primarily the write-down of related net assets. Therefore, the loss
for the fourth quarter was $14,294,000 compared to a loss of $2,808,000 in the
corresponding fiscal 1996 period. As a result of this write-down, the loss for
fiscal 1997 was $ 15,080,000 compared to a loss of $1,893,000 for 1996.
''The fiscal 1997 statement of income reflects the increased sales,
marketing and research and development efforts that supported the
implementation of our strategies,'' said Sylvain Abitbol, President and chief
Executive Officer. ''These investments were necessary to penetrate new markets
and position our products in key accounts''.
''I am pleased to note that through our efforts in fiscal 1997, which
built on our accomplishments of 1996, we validated our products in
rapidly-growing markets. In so doing, these products made the critical
transition from initial acceptance by early adopters into the mainstream
market, opening the doors to sales successes in fiscal 1998 and beyond,''
concluded Mr. Abitbol.
NHC Communications Inc. (TSE sym: NHC) specializes in developing products
that increase the competitive edge of its customers by applying innovative
technology to the delivery of high-speed mixed media networks. NHC is
committed to its customers by delivering superior solutions for physical layer
network infrastructures.
NHC sells through leading resellers supported by sales locations in
Atlanta, Boston, Chigago, Dallas, New York, Stockton (CA) and Montreal
(Canada). Its European subsidiaries are in Paris (France), York (U.K.), and
their sales offices in Haarleem (The Netherlands) and Singapore.
NHC may be contacted through its web site: www.nhc.com
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NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
for the Three-month period ended August 1, 1997
(in thousands of Canadian dollars, except per share amounts)
Fourth Quarter 1997 Fourth Quarter 1996
-------------------------------------------------------------------------
Revenue $4,638 $3,729
Gross profit $ 713 $1,736
Operating (loss) income
from continuing operations $(2,713) $144
Loss from continuing operations $(2,827) $(2,765)
Loss(x) $(14,294) $(2,808)
Loss from continuing operations
per share $(0.23) $(0.31)
Loss per share(x) $(1.15) $(0.31)
Shares used in the calculation of
the basic loss per
share 12,454,200 8,986,665
(x) The net loss of the fourth quarter of fiscal 1997 includes a loss
from discontinued activities of the Software line of business of $11,467,600
or $0.92 loss per share (1996: $43,300 or $0.00 loss per share). Furthermore,
the net loss of the fourth quarter of fiscal 1996 includes the write-off of an
in-progress technology related to The Fiber Company Limited acquisition of
$2,860,500 or $0.32 basic net income per share.
NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
for the Twelve-month period ended August 1, 1997
(in thousands of Canadian dollars, except per share amounts)
Twelve Months 1997 Twelve Months 1996
-------------------------------------------------------------------------
Revenue $18,297 $13,546
Gross profit $6,756 $5,987
Operating (loss) income
from continuing operations $(2,891) $175
Loss from continuing operations(x) $(3,398) $(2,716)
Loss $(15,080) $(1,893)
Loss from continuing operations
per share $(0.27) $(0.30)
Loss per share(x) $(1.21) $(0.21)
Shares used in the calculation of
the basic loss
per share 12,454,200 8,986,665
(x) The net loss of fiscal 1997 includes a loss from discontinued
activities of the Software line of business of $11,683,000 or $0.94 loss per
share (1996: income from discontinued activities of $822,900 or $0.09 net
income per share). Furthermore, the net loss of fiscal 1996 includes the
write-off of an in-progress technology related to The Fiber Company Limited
acquisition of $2,860,500 or $0.32 basic net income per share.
>>
NHC may be contacted through its web site: www.nhc.com
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For further information: Sylvain Abitbol, President, C.E.O., NHC Communications Inc., 1-800-361-1965,
Internet: pr@nhc.com, Web Site: www.nhc.com, or Sylvain Brossard, CA, V.P. Finance and Corporate
Controller or Celeste S. Poirier, NHC Communications Inc., 1-800-361-1965, Internet :
s.brossard@nhc.com |
