NHC COMMUNICATIONS INC. ANNOUNCES FIRST QUARTER RESULTS OF FISCAL
1998
MONTREAL, Dec. 3 /CNW/ - NHC Communications Inc. (NHC) today reported
revenues of $4,003,000 for the first quarter ended October 31, 1997, compared
to $3,996,000 in the similar period last year. Sales of Fiber Optics and
Switching products were higher compared with the year-ago period, partially
offset by lower sales of Connectivity products. The loss for the first
quarter was $405,000 compared with a loss of $132,000 in the corresponding
quarter of last year.
NHC signed two important agreements in Europe during the first quarter
which should be reflected in higher sales beginning in the second quarter and
increasing in the second half of this year. NHC was awarded a two-year
contract with British Telecom Plc for the distribution of its Token Ring LAN
extension products. As well, NHC's TokenEase J-Link Fiber Extender has been
approved by Olicom, a global leader in the design and manufacture of total
networking solutions, specializing in connectivity and high-speed LANs.
''These two agreements, combined with the acceptance of our Switching and
Fiber Optics products by Network General and Ameritech, respectively, in
fiscal 1997, augur well for fiscal 1998,'' said Sylvain Abitbol, President and
Chief Executive Officer. ''We also have a number of exciting products in the
pipeline that will be launched this year, including the first Switching
applications of our high-speed Gallium Arsenide chip in the fourth quarter.''
With its SX88 matrix chip, developed through more then two years of
research and development efforts, NHC is positioned to deliver higher
bandwidth physical layer switching products permitting speeds of OC12 and
beyond. The new chip addresses a market potential which has been estimated at
US$3.5 billion, with NHC and Nortel cited by DataPro, an industry publication,
as the two key players within this arena.
Mr. Abitbol said the Company's focus in fiscal 1998 is to create sales
momentum and to begin the roll-out of new Switching and Fiber Optics products.
''We have great technology and we have demonstrated in 1996 and 1997 that our
products deliver the capabilities and functionalities that OEMs and and users
desire for their mission-critical applications,'' he noted. ''We expect to be
rewarded in 1998 with higher sales and, as the year progresses, improving
profitability.''
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, Chicago, 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.
A conference call has been scheduled for 5:00 p.m., Montreal time,
Thursday December 4th, 1997. If you would like to participate, please
call the following number 1-800-273-9672. If you are unable to
participate, an instant replay service will be offered for the succeeding
48 hours following the conference call. For the instant replay service,
please call 1-800-408-3053, passcode: 141428.
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NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
for the Three-month period ended October 31, 1997
(in thousands of Canadian dollars, except per share amounts)
First Quarter 1998 First Quarter 1997
-------------------------------------------------------------------------
Revenue $4,003 $3,996
Gross Profit $1,685 $1,812
Operating (loss) income
from continuing operations $(401) $ 29
Loss from continuing operations $(405) $(53)
Loss(x) $(405) $(132)
Loss from continuing operations per share $(0.03) $(0.00)
Loss per share(x) $(0.03) $(0.01)
Shares used in the calculation of the
basic loss per share 12,465,659 12,440,700
>>
(x) The net loss of the first quarter of fiscal 1997 includes a loss from
discontinued activities of the Software line of business of $78,900 or $0.01
loss per share.
NHC may be contacted through its web site: www.nhc.com
-30-
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; 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; web site: www.nhc.com |
