SERVICE SECTOR / Geophysical Micro Computer Applications International
Year Ending September Results
GMA INTERNATIONAL ANNOUNCES AUDITED FINANCIAL RESULTS
1998-02-04
CALGARY, ALBERTA
Geophysical Micro Computer Applications (International) Ltd, (GMA
International - "GMA: TSE") today announced audited results for the fiscal
year ended September 30, 1997.
Comparative financial results for 1996 and 1997 are shown below:
For the Fiscal For the Fiscal
Consolidated Balance Sheet Year Ended Year Ended
($ 000's) Sept 30/97 Sept.30/96
ASSETS
CURRENT
Cash 5,901 -
Accounts Receivable 1,155 729
Inv. Tax Credits Rec. 201 476
Prepaid Expenses 52 21
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7,309 1226
DEFERRED PROD. DEVEL. COSTS 897 877
CAPITAL ASSETS 305 272
----- -----
8511 2375
LIABILITIES
CURRENT
Bank Indebtedness - 304
Accounts Payable 537 317
Unearned Revenue 1070 849
Income Taxes Payable - -
Current Portion of Long-Term Debt - 41
----- -----
1607 1511
LONG TERM DEBT - 183
DEFERRED INCOME TAXES - 188
1607 1882
SHAREHOLDER'S EQUITY
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CAPITAL STOCK 6298 19
RETAINED EARNINGS 606 474
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6904 493
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8511 2375
Using funds raised through the Initial Public Offering (IPO) on February 25,
1997, GMA has paid out both its short and long term debt of $528 thousand
dollars and continues to be in excellent financial shape as it currently has
$ 5.9 million ($0.84/share), available for acquisition opportunities, product
development and working capital. The 1997 Investment Tax Credit of $201
thousand is the amount expected to be received by the company for its 1996
claim to Revenue Canada for SRED expenses. This is down from 1996, which
reflected both the 1995 and 1996 claim to Revenue Canada. Accounts
Receivable, Accounts Payable and Deferred Revenue are Up substantially from
September 30, 1996 as a result of increased product sales and maintenance
contracts.
For the Fiscal For the Fiscal
Consolidated Income Statement Year Ended Year Ended
$ 000's except per share amounts Sept 30/97 Sept.30/96
REVENUE 5,145 3,568
EXPENSES
Compensation/Commissions 2,427 1,797
Product Development Costs 992 521
Amortization 454 419
G&A/Other 1035 885
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TOTAL EXPENSES 4,908 3,622
Earnings ( Loss ) Before Tax 237 ( 54 )
Net Earnings ( Loss ) for the Period 132 ( 46 )
Net Earnings ( Loss ) per Common Share 0.02 N.A.
GMA International's revenue increased to $5.145 million in 1997, up 44% from
1996. Geographically, the largest sales increase came in the United States
where sales increased 55%. This had been expected as the company continues
to build market awareness in that geographic sector.
Consistent with the 44% increase in revenue, compensation, commissions and
G&A increased to $3.462 million in 1997 from $2.628 million in 1996, up 29%.
Product development costs of $992 thousand in 1997 are up $471 thousand
from 1996 as the enhanced GMA product slate, now available in both UNIX and
Windows operating systems, has been commercially available through much of
1997. Consequently, a majority of the ongoing product development costs have
been expensed, not capitalized, as in the product development phase. As a
result, deferred product development costs are down from 1996 levels by $285
thousand, while increased development staff accounts for the balance of the
difference.
Overall, the net earnings after tax for the year were $132 thousand ($0.02/
share), up from a loss of $46 thousand in 1996 as GMA has begun to reap the
benefits of three years of new product development and operating system
upgrades. Cash flow increased to $995 thousand ($0.14/share), in 1997 up from
1996 cash flow of $231 thousand ($0.03/share).
GMA International is a developer and supplier of geological, geophysical and
petrophysical computer-aided exploration (CAEX) software products. The CAEX
software allows geoscientists to interpret and synthetically model various
subsurface characteristics of the earth enabling exploration staff to reduce
non-productive drilling and thereby reduce the overall risk and cost of
hydrocarbon discovery and exploitation. |
