SERVICE SECTOR / Geophysical MicroComputer Applications 1st
Qtr Results
GMA INTERNATIONAL ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR
THE FIRST QUARTER ENDING DECEMBER 31, 1997
1998-02-25
CALGARY, ALBERTA
Geophysical MicroComputer Applications (International) Ltd. (GMA
International - "GMA: T") today announced unaudited results for the three
months ended December 31, 1997.
For the Three For the Three
Consolidated Balance Sheets Months Ended Months Ended
( $ 000's except per share amounts) Dec.31/97 Dec.31/96
ASSETS
CURRENT
Cash 5,612 -
Accounts receivable 1,838 1,339
Inv.tax credits rec. 201 495
Prepaid expenses 42 30
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7,693 1,864
DEFERRED PROD.DEV. COSTS 814 840
CAPITAL 324 267
OTHER
Deferred financing costs - 89
--------- -----------
8,831 3,060
LIABILITIES
CURRENT
Bank indebtedness - 451
Accounts payable 550 467
Unearned revenue 1,339 1,183
Current portion of long term debt - 46
------------ ----------
1,889 2,147
LONG TERM DEBT - 182
DEFERRED INCOME TAXES - 181
------------ ----------
1,889 2,510
SHAREHOLDER'S EQUITY
CAPITAL STOCK 6,298 19
RETAINED EARNINGS 645 531
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6,942 550
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8,831 3,060
Using funds raised through GMA's Initial Public Offering, GMA has paid out
both its short and long term debt and has $5.6 million ($0.80/share)
available for acquisition opportunities, product development and working
capital. The ITC of $201 thousand is the amount expected to be received by
the company for its 1996 claim to Revenue Canada for SRED expenses (1996 -
$495 thousand for 1995&1996). Accounts receivable, Accounts payable and
Deferred revenue are up substantially as a result of increased product sales
and maintenance contracts quarter over quarter.
For the Three For the Three
Consolidated Income Statements Months Ended Months Ended
($ 000's except per share amounts) Dec.31/97 Dec.31/96
REVENUE 1,509 1,234
EXPENSES
Compensation/Commissions 733 650
Product development costs 275 177
Amortization 119 128
G&A/other 314 229
----------- -------
TOTAL EXPENSES 1,441 1184
Earnings ( Loss ) Before Tax 68 50
Net Earnings ( Loss ) for the
Period 39 58
Net Earnings ( Loss ) per Common
Share 0.01 0.01
Revenues for the first three months are up 22% over the same period last
year, reflecting significant market penetration and acceptance of GMA's
enhanced products now available on Windows and UNIX operating systems.
Overall, net earnings of $39 thousand are down $19 thousand as expenses
increased 22% and income tax liability increased by $37 thousand. Increases
in compensation are the result of some additional staffing and salary
increases; product development costs have increased because GMA's new Windows
and UNIX products have now been commercialized and as a result these product
development costs are no longer capitalized ($60 thousand deferred in 1996)
and G&A/other expenses have increased because of expanded office lease costs
and general infrastructure costs consistent with GMA's sales growth, customer
service and administration. Nevertheless, management is confident that
earnings in 1998 will continue to grow as its multi-platform products gain
more exposure and acceptance in North American and international markets.
Ron Newman, President and Chief Executive Officer stated " As GMA and our
products become better know and accepted in international markets the
opportunity for growth is very encouraging. Revenue from the US operations
increased 55% over last year's figures and at the same time our European
operations increased revenues by 78%. This considerable revenue growth from
international markets positions GMA very well for continued global market
expansion. "
GMA International is a developer and supplier of geological, geophysical and
petrophysical computer-aided exploration (CAEX) software products. 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. |
