NHC COMMUNICATIONS INC. ANNOUNCES SECOND QUARTER AND SIX MONTHS RESULTS OF FISCAL
1998
MONTREAL, March 10 /CNW/ - NHC Communications Inc. (NHC) announced today
results for its second quarter ended January 30, 1998. Revenues increased to
$5,032,000, up by 3% from the corresponding period in 1997. Furthermore, the
Company reported a loss of $71,000 as compared to a loss of $219,000 for the
second quarter of fiscal 1997. For the first six-months, revenues were
$9,035,000, up by 2% from the previous year, with a loss of $476,000. NHC has
experienced substantial growth in Switching and Fiber Optics solutions. Sales
of these products in this second quarter exceeded by 65.1% and 38.9%
respectively those of the same period last year; a dynamic illustration of
sales increase within NHC's Network Associates (Network General) partnership,
ISPs and Telco markets.
Gross profit for the second quarter was $2,327,000 or 46% of sales as
compared to $2,147,000 or 44% of sales for the same period one year earlier.
Operating expenses increased to $2,514,000 from $1,936,000 in the same period
last year. Basic loss per share for the quarter was $0.01 as compared to
$0.02 one year yearlier.
''Whilst we are encouraged by the Sales of both Switching and Fiber Optic
products a decrease in the Sales of our Connectivity Solutions slowed the
overall rate of growth in total revenue'' said Sylvain Abitbol, President and
CEO at NHC. ''Plans are already in place to not only regain the lost ground
in Connectivity but to enhance the Company's market share in this market'' he
added.
The primary objective of NHC's Commercial Strategy focuses on Switching
and Fiber Optics Products, Specifically, the Company intends to pursue key
strategic alliances with its broad range of Switching Solutions, which will be
concentrated around the new high speed products. Further exploitation of
lucrative applications will also provide significant expansion in Sales this
year. A realignment of Sales and Marketing effort to capitalize on our
presence with the Telco/Carrier Market is anticipated to provide increased
impetus to our Fiber Optic Sales.
''Our knowledge of market needs lets us anticipate on the solutions
demanded, and our technical excellence in R & D, provides us with the means of
responding to them. We expect to see continuing improvement of overall
operation performance throughout this calendar year'' noted 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, Chicago, Dallas, New York, Stockton (CA) and Montreal
(Canada). Its European subsidiaries are in Paris (France), York (U.K.).
NHC may be contacted through its web site: www.nhc.com
A conference call has been scheduled for 5:00 p.m. (Eastern time),
Tuesday March 1Oth, 1998. If you would like to participate, please call the
following number 1-800-478-9326. 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
and 1-416-695-5800, passcode: 156449.
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NHC COMMUNICATIONS INC.
Summary of Unaudited Consolidated Statements of Income
For the Two-Month Period Ended January 30, 1998
(in thousands of Canadian dollars, except per share amounts)
Second Quarter Second Quarter
1998 1997
-------------------------------------------------------------------------
Revenue $ 5,032 $ 4,893
Gross profit $ 2,327 $ 2,147
Operating (loss) income from continuing
operations $ (187) $ 211
Loss $ (71) $ (219)
Loss per share $ (0.01) $ (0.02)
Shares used in the calculation of the
basic loss per share 12,465,659 12,452,300
NHC COMMUNICATIONS INC.
Summary of Unaudited Consolidated Statements of Income
For the Six-Months Period Ended January 30, 1998
(in thousands of Canadian dollars, except per share amounts)
Six Months Six Months
1998 1997
-------------------------------------------------------------------------
Revenue $ 9,035 $ 8,888
Gross Profit $ 4,012 $ 3,957
Operating (loss) income from continuing
operations $ (588) $ 240
Loss $ (476) $ (351)
Loss per share $ (0.04) $ (0.03)
Shares used in the calculation of the
basic loss per share 12,465,659 12,452,300
>>
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For further information: Sylvain Abitbol, President et CEO, NHC
Communications Inc., 1-800-361-1965, Internet: s.abitbol@nhc.com, Site Web:
www.nhc.com; or Sylvain Brossard, C.A., V.P. Finance et Corporate Controller,
NHC Communications Inc., 1-800-361-1965, Internet: s.brossard@nhc.com;
www.nhc.com |
