Rainier,
Concerning the discussion about Q4 97, it does seem that the
company did EPS of 17cts/share on revenues of CDN$ 14 million.
At that point, the company even pre-announced it's "exceptional"
Q. So this baseline number of -12cts/share must be erroneous.
Now a 17cts/share result is quite impressive and makes me wonder
if PERLF didn't book a large number of sales in their Q4 in order
to make year end results look good. If this was the case, it's
probably was a mistakes as it sets the bar exceedingly high for
the following Q's and makes the investment community lose interest
in the stock. I hope they are more moderate this time! What about
11cts/share?
The full release follows. It contains all the information you
may want about Q4 97. Cheers.
Trilobyte
Quarterly Sales Exceed Analyst's Expectations
and Fourth Quarter Earnings Are $0.17 Per Share
TORONTO, June 30 /CNW/ - Perle Systems Limited (Nasdaq: PERLF; Toronto:
PL) today reported sales of CN $13,926,009 for the fourth quarter ended May
31,1997 and net profit of CN$1,245,306. This compares to sales of
CN$10,540,347 and a net loss of CN$394,699 in the third quarter of fiscal 1997
and sales of CN$16,025,142 and a net loss of CN$1,915,327 in the fourth
quarter of fiscal 1996. Earnings per share were CN$0.17 in the fourth quarter
of fiscal 1997 compared to losses per share of CN$0.05 in the third quarter of
fiscal 1997 and CN$0.26 in the fourth quarter of fiscal 1996.
Total sales for the fourth quarter increased 32% from the third quarter
of fiscal 1997 and decreased 13% from the fourth quarter of fiscal 1996.
Remote Access product sales for the fourth quarter amounted to 12% of total
sales as compared to 8% for the third quarter of fiscal 1997 and 9% in the
fourth quarter of fiscal 1996.
Gross margins were 69% for the fourth quarter of fiscal 1997, 3% higher
than the third quarter of fiscal 1997 and 8% higher than the comparable
quarter of fiscal 1996.
Selling, general and administration for the fourth quarter of fiscal were
47% of sales, improved from 56% of sales in the third quarter of fiscal 1997
and 61% of sales in the fourth quarter of fiscal 1996.
For the fiscal year ended May 31, 1997, sales were CN$43,948,680 down 5%
from CN$46,298,277 the previous year. Net loss for the year was CN$4,881,583
or CN$0.68 per share as compared to CN$.58 in fiscal 1996. The current year's
loss per common share does not include an income tax benefit of approximately
CN$0.28 per share available to reduce future years income taxes, the
comparable figure was CN$0.20 in fiscal 1996.
President and Chief Executive Officer Joe Perle, remarked, ''We have had
an outstanding fourth quarter. In my message to shareholders for the third
quarter I delineated our strategy for the subsequent five quarters, being to
aggressively pursue the profitable world wide AS/400 remote connectivity
market and to invest substantially all profits into accelerating growth in the
Remote Access portion of our business. The specific strategic objectives
were:
-- To improve profits and eliminate losses as quickly as possible. This
was to be accomplished through higher gross margins and lower selling, general
and administrative expenses' -- We met and exceeded this objective, generating
$1.2 million of profits over and above the reinvestment in accelerating growth
in the Remote Access portion of our business;
-- To reposition the Perle Remote Access products to focus sales
activities' -- Fourth quarter sales of our Remote Access products more than
doubled those in the third quarter;
-- To improve net cash flows' -- Cash increased approximately $1.3
million while the Company remained debt free.''
The Company's quarterly results vary depending on many factors including,
but not limited to, fluctuations in sales levels. These quarterly results are
not necessarily indicative of those in the future.
Perle Systems Limited, founded in 1976, is a developer, manufacturer and
seller of award winning data communications hardware and software products.
Perle products include Remote Communications Controllers for IBM AS/400
networks and Remote Access Servers for LANs. Perle specializes in products
where customers require remote access, to their mission critical applications,
with ease of use, extreme reliability, low cost and leading edge service and
support. Perle sells these products world-wide through Perle offices in 15
countries located in North and South America, Europe, Asia and Australia. For
more information on Perle and its products, access the Company's web site at:
perle.com.
Forward looking statements in this release are made pursuant to the
''safe harbor'' provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward looking statements involve
risks and uncertainties, including, without limitation, continued acceptance
of the Company's products, increased levels of competition for the Company,
new products and technological changes, the Company's dependence upon third
party suppliers intellectual property rights and other risks detailed form
time to time in the company's periodic reports filed with the Securities and
Exchange Commission.
<<
PERLE SYSTEMS LIMITED
CONSOLIDATED BALANCE SHEETS
(Canadian dollars)
As at May 31, 1997 May 31,1996
ASSETS (audited) (audited)
Current:
Cash $4,863,935 $9,546,004
Accounts receivable 10,382,950 11,800,207
Inventories 1,580,942 2,063,345
Prepaid expenses 1,235,889 1,355,202
Income taxes recoverable 1,612,102 901,066
Total current assets 19,675,818 25,665,824
Capital assets, net 2,498,030 2,939,088
Other assets 6,511,940 6,273,167
Total Assets $28,685,788 $34,878,079
LIABILITIES AND SHAREHOLDERS' EQUITY
Current:
Accounts payable and accrued
liabilities 6,234,670 8,130,056
Deferred revenue 2,397,410 1,846,369
Total current liabilities 8,632,080 9,976,425
Shareholders' Equity:
Common share capital - authorized:
unlimited (issued and
outstanding: 7,172,508) 27,539,584 27,505,947
Deficit (7,485,876) (2,604,293)
Total Shareholders' Equity 20,053,708 24,901,654
Total Liabilities and Shareholders' Equity $28,685,788 $34,878,079
PERLE SYSTEMS LIMITED
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)
(Canadian dollars)
For the twelve months ended May 31 1997 1996
(audited) (audited)
Retained earnings (deficit),
beginning of the year ($2,604,293) $1,151,231
Net income (loss) for the year (4,881,583) (3,755,524)
Retained earnings (deficit), end
of the year ($7,485,876) ($2,604,293)
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Canadian dollars)
For the year For the three months
ended May 31 ended May 31
1997 1996 1997 1996
(audited) (audited) (unaudited) (unaudited)
Sales $43,948,680 $46,298,277 $13,926,009 $16,025,142
Expenses:
Cost of sales 15,608,329 17,599,735 4,281,308 6,283,763
Selling,
general and
administration 26,587,951 26,782,360 6,566,556 9,799,503
Research and
development
expenditures
(net of ITCs) 5,735,774 5,610,734 1,599,544 1,761,725
Amortization
of capital
assets 1,005,131 866,963 252,317 245,442
Interest
expense
(income) (106,922) (313,135) (19,022) (101,918)
48,830,263 50,546,657 12,680,703 17,998,515
Income (loss)
before income
taxes (4,881,583) (4,248,380) 1,245,306 (1,963,373)
Income tax
expense
(recovery) --- (492,856) --- (48,046)
Net income
(loss) for the
period ($4,881,583) ($3,755,524) 1,245,306 (1,915,327)
Earnings (Loss)
per common
share - basic ($0.68) ($0.58) $0.17 ($0.26)
-fully diluted ($0.68) ($0.58) $0.17 ($0.26)
PERLE SYSTEMS LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Canadian dollars)
For the year ended May 31 1997 1996
Cash provided by (used in): (audited) (audited)
Operating activities
Net loss for the period ($4,881,583) ($3,755,524)
Add (deduct) items not affecting
cash:
Investment tax credits (540,000) (1,070,000)
Amortization of capital assets 1,005,131 866,963
Deferred income taxes 283,642 (784,036)
(4,132,810) (4,742,597)
Deduct change in non-cash working
capital balances related to
operations (36,408) (1,855,507)
Cash used in operating activities (4,169,218) (6,598,104)
Investing activities
Loans to shareholders, officers and
directors 17,585 209,024
Additions to capital assets
(564,073) (1,233,646)
Cash used in investing activities
(546,488) (1,024,622)
Financing activities
Issuance of common shares 33,637 16,137,380
(Decrease) increase in bank
indebtedness --- (1,078,895)
Cash provided by financing activities 33,637 15,058,485
Net increase (decrease) in cash and cash
equivalents during the year (4,682,069) 7,435,759
Cash and cash equivalents, beginning of
the year 9,546,004 2,110,245
Cash and cash equivalents, end of the year $4,863,935 $9,546,004
Components of change in non-cash working
capital balances related to operations:
Accounts receivable $1,417,257 ($5,932,149)
Inventory 482,403 799,991
Prepaid expenses 119,313 (283,752)
Income taxes recoverable (711,036) (208,394)
Accounts payable and accrued
liabilities (1,895,386) 3,636,455
Deferred revenue 551,041 132,342
($36,408) ($1,855,507)
>>
-30-
For further information: J. Douglas Langford, Chief Financial Officer of
Perle Systems Limited, (905) 946-5001 or Robert M. Joyce, Manager of IR of OTC
Communications, (800) 458-1799
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