Financial results for Q1 1998 (Mar 18/98)
MARCH 18, 1998
RE: Informission Group Reports Strong Increase in
Earnings for 1st Quarter 1998: From a Net Loss of $25,000
to Net Earnings of $859,000
MONTREAL, QUEBEC--INFORMISSION GROUP INC., an information
technology (IT) company specializing in innovative and cost-
effective solutions for information systems conversion,
development and migration, announced today its results for the
first quarter ended February 28, 1998. Revenues almost tripled to
$6.2 million compared to $2.1 million for the same period in 1997.
Net earnings were $859,000 compared to a loss of $25,000 in first
quarter last year. The company had generated revenues of $13.9
million for fiscal year ended November 30, 1997, compared to $8.0
million for fiscal 1996. On February 27, 1998, the company filed
a preliminary prospectus with Canadian securities commissions for
an initial public offering.
"Significant investments in Research and Development in the past
four years have allowed Informission to be a step ahead and pro-
active in IT market demand. We will definitely continue expanding
our international presence and develop more strategic alliances
with information technology providers," said Mr. Jacques Topping,
Chairman of the Board, President and Chief Executive Officer.
Software Solutions For Specific IT Issues
Informission is committed to the development of software
solutions, and is currently concentrating its resources on
developing solutions to address specific IT issues: Year 2000 and
Euro- currency conversion, Intranet/Internet re-engineering,
telecommunications software and real-time embedded systems
development.
Through its research and development program, the company has
produced a line of proprietary re-engineering software products
(RECYC(TM)), designed to increase the productivity and life
expectancy of information systems by restructuring, extending or
migrating to newer, more powerful operating platforms and to more
advanced database formats. The company offers, through off-site
re-engineering factories called 'Excellence Centers', solutions
for the specific needs of customers around the world, including
Benetton, The Pillsbury Company, CGI and Michelin. The company
also provides on site services to assist businesses and
governments.
Strategy for Growth
Informission's strategy is designed to enable the company to
sustain an accelerated growth pattern beyond the Year 2000.
Principal elements of this strategy include expansion of
international presence by capitalizing on the Year 2000 conversion
market, leveraging business relationships, investing in its
Excellence Centers, continuing research and development, and
pursuing strategic acquisitions.
Profile
Informission Group Inc. is an information technology company
providing innovative and cost-effective solutions for information
systems conversion, development and migration. Informission
offers proprietary re-engineering software products and systems
integration solutions to clients located mainly in North America
and Europe. With three offices in Canada, one in the United
States, and operating in 8 different countries, Informission has
14 strategic partners, including CGI, IBM and Computer Sciences
Corporation. Informission was recently selected as one of the 50
best-managed Canadian private companies by Arthur Anderson and the
Financial Post.
INFORMISSION GROUP INC.
Statements of earnings
periods of three months
ended February 28 (Unaudited)
(In thousands of dollars) 1998 1997
_____________________________________________________________
Revenues
Systems integration solutions $3,809 $1,825
Software products and related revenues 2,394 290
_______________________
6,203 2,115
_______________________
Cost of revenues
Systems integration solutions 2,546 1,225
Software products and related revenues 383 211
_______________________
2,929 1,436
_______________________
Gross profit 3,274 679
______________________
Expenses
Selling and marketing 877 377
General and administrative 556 206
Research and development 319 82
Depreciation and amortization 156 44
_______________________
1,908 709
_______________________
Earnings before income taxes 1,366 (30)
Income taxes 507 (5)
_______________________
NET EARNINGS $859 $(25)
________________________
________________________
As at February 28 As at November 30
Pro-Forma
Balance sheet data 1998 1997 1996
_____________________________________
Current assets $6,709 $7,224 $2,544
Short-term debt 1,667 2,209 665
Working capital 2,149 1,170 736
Total assets 8,372 8,798 2,965
Long-term debt 1,085 1,300 233
Total shareholder's equity 2,698 1,415 924 |
