Earnings today:
HUMMINGBIRD REPORTS THE THIRD QUARTER OF FISCAL 1998
TORONTO, July 22 /CNW/ - Hummingbird Communications Ltd. (TSE: ''HUM''
and NASDAQ: ''HUMCF''), a world leading enterprise software company, today
announces its unaudited consolidated results for the third quarter ended June
30, 1998. The financial figures in this release are reported in U.S. dollars
and in accordance with U.S. generally accepted accounting principles (''U.S.
GAAP''), except where noted.
The Company reported sales of $33.5 million for the quarter ended June
30, 1998. Basic and diluted earnings per share (EPS) for the current quarter
were $0.57 and $0.56, excluding the amortization of intangibles related to
Datenrevision, a company acquired by Hummingbird during the quarter.
Fred Sorkin, Hummingbird's Chairman, President and Chief Executive
Officer said, ''I am pleased with the financial results of this third fiscal
quarter. Our markets continue to grow and we continue to add new important
customers on both the business intelligence and enterprise connectivity side.
Also, we have taken important steps during the quarter to develop the
infrastructure in the Business Intelligence Division. It is most notable that,
during this strategic period in Hummingbird's history, our business values
remain unchanged, with particular focus on top line revenue growth as well as
the bottom line, which has always been a key element of our business
objectives.''
Continued Sorkin, ''As we move toward the close of fiscal 1998, our
product and marketing plans are fully underway, designed to enhance our
position as a major business intelligence software provider. We will be making
significant product announcements within the next few weeks in the area of
business intelligence and connectivity, that we expect will generate
substantial revenues in the new fiscal year.''
In conclusion, Sorkin said, ''we are preparing the Company for
significant growth in Fiscal 1999, indicative of the internal development of
the organization as well as our expectation of important strategic
acquisitions. We continue to apply our world class research and development
skills to maintain our position and reputation as a leader and innovator of
software solutions for corporate enterprises around the globe.''
For the quarter, sales were $33.5 million compared to sales of $31
million for the quarter ended June 30, 1997, an increase of 7.9%. Gross profit
rose 6.1% to $31.7 million, compared to $29.9 million in the previous year.
Expenses were $17 million during the quarter, an increase of 10.1% over $15.4
million for the preceding year. Included in total expenses for the quarter is
$0.4 million for the amortization of intangibles related to Datenrevision.
Net income for the quarter was $8.5 million, compared to $8.6 million for
the same quarter of last year. Excluding the amortization of intangibles
related to Datenrevision, net income for the quarter was $8.9 million. Basic
as well as diluted EPS were $0.54 for the quarter, compared to basic EPS of
$0.56 and diluted EPS of $0.55, last year. Excluding the amortization of
intangibles related to Datenrevision, basic and diluted EPS for the current
quarter were $0.57 and $0.56 respectively.
Sales for the nine months ended June 30, 1998 were $96.4 million, a 14%
increase over the same nine months of fiscal 1997. Expenses for the nine-month
period ended June 30, 1998 increased by 19.9% to $57.6 million, from $48.1
million for the similar period last year. Expenses include $5.7 million for
merger and restructuring charges, and $1.5 million for the write off of
intangibles, and amortization of $0.4 million relating to Datenrevision,
compared to $6.2 million for the write off of intangibles in the previous
year. Net income was $18.1 million for the nine-month period, compared to
$19.8 million for the similar period in the previous year. Excluding merger
and restructuring charges, the write off of intangibles and the amortization
of intangibles related to Datenrevision, net income for the nine month period
was $24.5 million, compared to $23 million for the same period last year.
Basic and diluted EPS for the nine-month period were $1.16 and $1.14
respectively, compared to $1.29 and $1.27 for the similar period in the
previous year. Excluding merger and restructuring charges, the write off of
intangibles and the amortization of intangibles related to Datenrevision,
basic and diluted EPS were $1.58 and $1.55 respectively, compared to $1.51 and
$1.48 respectively in the last year.
The Company's total assets were $202.3 million at June 30, 1998, compared
to $160.3 million at June 30, 1997.
In accordance with Canadian generally accepted accounting principles, for
the quarter ended June 30, 1998, net income was $5.9 million compared to $7.5
million in the same quarter of the previous year. Basic and fully diluted
earnings per share for the current quarter were $0.37 and $0.35 respectively.
Basic and fully diluted earnings per share were $0.54 and $0.50 respectively
for the quarter ended June 30, 1997.
Some of the above statements are forward-looking and may involve risks
and uncertainties, including, without limitation, changes in market and
competition, technological and competitive developments, and potential
downturns in economic conditions generally. Additional information on these
and other potential factors that could affect the Company's financial results
are included in documents filed with the Ontario Securities Commission, and
with the Securities and Exchange Commission.
Hummingbird Communications Ltd. specializes in the development of
enterprise software solutions, including network connectivity and business
intelligence products that provide high performance access to
internetwork-based information and applications. Hummingbird products are sold
and supported internationally by authorized resellers in more than 40
countries. The Company is headquartered in Toronto, Canada, with offices
strategically located throughout Canada and the United States, Australia,
Switzerland, Germany, France, Italy, Sweden and the United Kingdom, and South
Africa.
<<
HUMMINGBIRD COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF INCOME U.S. GAAP
(Thousands of U.S.$, except
per share amounts, unaudited)
Three Months Ended Nine Months Ended
June 30 June 30
1998 1997 1998 1997
---- ---- ---- ----
SALES $33,479 $31,040 $96,417 $84,615
COST OF SALES 1,738 1,137 4,319 3,340
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GROSS PROFIT 31,741 29,903 92,098 81,275
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EXPENSES
Sales and marketing 9,997 8,108 28,978 21,762
Research and development 3,408 3,955 11,481 10,916
General and
administration 2,292 2,473 6,982 6,664
Merger and restructuring - - 5,715 -
Compensation related to
stock options 175 240 588 719
Amortization of
intangibles
- Datenrevision 367 - 367 -
Amortization of
intangibles - Others 734 642 2,039 1,849
Write off of intangibles - - 1,498 6,156
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TOTAL EXPENSES 16,973 15,418 57,648 48,066
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INCOME BEFORE OTHER INCOME 14,768 14,485 34,450 33,209
OTHER INCOME 1,534 1,363 4,588 3,871
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INCOME BEFORE INCOME TAXES 16,302 15,848 39,038 37,080
INCOME TAXES 7,753 7,259 20,923 17,266
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NET INCOME $8,549 $8,589 $18,115 $19,814
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BASIC EARNINGS PER SHARE $0.54 $0.56 $1.16 $1.29
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DILUTED EARNINGS PER SHARE $0.54 $0.55 $1.14 $1.27
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BASIC WEIGHTED AVERAGE
NUMBER OF SHARES
(in Thousands) 15,776 15,328 15,556 15,244
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DILUTED WEIGHTED AVERAGE
NUMBER OF SHARES
(in Thousands) 15,966 15,541 15,884 15,530
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RECONCILIATION TO CANADIAN GAAP
NET INCOME, per U.S. GAAP $8,549 $8,589 $18,115 $19,814
Compensation related to
stock options 175 240 588 719
Amortization of
Intangibles (2,857) (842) (6,590) (2,081)
Write off of intangibles - - (4,184) 6,156
Merger and restructuring - - 5,715 -
Deferred income taxes - - - (2,607)
Effects of pooling
restatement - (476) 1,544 (1,116)
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NET INCOME, per
Canadian GAAP $5,867 $7,511 $15,188 $20,885
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BASIC EARNINGS PER SHARE $0.37 $0.54 $1.00 $1.51
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FULLY DILUTED EARNINGS
PER SHARE $0.35 $0.50 $0.95 $1.41
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BASIC WEIGHTED AVERAGE
NUMBER OF SHARES
(in Thousands) 15,776 13,905 15,122 13,843
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FULLY DILUTED WEIGHTED AVERAGE
NUMBER OF SHARES
(in Thousands) 17,549 15,493 16,895 15,431
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HUMMINGBIRD COMMUNICATIONS LTD.
CONSOLIDATED BALANCE SHEETS U.S. GAAP
(Thousands of U.S.$, unaudited)
June 30
1998 1997
---- ----
ASSETS
CURRENT ASSETS
Cash $31,533 $14,719
Short-term investments 110,300 97,632
Accounts receivable 28,181 24,941
Income taxes recoverable 763 -
Inventory 871 829
Prepaid expenses 2,195 2,722
Other receivables 307 848
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174,150 141,691
FIXED ASSETS 10,869 6,891
INTANGIBLES 13,531 8,050
DEFERRED INCOME TAXES 3,717 3,619
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$202,267 $160,251
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LIABILITIES
CURRENT LIABILITIES
Accounts payable 4,669 3,700
Accrued liabilities 11,093 6,215
Income taxes payable - 1,202
Deferred revenue 7,408 5,635
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23,170 16,752
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SHAREHOLDERS' EQUITY
SHARE CAPITAL 89,157 81,624
ADDITIONAL PAID IN CAPITAL 3,234 2,405
CUMULATIVE TRANSLATION ADJUSTMENTS (1,259) (1,271)
RETAINED EARNINGS 87,965 60,741
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179,097 143,499
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$202,267 $160,251
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HUMMINGBIRD COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. GAAP
(Thousands of U.S.$, unaudited)
Three Months Ended Nine Months Ended
June 30 June 30
1998 1997 1998 1997
---- ---- ---- ----
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net income $8,549 $8,589 $18,115 $19,814
Add items not affecting
cash:
Amortization of
intangibles 1,101 642 2,406 1,849
Write off of intangibles - - 1,498 -
Compensation related to
stock options 175 240 588 719
Deferred income taxes - 34 (131) (1,192)
Minority interest - 14 - 14
Depreciation 712 555 1,978 1,473
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10,537 10,074 24,454 22,677
CHANGES IN NON-CASH
WORKING CAPITAL
Accounts receivable 3,407 (1,257) 948 (8,975)
Inventory 107 94 305 (108)
Prepaid expenses 56 (518) 766 187
Other receivables (69) 8 (95) (66)
Accounts payable (629) 610 953 881
Accrued liabilities (2,148) 1,144 1,089 2,540
Deferred revenue 109 736 1,226 1,777
Income taxes payable 488 1,318 (4,392) (4,987)
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11,858 12,209 25,254 13,926
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INVESTING ACTIVITIES
Additions to fixed assets (498) (856) (4,926) (3,013)
Acquisition of
subsidiary (6,308) - (8,682) -
Acquisition of
intangibles - 35 - (265)
Cumulative translation
adjustments - (41) (78) (35)
Short-term investments (36,510) (36,696) (11,207) (17,691)
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(43,316) (37,558) (24,893) (21,004)
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FINANCING ACTIVITY
Issuance of shares 1,751 967 4,607 1,927
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1,751 967 4,607 1,927
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INCREASE (DECREASE) IN
CASH (29,707) (24,382) 4,968 (5,151)
CASH, BEGINNING OF PERIOD 61,240 39,101 26,565 19,870
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CASH, END OF PERIOD $31,533 $14,719 $31,533 $14,719
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>>
%SEDAR: 00003205E
-30-
For further information: 1. INDER P.S. DUGGAL, CHIEF FINANCIAL OFFICER
AND CHIEF CONTROLLER; 2. LARRY RUDOLF, SENIOR DIRECTOR, CORPORATE AFFAIRS AND
INVESTOR RELATIONS, TEL: (416) 496-2200, FAX: (416) 496-2207, email:
investors@hummingbird.com |
