RICHMOND, B.C., July 28 /CNW/ - MDSI Mobile Data Solutions Inc. (MDSI) of
Richmond, British Columbia (Nasdaq: MDSIF; TSE, ME: MMD) announced today its
second quarter results for the period ended June 30, 1998. MDSI's financial
results are stated in Canadian dollars and prepared in accordance with
generally accepted accounting principles in the United States.
Revenues for the second quarter ended June 30, 1998 were $17.9 million, a
27% increase over the $14.1 million in the first quarter of 1998 and compared
to $18.5 million in 1997. Software and services revenues were $11.0 million, a
24% increase over the first quarter of 1998 and compared to $11.2 million in
the comparable period in 1997. For the six months ended June 30, 1998 software
and services revenues were $19.9 million, an increase of 9% over 1997. Total
revenue, for the six months ended June 30, 1998, was $32.0 million as compared
to $36.5 million in the same period of 1997.
Net income and earnings per share for the second quarter ended June 30,
1998 were $1.1 million and $0.17 respectively. This compares to $76,262 and
$0.01 per share for the first quarter of 1998 and a loss and loss per share of
$8.4 million and $1.34 respectively for the same period in 1997. Net income
for the six months ended June 30, 1998 was $1.2 million or $0.18 per share as
compared to a loss of $7.1 million or $1.17 per share for the six months ended
June 30, 1997.
MDSI's backlog at June 30, 1998 increased to $51 million, a 42% increase
since March 31, 1998 and a 66% increase over June 30, 1997.
Erik Dysthe, Chairman & CEO of MDSI, commented: ''MDSI is extremely
satisfied with its strong second quarter performance. In addition to exceeding
analyst expectations for the quarter, we have resolved past problems and
significantly improved our backlog at the end of June, which gives us a strong
position going into the last half of the year. We are seeing strong activity
in all our markets. Also contributing to our strengthening position is the
successful delivery of our high quality taxi dispatch system to Radio Taxis of
London (RTL), which is now in full commercial operation. Being able to
successfully demonstrate this system now allows us to aggressively pursue
opportunities in the international taxi market. Our solution is second-
to-none for larger taxi fleets worldwide, and we expect the taxi industry to
contribute positively to our growth in the future.''
Significant new contracts that cover a broad customer base were signed
during the quarter. MDSI added a number of new Advantex customers in the
utility, telecommunications, cable, land transport and field service markets,
including BGE Home Products and Services, City of Richmond (VA) Department of
Public Utilities, Colorado Springs Utilities, Cox Communications, Knoxville
Utilities Board, and Southern California Edison. MDSI also entered into
additional contracts and system upgrades during the quarter for existing
customers such as Connecticut Natural Gas.
About MDSI
----------
MDSI is a global leader in the development and implementation of mobile
workforce management and wireless connectivity solutions to companies in the
utility, telecommunications, cable, taxi, courier, field service, and public
safety industries. MDSI's Advantex solutions allow companies with
geographically dispersed mobile workforces to close the gap between enterprise
systems and the field. Advantex empowers users across the organization with
real-time access to critical information, enhances the cost-effectiveness and
productivity of mobile workforces, and offers improved and innovative means of
serving customers. Advantex combines sophisticated appointment scheduling,
intelligent automatic order distribution, map-based dispatching, wireless data
communications, mobile computing, and comprehensive reporting capabilities,
and is seamlessly integrated with corporate networks, applications, and
databases to provide enterprisewide solutions. With a proven implementation
track record, MDSI differentiates itself with industry leading software
products, professional services, and strategic business alliances to ensure
the success of customers' end-to-end solutions. MDSI is the choice of industry
leaders such as: AT&T Wireless Services, Boston Edison Company, Cox
Communications, DHL Worldwide Express, Illinois Power Company, North Carolina
State Highway Patrol, Pacific Gas & Electric, PECO Energy Company, Radio Taxis
of London, San Diego Gas & Electric, and TeleDanmark.
Founded in 1993, MDSI has operations in the U.S., Canada, Europe, and
Asia. MDSI mobile workforce management and wireless connectivity solutions
empower field personnel in over 25 countries worldwide.
This press release contains statements that constitute ''forward looking
statements'' within the meaning of Section 27A of the Securities Exchange Act
of 1934. Such statements involve risks and uncertainties that may cause actual
results to differ materially from anticipated results.
<<
MDSI MOBILE DATA SOLUTIONS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in Canadian dollars)
(Unaudited)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
---------- ----------- ---------- ----------
REVENUE
Software and
services $11,023,474 $11,157,235 $19,940,451 $18,274,474
Terminals and
infrastructure 1,976,979 4,653,917 4,425,368 6,519,318
Third party
products and
services 3,058,007 1,993,667 4,096,302 10,205,900
Maintenance and
support 1,884,578 659,408 3,561,281 1,496,678
----------- ----------- ----------- -----------
17,943,038 18,464,227 32,023,402 36,496,592
DIRECT COSTS 9,197,337 9,446,115 16,257,302 20,897,756
----------- ----------- ----------- -----------
GROSS PROFIT 8,745,701 9,018,112 15,766,100 15,598,836
----------- ----------- ----------- -----------
OPERATING EXPENSES
Research and
development 2,048,764 1,842,652 3,975,843 3,242,378
Sales and marketing 3,267,134 2,896,190 6,406,130 5,021,402
General and
administrative 1,572,668 1,645,524 3,081,104 2,804,393
Amortization of
intangible assets 216,114 216,197 432,228 360,961
Acquired research
and development - 10,002,982 - 10,002,982
----------- ----------- ----------- -----------
7,104,680 16,603,545 13,895,305 21,432,116
----------- ----------- ----------- -----------
OPERATING INCOME
(LOSS) 1,641,021 (7,585,433) 1,870,795 (5,833,280)
OTHER INCOME 81,213 18,977 53,727 133,552
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
TAX PROVISION 1,722,234 (7,566,456) 1,924,522 (5,699,728)
PROVISION FOR INCOME
TAXES (585,859) (825,221) (711,885) (1,428,669)
----------- ----------- ----------- -----------
NET INCOME (LOSS)
FOR THE PERIOD $ 1,136,375 $(8,391,677) $ 1,212,637 $(7,128,397)
----------- ----------- ----------- -----------
NET INCOME (LOSS)
FOR THE PERIOD:
US GAAP 1,136,375 (8,391,677) 1,212,637 (7,128,397)
Acquired research
and development - 10,002,982 - 10,002,982
Amortization of
intangible assets (554,991) (520,133) (1,109,472) (817,209)
----------- ----------- ----------- -----------
CANADIAN GAAP $ 581,384 $ 1,091,172 $ 103,365 $ 2,057,376
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
EARNINGS (LOSS) PER
COMMON SHARE:
US GAAP (Diluted) $ 0.17 $ (1.34) $ 0.18 $ (1.17)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
CANADIAN GAAP
(Basic) $ 0.09 $ 0.17 $ 0.02 $ 0.34
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
WEIGHTED AVERAGE SHARES OUTSTANDING:
US GAAP (Diluted) $ 6,635,811 $ 6,271,831 $ 6,628,682 $ 6,104,535
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
CANADIAN GAAP
(Basic) 6,479,089 6,271,831 6,472,712 6,104,535
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
MDSI MOBILE DATA SOLUTIONS INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian dollars)
As at
-----------------------------
June 30, December 31,
1998 1997
-----------------------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,253,251 $ 110,117
Accounts receivable, net
Trade 14,361,826 15,256,202
Unbilled 9,174,010 9,604,060
Work in progress 2,512,525 1,451,662
Prepaid expenses 1,327,930 1,647,748
Deferred income taxes 1,988,923 2,096,544
-----------------------------
32,618,465 30,166,333
CAPITAL ASSETS, NET 4,568,216 4,291,755
INTANGIBLE ASSETS, NET 5,753,698 6,185,926
-----------------------------
TOTAL ASSETS $ 42,940,379 $ 40,644,014
-----------------------------
-----------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 5,813,344 $ 3,936,501
Accrued liabilities 4,806,932 8,353,417
Deferred revenue 4,856,164 3,985,261
Current portion of long-term debt 387,324 215,454
Current obligations under capital leases 448,639 20,621
-----------------------------
16,312,403 16,511,254
OBLIGATIONS UNDER CAPITAL LEASES 939,138 -
LONG-TERM DEBT - 296,324
-----------------------------
TOTAL LIABILITIES 17,251,541 16,807,578
-----------------------------
STOCKHOLDERS' EQUITY
Common stock 43,793,804 43,154,039
Treasury stock (122,743) (122,743)
Retained earnings (deficit) (17,982,223) (19,194,860)
-----------------------------
25,688,838 23,836,436
-----------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 42,940,379 $ 40,644,014
-----------------------------
-----------------------------
>>
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For further information: Investor Relations: (604) 207-6300 or fax (604)
270-1310 or ir@mdsi.bc.ca or Web site: www.mdsi-advantex.com
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