Quarterly results - any comments???
Bob Gauthier
BCAM International, Inc. Reports Second Quarter Results Revenues Exceed $8 Million For Six Months; $4.2 Million for the Quarter
MELVILLE, N.Y., Aug. 19 /PRNewswire/ -- BCAM INTERNATIONAL, INC.
(Nasdaq: BCAM, Boston Stock Exchange: BAM) announced its results of operations for the second quarter and six months ended June 30, 1998.
Revenues from continuing operations for the six months and quarter ended June 30, 1998 totaled approximately $8,067,000 and $4,254,000, respectively. Revenues from continuing operations in the prior year six months and quarter ended June 30, 1997 were approximately $20,000 and $20,000, respectively. Importantly, the quarter ended June 30, 1998 showed a profit from operations of approximately $99,000 compared with a loss from operations of approximately $363,000 in the prior year. After excluding a non-cash, non-recurring charge from the six month results in 1998, operating losses for the six months declined to $461,000 from $705,000 in the prior year period. Operating income for the second quarter and six months ended June 30, 1998 included a one-time, non-recurring cash refund of approximately $300,000 in certain costs at the Company's Drew Technologies, Inc. subsidiary (''Drew'').
Revenues for 1998 reflect principally the revenues of Drew. Drew was acquired by the Company in September 1997. Earlier in 1998 and in the fall of 1997 the Company discontinued the operations of its HumanCAD Systems business (''HCAD'') and sold its Ergonomic Consulting Services business (''ECS''). Both ECS and HCAD have been reflected as discontinued operations in the Company's results of operations.
Net loss of $4,144,000 for the quarter ended June 30, 1998 reflects non- cash charges for the beneficial conversion feature of certain securities issued in 1997 which are convertible into the common stock of the Company ($1,591,000), write-off of interest and financing costs ($1,651,000) and accrual of an extraordinary charge ($552,000) related to the April 1998 restructure of the Company's secured Convertible Notes. Net loss of $8,328,000 for the six months ended June 30, 1998 reflects non-cash charges for the beneficial conversion feature of certain securities issued in 1997 which are convertible into the common stock of the Company ($3,084,000), write-off of interest and financing costs ($1,651,000), accrual of an extraordinary charge ($552,000) related to the April 1998 restructure of the Company's secured Convertible Notes, non-cash charges for compensation related to certain options which were at market value when issued in 1997 but below the market value when approved by the shareholders on February 19, 1998 ($858,000) and losses from discontinued operations ($803,000).
See enclosed table for financial comparison to the prior year quarter and six months.
''In the quarter and six months ended June 30, 1998 our Drew subsidiary contributed over $4 million and $8 million, respectively, in revenues and approximately $580,000 and $700,000, respectively, in operating profit,'' said Michael Strauss, Chairman and Chief Executive Officer of BCAM. ''I believe that the second quarter showed substantial reason to be encouraged about BCAM's future. With the discontinued operations now behind us, our strategy is to build on the operations and profits of Drew and to continue to seek a partner to support the Company's ''microvalve'' technology. A remaining challenge in our efforts to achieve sustained profitability is the refinance or restructure of the secured Convertible Notes coming due in April 1999. That effort is under way and is one of my highest priorities.''
BCAM International, Inc. is a medical footwear and technology company.
FORWARD LOOKING STATEMENTS
This announcement contains ''forward looking statements''. The words ''anticipate'', ''believe'', ''estimate'', ''expect'' and other similar expressions as they relate to the Company and its management are intended to identify such forward looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are include those mentioned in the Company's filings with the Securities and Exchange Commission including recently filed Forms SB-2, SB-2A, S-8, 8-K/A and the quarterly and annual reports on Forms 10-QSB and 10-KSB, respectively.
BCAM International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Three months ended June 30, Six months ended June 30,
1998 1997 1998 1997
Revenue
Sales $4,254,000 $ -- $8,065,000 $--
License revenue -- 20,000 2,000 20,000
Total 4,254,000 20,000 8,067,000 20,000
Cost of revenues 2,197,000 -- 4,534,000 --
Gross profit 2,057,000 20,000 3,533,000 20,000
Selling, general and
administrative 1,732,000 368,000 3,635,000 693,000
Research &
development 226,000 20,000 359,000 28,000
Income (loss) from
operations before
Non-recurring item 99,000 (363,000) (461,000) (705,000)
Non-recurring item-
Charge for Compensatory
element of 1997 options
approved in 1998 -- -- 858,000 --
Income (loss) from
operations before
Non-recurring item 99,000 (363,000) (1,319,000) (705,000)
Other income (expense)
Interest and
financing costs (431,000) -- (925,000) --
Charge for
beneficial debt
conversion (1,591,000) -- (3,084,000) --
Write-off debt
discount and
financing Costs (1,651,000) -- (1,651,000) --
Interest income 29,000 5,000 53,000 12,000
Interest and
financing costs (3,644,000) 5,000 (5,607,000) 12,000
Minority interests (47,000) -- (47,000) --
Loss from
continuing
operations $(3,592,000) $(358,000) $(6,973,000) $(693,000)
Discontinued
operations, including
estimated loss
of disposal
of approximately
$250,000 in 1998 -- (132,000) (803,000) (215,000)
Loss before
extraordinary item$(3,592,000) $(490,000) $(7,776,000) $(908,000)
Extraordinary
item-charge for
restructure of debt (552,000) -- (552,000) --
Net Loss $(4,144,000) $(490,000) $(8,328,000) $(908,000)
Net loss per share:
Continuing operations $(0.18) $(0.02) $(0.36) $(0.04)
Discontinued operations $-- $(0.01) $(0.04) $(0.02)
Loss per share before
extraordinary $(0.18) $(0.03) $(0.40) $(0.06)
Extraordinary item $(0.03) $-- $(0.03) $--
Net loss $(0.21) $(0.03) $(0.43) $(0.06)
Weighted average number
of common shares
outstanding 19,914,000 15,955,000 19,037,000 15,683,000
SOURCE: BCAM International, Inc. |
