Earnings:
OTTAWA, Sept. 8 /CNW/ - Microstar Software Ltd. today announced results
for the second quarter of fiscal year 1999, ended July 31, 1998.
Results for the second quarter of fiscal 1999 show revenues of $1,447,000
compared to $1,673,000 for the second quarter of fiscal 1998; net income of
$124,000 compared to $265,000 for the second quarter of fiscal 1998; and
earnings per share of $0.04 compared to $0.08 for the second quarter of fiscal
1998. The second quarter of fiscal year 1999 represents the sixth consecutive
quarter of profitability for Microstar.
''I am pleased the Company has continued to show profitability. We have
completed the restructuring process and are now concentrating on future
growth. In this regard, during this quarter, the Company put in place a
strong new senior management team including Shawn Ling, Vice President, Sales
and Marketing and Lanny Klassen, Vice President, Solutions Delivery. With key
executives now in place, growing the North American sales force and the
services delivery team are high priorities. As well, the Company is
aggressively pursuing new partnerships with companies providing the
leading-edge XML technologies required for Content Management System
solutions'', said Peter Jordan, CEO.
Last quarter, we began shipping Near & Far Designer version 3.0, the only
industrial strength product for creating XML and SGML content models or DTDs.
It continues to receive excellent reviews.
InfoWorld says, ''This graphical Windows tool makes it a snap to quickly
create complex XML and SGML DTDs''.
LANTIMES says, ''This solid product is a must have for both Web neophytes
and veterans''.
ABOUT MICROSTAR SOFTWARE LTD.
Microstar Software Ltd. provides structured information management
solutions comprised of technology and services for Global 2000 companies.
These solutions enable Microstar's customers to effectively and economically
create, manage and distribute their corporate knowledge assets. The company is
recognized for its innovative standards-based solutions based on SGML and XML.
Microstar's technology expertise includes the development of XML and SGML
tools such as Near & Far(R) Designer and the AElfred XML parser. The company
is listed on the Toronto Stock Exchange (MSS). Information about Microstar
Software Ltd. is available on the World Wide Web at microstar.com.
This news release may contain forward-looking statements relating to the
future performance of Microstar Software Ltd. Forward-looking statements,
specifically those concerning future performance, are subject to certain risks
and uncertainties and actual results may differ materially.
A summary of results follows:
Consolidated Balance Sheet (in thousands)
(unaudited)
As at
Jul 31 Jan 31
1998 1998
------------------------------------------------------------------------
ASSETS
Current Assets
Cash and temporary investments $ 2,686 $ 3,066
Accounts receivable 1,352 834
Unbilled receivables 58 171
Prepaid Expenses 99 77
------------------------------------------------------------------------
4,195 4,148
Recoverable investment tax credits 355 355
Capital assets 415 488
------------------------------------------------------------------------
$ 4,965 $ 4,991
------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 308 $ 585
Deferred revenue 73 102
------------------------------------------------------------------------
381 687
------------------------------------------------------------------------
Shareholders' equity
Share capital 5,911 5,876
Retained earnings (deficit) (1,327) (1,572)
------------------------------------------------------------------------
4,584 4,304
------------------------------------------------------------------------
$ 4,965 $ 4,991
------------------------------------------------------------------------
Consolidated Statement of Earnings and Retained Earnings
(in thousands, except per share data)
(unaudited)
Three months ended
July 31
1998 1997
------------------------------------------------------------------------
Revenues $ 1,447 $ 1,673
Cost of Sales 786 623
------------------------------------------------------------------------
Gross Profit 661 1,050
------------------------------------------------------------------------
Operating expenses
Selling, general and administrative 370 657
Research and development 198 143
------------------------------------------------------------------------
Total operating expenses 568 800
------------------------------------------------------------------------
Earnings from operations 93 250
Interest 31 15
------------------------------------------------------------------------
Earnings before taxes 124 265
------------------------------------------------------------------------
Income tax expense 79 111
Utilization of tax loss carryforwards (79) (111)
------------------------------------------------------------------------
- -
------------------------------------------------------------------------
Net earnings 124 265
Opening deficit (1,451) (2,118)
------------------------------------------------------------------------
Closing deficit $(1,327) $(1,853)
------------------------------------------------------------------------
Basic earnings per share $ 0.04 $ 0.08
Common shares outstanding 3,104 3,097
There is no material dilutive effect on the earnings per
share on the exercise of the options.
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