NEWSYS REPORTS RECORD FISCAL 1998 RESULTS
OTTAWA, ONTARIO, Sept. 15 /CNW/ - NEWSYS SOLUTIONS INC. (''NewSys'') today announced record results for the seven-month period ending April 30, 1998. The financial reorganization surrounding the Company's listing on the Alberta Stock Exchange (''ASE'') and the subsequent purchase of Newsys New Systems Solutions Ltd. on May 15th, 1998, resulted in a change of year end from September 30th to April 30th. Accordingly, the following operating results are for the seven-month fiscal year ending April 30th 1998 and include the operations of Newsys New Systems Solutions Ltd.
Revenues in the seven-month period increased 41 percent to $7,559,000
from $5,364,000 for the same period the previous year. The greatest increase
was realized in the three months ending April 30, 1998 where revenues reached
an annual run rate of $14.1 million. This would compare with $9.7 million for
the year ending September 30, 1997.
Net income for the seven-month period also increased 46 percent to
$185,000 compared with $127,000 the previous year. Cash flow from operations
grew $141,000 adding to an already healthy working capitalization.
By way of an IPO in February 1998, NewSys became listed on the ASE with
the intention of purchasing Newsys New Systems Solutions Ltd. The IPO
combined with a private placement, also in February 1998, netted proceeds of
$691,000. Warrants issued in conjunction with the private placement, if fully
exercised, will net the company an additional $550,000 by October 31st, 1998.
The proceeds of the financing activities combined with the current line of
credit will be more than sufficient to fund the Company's internal growth
plans for the coming year.
''The past year has been an exhilarating one for NewSys. Financially,
going public was a success and the company realized strong revenue growth and
profit growth - the best year ever,'' stated Mark Quigg, CEO and NewSys co-
founder. ''Our existing business partnerships with software firms continue to
flourish and we were able to add three new partners, about which we are very
excited.''
Profit magazine this year ranked NewSys 15th among Canada's 100
fastest-growing companies, up from 87th position in 1997, recognition of a
five-year growth rate of 2,888% over the period ending September 30, 1997.
NEWSYS SOLUTIONS INC., founded in 1989, is a leading information
technology/information management (IT/IM) consulting services company. The
company provides private and public sector clients in North America with
qualified technology professionals. These professionals assist clients in
moving a project forward and focus in the IT/IM fields of:
- System Development, Implementation and Integration;
- Business Intelligence Systems/Data Warehousing;
- Software Outsourcing;
- Internet Applications; and
- Year 2000 Applications.
The Alberta Stock Exchange has not reviewed and does not accept
responsibility for the adequacy of accuracy of this release.
For further information: Mark Quigg, CEO or Frank Post, CFO, NewSys
Solutions Inc., (613) 761-9436, e-mail: info@newsys.com, Web site:
www.newsys.com |
