Q1 results
NEWSYS REPORTS 1998 FIRST QUARTER RESULTS AND NEW BOARD MEMBER
OTTAWA, ONTARIO, Sept. 23 /CNW/ - (NSS-ASE) - NewSys Solutions Inc.
(''NewSys'' or the ''Company'') is pleased to announce record revenues for the
first quarter ending July 31, 1998. Revenues for the quarter increased
forty-three percent (43%) to $3,526,600 from $2,452,871 the previous year.
The largest growth was recorded in Canada with sales of $3,008,000, up from
$2,249,000 the previous year. Sales in the United States also grew to
$519,000 for the quarter, up from $204,000 the previous year. The growth is
attributed to increased investment in sales and marketing and to continued
strong demand for IT services professionals throughout North America.
Mark Quigg, Chairman & CEO of NewSys, characterized the first quarter as
''a successful building quarter, where the increased investment in
infrastructure contributed both to revenue growth and the ability to sustain
the new sales levels.'' In particular, sales and marketing costs almost
doubled for the quarter, over the previous year, and general and
administration costs increased over twenty three percent (23%).
As a result of the additions in the sales and marketing staff,
relationships with a number of new clients were in their infancy and the
opportunity to sell higher valued added services and products into the new
client base has not yet been realized. This contributed to a 3.4% decline in
gross margins from the same period in the previous year. Margins are expected
to improve over time as relationships with clients evolve.
The increase in costs caused a decline in overall pre-tax profitability
from $156,375 to $104,425, which translates to approximately $0.01 per share
after tax. The decision to focus on sales and add to the cost structure is a
deliberate corporate strategy to build central mass and presence in the market
place. In addition, the first quarter has historically been the weakest
quarter due to the summer months.
The Company is pleased to announce the addition of Patrick J. Power, BSc,
MSc as a Director of NewSys. Mr. Power has been an advisor over the past year
to NewSys as the Company has made the transition from a private company to a
public company. He has over two decades' experience in the technology
industry, with emphasis on design and development and sales and marketing.
Mr. Power holds Bachelor of Science and Masters of Science degrees in Computer
Science from the University of Western Ontario. He has been a director of a
number of private and public companies. Additionally, he has founded and/or
has participated in the startup teams of several successful companies,
including Xicom Technologies Corporation (co-founder), Corel Systems
Corporation, Newbridge Networks Corporation, Nuvo Network Management Inc.
(founder) and SteppingStone Capital Corporation (founder). Currently,
Mr. Power is President & CEO of SteppingStone Capital Corporation, a corporate
finance boutique specializing in providing corporate finance services to
technology companies.
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 |
