Hummingbird reports sales of U.S. $130 million for fiscal 1998
TORONTO, Oct. 20 /CNW/ - Hummingbird Communications Ltd. (TSE: ''HUM''
and NASDAQ: ''HUMCF''), a world leading enterprise software company, today
announces its consolidated results for the fourth quarter and year ended
September 30, 1998. The financial figures in this release are reported in U.S.
dollars and in accordance with U.S. generally accepted accounting principles
(''U.S. GAAP''), except where noted.
The business combination with Andyne Computing Limited, which was
completed during the year, has been accounted for as a pooling of interests
for U.S. GAAP. Accordingly all prior periods have been restated to include
results of the Andyne merger.
Sales for the year ended September 30, 1998 were $130 million, compared
to $118.1 million for the year ended September 30, 1997. Excluding merger and
restructuring charges and write off of intangibles, basic and diluted earnings
per share (EPS) were $2.09 and $2.07 respectively, compared to $2.10 and $2.05
respectively in the prior year.
Said Fred Sorkin, Hummingbird President and Chief Executive Officer,
''Fiscal 1998 has been a very important year for Hummingbird, a year of
transition, expansion, and growth, and we have taken all the right steps to
position the company for successful years ahead.''
Continued Sorkin, ''Having achieved ownership status in the connectivity
market, we have not only strengthened our position but we were also able to
utilize the high profitability from this sector to fund our entry into a much
larger and faster growing market; business intelligence. We have made a
substantial investment, and built the necessary infrastructure and this
foresight and planning has resulted in a pivotal year for the company. By
taking all the right steps during the year, we have placed the company in a
strong position for fiscal 1999. As reflected here in our financial results,
the company remains highly profitable, and this in itself is a testament to
sound business planning and well-orchestrated expansion into the broader
business intelligence market. With all the ingredients in place, including a
very healthy balance sheet, superior technology, an employee base that
includes some of the very best talent in the industry, and a long-standing
spirit of winning, I anticipate an exciting and successful year ahead.''
Expenses for the year were $76.4 million, compared to $64.3 million for
the previous year. Expenses for the year include $5.7 million for the merger
and restructuring charges and $1.5 million for the write off of intangibles,
compared to write off of intangibles of $6.2 million in the preceding year.
Net income was $26.6 million, compared to $29 million in the prior year.
Excluding merger and restructuring charges and write off of intangibles, net
income was $32.6 million compared to $32.2 million in the last year. Basic and
diluted EPS for the current year were $1.70 and $1.68, respectively, compared
to $1.88 and $1.84, respectively in the previous year. Excluding the merger
and restructuring charges and write off of intangibles, basic and diluted EPS
were $2.09 and $2.07 respectively, compared to $2.10 and $2.05 in the last
year.
For the fourth quarter ended September 30, 1998, sales were $33.5
million, compared to sales of $33.4 million for the same quarter ended
September 30, 1997. Gross profit was $31.7 million, compared to $32.2 million
in the previous year. Expenses were $18.8 million during the quarter, compared
to $16.3 million for the preceding year. Net income for the quarter was $8.5
million, compared to $9.2 million for the same quarter of last year. Basic and
diluted EPS were $0.54 for the quarter, compared to basic EPS of $0.59 and
diluted EPS of $0.57, last year.
The Company's total assets were $204.1 million at September 30, 1998,
compared to $176.5 million at September 30, 1997.
In accordance with Canadian generally accepted accounting principles, for
the quarter ended September 30, 1998, net income was $5.8 million compared to
$9.3 million in the same quarter of the previous year. Basic and fully diluted
EPS for the current quarter were $0.37 and $0.35, respectively. Basic and
fully diluted EPS were $0.67 and $0.62 respectively for the quarter ended
September 30, 1997. For the year ended September 30, 1998, net income was
$20.9 million, and basic and fully diluted EPS were $1.37 and $1.30,
respectively, compared to net income of $30.2 million, and basic and fully
diluted EPS of $2.18 and $2.02 respectively for the year ended September 30,
1997.
Some of the above statements are forward-looking and may involve risks
and uncertainties, including, without limitation, changes in market and
competition, technological and competitive developments, and potential
downturns in economic conditions generally. Additional information on these
and other potential factors that could affect the Company's financial results
are included in documents filed with the Ontario Securities Commission, and
with the Securities and Exchange Commission.
Hummingbird Communications Ltd. specializes in the development of
enterprise software solutions, including network connectivity and business
intelligence products that provide high performance access to
internetwork-based information and applications. Hummingbird products are sold
and supported internationally by authorized resellers in more than 40
countries. The Company is headquartered in North York, Ontario, Canada, with
offices strategically located throughout Canada, the United States, Australia,
Switzerland, Germany, France, Sweden and the United Kingdom.
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