TORONTO, Dec. 24 /CNW/ - GrandeTel Technologies Inc. (NASDAQ: GTTIF) today released
its results for the period ended October 31, 1996.
For the third quarter, the Company had a net loss of $1.7 million or 9 cents a share, compared with
a loss of $1.4 million or 7 cents a share for the year-earlier period. For the nine month period,
GrandeTel reported a loss of $5.6 million or 28 cents a share, a reduction from the $7.6 million or
38 cents a share reported during the 1995 third quarter.
Included in the results for the latest period is Other Income of $2.1 million, representing
compensation received from a partial settlement of a Company initiated share-option fraud action.
Earlier this year, the Company obtained product approval of the Dancall GSM cellular telephone
from the Ministry of Posts and Telecommunications of the Peoples Republic of China. In late
October of this year, the Company received a retail licence to sell the GSM cellular phones in
Shanghai. Sales of cellular phones are expected to increase as Chinese New Year approaches. The
Shanghai analogue cellular phone network which was closed in August is expected to re-open in
early 1997.
The Company's value-added forward fax operation offering discount fax services commenced
operation in November in Hong Kong and Guangzhou. Operations will be extended in early 1997
to Beijing and Shanghai.
``With successful promotion and marketing, we are confident that the forward fax operation will be
profitable in the coming year,'' said Kin Yuen, President. ``We are optimistic that our retail sales of
the GSM cellular phones will also add to more positive results during the upcoming months.''
Financial results are reported in accordance with Canadian Generally Accepted Accounting
Principles and are unaudited. The rate of conversion for the Canadian dollar into U.S. currency on
October 31, 1996 was $0.7476.
GrandeTel is a Canadian company with its North American headquarters in Toronto, Ontario and
its Asian headquarters in Hong Kong. The Company holds interest in joint ventures that manufacture
telecommunications products and provide paging and cellular telephone services in the PRC. The
Company's common shares and debentures trade on the NASDAQ service.
GRANDETEL TECHNOLOGIES INC.
Consolidated Statement of Earnings (Loss)
For the nine months ended October 31, 1996 with comparative
figures for October 31, 1995
(Stated in Canadian Dollars - 000's)
(unaudited)
3rd Quarter Nine Months YTD
1995 1996 1995 1996
---- ----- ---- -----
Sales $ 6,517 2,776 $ 12,141 7,292
Cost of Sales 5,520 2,513 10,334 6,298
-------- ------- -------- -------
Gross Profit 997 263 1,807 994
-------- ------- -------- -------
Operating, Selling and
Administrative Expenses
Advertising & Marketing 319 207 565 632
Salaries & Staff Benefits 1,799 657 5,919 2,152
Depreciation & 207 194 599 902
Amortization
Other G & A 1,583 1,734 5,244 4,361
-------- ------- -------- -------
3,908 2,792 12,327 8,047
-------- ------- -------- -------
Operating Profit (Loss) (2,911) (2,529) (10,520) (7,053)
Other Income (Expenses) 1,397 2,171 3,657 3,895
-------- ------- -------- -------
Operating Income (loss) (1,514) (358) (6,863) (3,158)
before financing -------- ------- -------- -------
Financing Expenses
Foreign exchange 567 759 1,142 723
loss (gain)
Interest expenses (643) 610 (327) 1,761
(income) -------- ------- -------- -------
(76) 1,369 815 2,484
-------- ------- -------- -------
Net Income (Loss) (1,438) (1,727) (7,678) (5,642)
Retained Earnings $ (124,997) (128,811) $ (118,757) (128,811)
(deficit), beginning of
period
Amortization of Appraisal 0 0 0 0
Increase
----------- ------------
Retained Earnings $ (126,435) (130,538) $ (126,435) (134,453)
(deficit), end of period
-------- ------- -------- --------
Earnings (Loss) Per Share $ (0.07) (0.09) $ (0.38) (0.28)
Weighted Average Common
Shares Outstanding 20,014,076 20,014,076 20,014,076 20,014,076
GRANDETEL TECHNOLOGIES INC.
Consolidated Statement of Changes in financial position
For the nine months ended October 31, 1996 with comparative
figures for October 31, 1995
(Stated in Canadian Dollars - 000's)
(unaudited)
1995 1996
---- ----
Cash provided by (used in)
Operating activites
Net profit (loss) for period $ (7,678) $ (5,642)
Item not involving cash:
Amortization of capital assets 599 902
Write-down of capital assets 44 221
TV recall provision write back 0 741
Gain (loss) on disposal of
fixed assets (124) 0
----------- ------------
(7,159) (3,778)
Changes in non-cash
working capital balances (12,987) (2,780)
----------- ------------
(20,146) (6,558)
Investing activities
Additions to capital assets (1,745) (56)
Additions to investments (3,106) (9,570)
Long term receivables 6,278 0
Additions to deferred costs 825 (34)
----------- ------------
2,702 (9,660)
----------- ------------
Financing activities
Long term debt - repayment 0 0
Increase (decrease) in cash
during period (17,444) (16,218)
Cash, beginning of period 42,896 19,967
----------- ------------
Cash, end of period $ 25,452 $ 3,749
/For further information: J. Patrick Howe, Nicolette Novak, Howe & Company Inc. (416)
863-6632/ |
