NHC Announces Fourth Quarter and Full-Year Results of Fiscal 1998
MONTREAL, Nov. 23 /CNW/ - NHC Communications Inc. today announced its
results for the fourth quarter and fiscal year ended July 31, 1998. These
results have been reclassified retroactively to reflect the disposal of NHC
Communications Limited (formerly, The Fiber Company Limited) the Company's
subsidiary in the United Kingdom, effective July 31, 1998.
Revenues for the 1998 fiscal year totaled $12,529,000 compared to
$13,445,000 for 1997. For the fourth quarter, revenues were $2,912,000 in 1998
compared to $3,351,000 in 1997. The lower revenues in both the latest quarter
and fiscal year are mainly attributable to a management initiative to reduce
marketing, sales and promotional activities as well as research and
development.
Operating loss from continuing operations was $1,272,000 for fiscal 1998,
compared to a loss of $1,845,000 for 1997. For the fourth quarter, operating
loss from continuing operations was $835,000, compared to a loss of $1,535,000
for the similar period of 1997. Net income for fiscal 1998 was $978,000 ($0.07
per share fully diluted), compared to a net loss of $15,081,000 ($1.21 basic
per share) for 1997. For the fourth quarter, net income was $1,861,000 ($0.12
per share fully diluted), compared to a net loss of $14,294,000 ($1.15 basic
per share). The significantly higher 1998 results are attributable to the net
income of $1,806,500 related to discontinued activities recorded in fiscal
1998, compared to a loss of $12,883,200 related to discontinued activities
recorded in fiscal 1997, as well as lower operating losses from the remaining
lines of business. Fiscal 1998 net income related to discontinued activities
includes a net gain of $3.0 million on the sale of the U.K. subsidiary.
''We are extremely pleased with the sale of the U.K. subsidiary,'' said
Sylvain Abitbol, President and Chief Executive Officer. ''We have sufficient
funds to focus on the marketing and further development of our Switching and
Connectivity lines of business.''
NHC Communications Inc. (TSE: NHC) specializes in developing products
that increase the competitive edge of its customers by applying innovative
technology to the delivery of high-speed mixed media networks. NHC is
committed to its customers by delivering superior solutions for physical layer
network infrastructures. NHC sells through leading resellers supported by
sales locations in Atlanta, Boston, Chicago, Dallas, New York, Stockton (CA),
Paris (France) and Montreal (Canada).
NHC may be contacted through its web site: www.nhc.com
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NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
For the Three-Month Period Ended July 31st, 1998
(in thousands of Canadian dollars, except per share amounts)
Fourth Quarter 1998 Fourth Quarter 1997
-------------------------------------------------------------------------
Sales $2,912 $3,351
Gross profit $1,310 $1,088
Operating loss from continuing operations $(835) $(1,535)
Net income (loss) $1,861 $(14,294)
Loss from continuing operations per
share (primary) $(0.05) $(0.13)
Net income (loss) per share - Primary $0.15 $(1.15)
Net income (loss) per share - Fully
diluted $0.12 Anti-dilutive
Shares used in the calculation of the
per share amounts:
Primary 12,479,200 12,454,200
Fully-diluted 15,668,200 15,868,800
NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
For the Twelve-Month Period Ended July 31st, 1998
(in thousands of Canadian dollars, except per share amounts)
Twelve Months 1998 Twelve Months 1997
-------------------------------------------------------------------------
Sales $12,529 $13,445
Gross profit $5,620 $5,414
Operating loss from continuing
operations $(1,272) $(1,845)
Net income (loss) $ 978 $(15,081)
Loss from continuing operations
per share (primary) $(0.07) $(0.27)
Net income (loss) per share - Primary $0.08 $(1.21)
Net income (loss) per share - Fully
diluted $0.07 Anti-dilutive
Shares used in the calculation of the
per share amounts:
Primary 12,479,200 12,454,200
Fully-diluted 15,668,200 15,868,800
NHC may be contacted through its web site: www.nhc.com
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For further information: Sylvain Abitbol, President, C.E.O., NHC
Communications Inc., Internet: pr@nhc.com, Web Site: www.nhc.com or Sylvain
Brossard, CA, V.P. Finance and Corporate Controller, NHC Communications Inc.,
Internet: s.brossard@nhc.com; 1-800-361-1965, Fax: (514) 735-8057 |
