First quarter results
Telular Canada Inc TC
Shares issued 14,200,000 Nov 25 close $1.35
Thu 26 Nov 98 News Release
Mr. Harry Klein reports
Sales were $2,148,728 and the operating loss was $857,079 for the first
quarter ended Sept. 30, 1998. This compares to sales of $1,757,323 and an
operating loss of $1,310,817 for the corresponding period last year.
Net loss for the period ended Sept. 30, 1998 was $898,540 (six cents per
share) versus a net loss of $523,366 (four cents per share) for the quarter
ended Sept. 30, 1997. The discrepancy between net loss and operating loss
is almost solely due to an offsetting gain resulting from the sale of
Telular Corp. shares in the prior period.
The company has implemented an aggressive business plan for the current
fiscal year which includes significantly growing its top line through new
product offerings. Both the CS-832 and NOVAS handheld, position Telular
Canada at the forefront of the integrated wireless and handheld computing
marketplaces. However, the impact from these new products will not
contribute to revenue until the third fiscal quarter of this year when both
products will be ready for commercial production. Development on these new
products will be completed in the first half of the current fiscal year
while the company phases out its old product lines.
Gross margins for the quarter ended Sept. 30, 1998 were 32.6 per cent of
sales versus the 33.8 per cent level achieved in the same period last year.
The company expects that gross margins will increase in the latter half of
the current fiscal year as Telular Canada begins shipping its new NOVAS
line of handheld products as well as its CS-832 meter reading product.
Operating expenses for the quarter declined to $1.53-million from
$1.92-million for the same period last year representing a total reduction
in operating expenses of approximately 20 per cent. This reduction in
operating expenses is due to cost cutting initiatives (primarily to general
and administrative expenses) implemented over the past fiscal year. The
company expects its total operating expenses to remain at approximately
$1.5-million per quarter for the remainder of the fiscal year.
During the quarter, the company continued to prepare both the CS-832 and
the NOVAS handheld for production while considerably ramping up its overall
marketing initiative. This initial marketing effort has positioned Telular
as a leading candidate for several international opportunities spanning a
wide array of applications. Although the process has only just started, the
company is involved in numerous field trials for both products and 20 value
added resellers (VARs) are currently marketing the NOVAS product.
The quarter also saw the company successfully sign Nortel (Northern
Telecom) as a licencee of its fixed wireless technology in Canada and the
announcement of a proposed name change to be approved at the annual general
meeting of shareholders. Subject to approval on Dec. 8, 1998, the new
corporate name will be GDI Global Data Inc.
At the end of the quarter, the company had no long-term debt and possessed
working capital of $1,977,283.
CONSOLIDATED STATEMENT OF INCOME
Three months ended Sept. 30
1998 1997
Net sales $2,148,728 $1,757,323
Cost of sales 1,447,900 1,163,968
---------- ----------
Gross profit 700,828 593,355
Operating expenses 1,557,907 1,904,172
---------- ----------
Operating (loss) (857,079) (1,310,817)
Interest and other
income 0 0
Gain on sale of
investment (27,480) 802,952
Income/corporate
taxes (13,981) (15,501)
---------- ----------
Net (loss) income $ (898,540) $ (523,366)
========== ==========
(Loss) earnings
per share (6 cents) (4 cents) |
