AIT Advanced Information Technologies -
Year end results
Shares issued 9,700,500
1998-11-25 close $0.75
Thursday Nov 26 1998
Mr. Bernard Ashe reports
For the year ended Sept. 30, 1998 revenue from the Identification Products business was $11.3-million with an operating income before unusual items of $126,000. This compares with revenue of $14.4-million and operating income before unusual items of $268,000 for the previous year. The net loss from continuing operations, after taking effect of the unusual writedown of inventory and investment tax credits of $4.3-million, was $4.2-million compared to $1.4-million for the previous year. Losses and writedowns from discontinued operations of $12.7-million result in a net loss for the year of $16.9-million.
Revenue for the fourth quarter from the Identification Products business was $2-million compared with $4.5-million for the fourth quarter of fiscal 1997. Net loss before unusual items was $600,000 compared with a net income before unusual items of $300,000 for the same quarter last year. After recording the effects of unusual items during the quarter of $3.8-million, the net loss from continuing operations was $4.4-million compared to $1.3-million for the same quarter last year.
The company announced in August its intention to focus on its core competence of supplying Identification Products for the issuance and inspection of secure documents. The company completed the divestiture of the Interactive Security Products division and will now operate with a single concentration on building the Identification Products business.
With respect to the divestiture of the Interactive Security Products division, the gross proceeds, before closing costs, were $1.4-million resulting in a loss on disposal of $3.5-million. This is combined with the operating loss and writeoff of investment tax credits of $9.2-million, resulting in the overall loss from discontinued operations of $12.7-million.
These losses do not result in any cash impact to ATI's continuing business. The working capital position is strong enough to finance this company for the foreseeable future.
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