From StockhouseDATAWAVE SYSTEMS INC ("DTV-V;DWVSF-L") -
Second Quarter Fiscal 1999 Financial Results
Clive Barwin, CEO of DataWave announced financial results for
the second quarter ended September 30, 1998. Revenues of
US$3,667,097 for the second quarter ended September 30,
1998 presented an increase of 21% compared to US$3,028,157
for the second quarter ended September 30, 1997. Revenues of US$6,395,706 for the six months
ended September 30, 1998 presented an increase of 35% compared to US$4,733,516 for the six
months ended September 30, 1997.
During the quarter the Company provided approximately US$ 2 million in writedowns and
provisions relating to its investments in certain of its subsidiaries as part of its ongoing efforts to
reorganize its business strategy. This resulted from the Company's unsuccessful attempt to complete
the proposed US financing earlier this year when market conditions deteriorated in August, which
left the Company without the financial resources it needed to implement the business plans for these
subsidiaries. In the near term, the Company will consider its alternatives concerning its decision to
dispose or discontinue these business interests.
The Company expects, within the next two weeks, to provide shareholders with news concerning
additional financing.
3 months ended 3 months ended 6 months ended 6 months ended
September 30, September 30, September 30, September 30,
1998 1997 1998 1997
Revenue US$3,667,097 US$3,028,157 US$6,395,706 US$4,733,516
% Increase 21% 35%
Operating
Income
(Loss) US($1,087,898) US$205,113 US($1,541,190) US$181,111
Income
(Loss) US($3,768,150) US$106,105 US($5,169,533) US$16,217
Loss per
Share US($0.14) US$0.00 US($0.19) US$0.00
DataWave Systems Inc. manufactures and distributes intelligent prepaid electronic merchandisers,
delivering products through an automated retail distribution network which includes AT&T prepaid long
distance cards. The company currently distributes its prepaid products in Canada and the U.S. TEL:
(604) 874-1302 ext 301 Peter Hough, CFO FAX: (604) 874-1503
DataWave Systems Inc. Email: info@datawave.ca Internet: www.datawave.ca
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