Did everyone know this ? It's very good !
Newsys Solutions Inc -
Second quarter results
Shares issued 10,000,000 1998-11-25 close $0.75
Thursday Nov 26 1998
Mr. Mark Quigg reports
Revenue for the second quarter ending Oct. 31, 1998, increased to $4,081,700,
up 46.9 per cent from the same quarter the previous year and 15.7 per cent over
the first quarter. Revenues for the first half reached $7,608,300. Sales in the
United States increased 19.8 per cent to reach $740,677 for the quarter. First half
United States sales totalled $1,341,781. Again, the strongest growth continues to
be in Canada with sales of $3,340,323 and $6,348,323 for first quarter and half
year, respectively, up 54.6 per cent and 44 per cent over the same period the
previous year.
Throughout the period of double digit revenue growth, NewSys has maintained
profitability. Pretax profits for the quarter were $103,680 and, for the first half
$208,105. This represents a decline over the previous year, largely due to the
continued investment in infrastructure, which impacts both direct costs as well as
sales, general and administrative expenses. On average, it takes up to six months
for this investment to generate returns.
The infrastructure investment is largely centred in human resource costs, including
training. As the investment in infrastructure stabilizes and economies of scale take
place, the company expects to experience a normalized four to five per cent
after-tax profit margin. After-tax profits for the first half were approximately 1.5
cents per share, for an after-tax profit margin approaching 2 per cent.
During the quarter, NewSys made a number of significant advancements. Strategic
decisions were made to accelerate the growth strategy geographically and in select
business sectors. In the United States, Bob Montminy was appointed as director,
Eastern U.S., adding valuable business relationships and experience in financial
and resource planning applications. Among the new contracts, 11 were new,
multinational clients, seven in the U.S. and four in Canada, including entry into two
new industry sectors. Subsequent to the quarter, Dan Scharf was appointed
vice-president, Business Intelligence Services. Other appointments include Sahira
Piracha, responsible for the development and management of data mining services,
a division of BIS.
The capital position of NewSys improved materially during the quarter. A total of
1,130,339 warrants were exercised at 49 cents for $553,866. The warrants were
primarily held by the executive management, employees, consultants, and directors
of NewSys. Working capital improved to $723,711 from $351,210 in the first
quarter. The company has no long-term debt.
The company's primary objective is to become one of the dominant players in
select sectors of the IT marketplace. |
