Comments on Q3 earnings?
MICROSTAR SOFTWARE LTD ("MSS-T") - Third Quarter Financial Results
Microstar Software Ltd. announced results for the third quarter of fiscal year 1999, ended October 31, 1998.
Results for the third quarter of fiscal 1999 show revenues of $1,405,000 an increase over $1,333,000 for the third quarter of fiscal 1998. Net income of $60,000 in the quarter compared to $100,000 for the third quarter of fiscal 1998, and earnings per share were $0.02 compared to $0.03 in the third quarter of fiscal year 1998. The third quarter of fiscal year 1999 represents the seventh consecutive quarter of profitability for Microstar.
The balance sheet for the company remains strong with $4,353,000 in current assets - of which $3,072,000 is cash - and $497,000 in liabilities. At the 1998 fiscal year-end, on January 31, 1998, the company had $4,148,000 in assets and $687,000 in liabilities.
"I am pleased the company has continued to show profitability and that our balance sheet remains strong," said Peter Jordan, Microstar's chief executive officer. "The market for content management solutions has been in ongoing evolution, and yet we have maintained profitability for seven consecutive quarters."
In the third quarter, we released FastTAG 3.0, a smart conversion tool, which allows content managers to create both new content and retrofit existing information, regardless of format, into a common Content Management Solution (CMS). Microstar secured the exclusive development and marketing rights to FastTAG from Interleaf Inc. as part of a far-reaching product and service partnership in the first quarter of fiscal 1999.
About Microstar
Microstar Software Ltd. provides structured information management solutions comprised of technology and services for Global 2000 companies. These solutions enable Microstar's customers to effectively and economically create, manage and distribute their corporate knowledge assets. The company is recognized for its innovative standards-based solutions based on SGML and XML. Microstar's technology expertise includes the development of XML and SGML tools such as Near & Far(R) Designer and the AElfred XML parser. The company is listed on the Toronto Stock Exchange (MSS). Information about Microstar Software Ltd. is available on the World Wide Web at microstar.com.
This news release may contain forward-looking statements relating to the future performance of Microstar Software Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties and actual results may differ materially.
In summary, the results are as follows:
Consolidated Balance Sheets
(in thousands)
(unaudited)
As at
Oct 31 Jan 31
1998 1998
ASSETS
Current assets
Cash and temporary investments $ 3,072 $ 3,066
Accounts receivable 984 834
Unbilled receivables 133 171
Prepaid expenses 164 77
4,353 4,148
Recoverable investment tax credits 355 355
Capital assets 433 488
$ 5,141 $ 4,991
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 433 $ 585
Deferred revenue 64 102
497 687
Shareholders' equity
Share capital 5,911 5,876
Retained earnings (deficit) (1,267) (1,572)
4,644 4,304
$ 5,141 $ 4,991
Consolidated Statements of Earnings and Retained Earnings
(in thousands, except per share data)
(unaudited)
Three months ended
Oct 31
1998 1997
Revenues $ 1,405 $ 1,333
Cost of sales 746 623
Gross profit 659 710
Operating expenses
Selling, general and administrative 471 519
Research and development 160 107
Total operating expenses 631 626
Earnings from operations 28 84
Interest revenue 33 16
Earnings before taxes 61 100
Income tax expense 1 44
Utilization of tax loss carryforwards - (44)
1 -
Net earnings 60 100
Opening deficit (1,327) (1,853)
Closing deficit $ (1,267) $ (1,753)
Earnings per share
Basic $ 0.02 $ 0.03
Fully diluted $ 0.02 $ 0.03
Weighted average common shares
outstanding (000s)
Basic 3,115 3,097
Fully diluted 3,427 3,222 |
