First quarter results
NHC Communications Inc NHC
Shares issued 8,825,536 Dec 15 close $0.34
Wed 16 Dec 98 News Release
Mr. Sylvain Abitbol reports
Revenues totalled $2,789,400 for the first quarter ended Oct. 30, 1998,
compared to $2,556,900 for the similar period last year, an increase of 9
per cent.
The increase was attributable to a strong performance by the Southern
European business unit based in Paris and increased sales of existing
switching products, which more than offset a general decline in sales of
connectivity products in North America. Operating loss from continuing
operations decreased to $172,400 in the first quarter compared to $259,400
in the similar period last year, reflecting the higher sales and
cost-cutting measures implemented in fiscal 1998.
In addition to the higher revenues, the company recorded an income of
$205,400 from discontinued operations, bringing the quarter to a near
break-even position. The company posted a slight loss of $20,600 compared
to a loss of $404,600 for the first quarter last year. The income from
discontinued operations is based on performance payments stipulated in the
contract of sale on the disposition of NHC Communications Limited, the
Company's former U.K. subsidiary, which closed on Oct. 27, 1998.
The proceeds from the sale of the U.K. subsidiary have allowed the
completion of several new products which have been under development over
the past 12-18 months. Switchex DVS, a high potential product based on
technology already being successfully implemented in Japan, will be
launched in December. At least four new products, including Switchex ISP,
Stakit WAN, Stakit SF and Stakit A Fibre, will be ready for commercial
release in January 1999.
FINANCIAL HIGHLIGHTS
Three months ended Oct. 30
(thousands of dollars)
1998 1997
Sales $2,789 $2,557
Gross profit $1,295 $1,466
Operating (loss)
from continuing
operations $(172) $(259)
(Loss) $(21) $(405)
(Loss) from con-
tinuing operations
per share (2 cents) (2 cents)
Net income (loss)
per share 0 cents (3 cents)
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