Networks North Inc. posts 23rd consecutive profitable quarter cash provided by operating activities more than doubles
NASDAQ:NETN
TORONTO, Jan. 14 /CNW-PRN/ - Networks North Inc. (NASDAQ: NETN - news) announced its results for the quarter ended November 30, 1998. Although revenues in the core interactive network and educational video businesses increased, overall revenues for the quarter of $3,636,117 were 2.7% below the $3,737,114 reported a year earlier. The revenue decline resulted from a designed change in product direction in the company's 51% owned subsidiary, Interlynx Multimedia Inc. Net income for the quarter was $190,951, a slight decline from the $205,057 reported for the fiscal 1998 first quarter. However, in the first quarter of fiscal 1998, the company recorded a foreign exchange gain of $82,000 on US Dollar holdings versus a foreign exchange loss of $30,000 on US Dollar holdings in the first quarter of the current year. Ignoring the effects of the foreign exchange on US Dollar holdings in the first quarter of both years, the net profit for the first quarter of the current year would have been 79% above the previous year. Cash provided by operating activities in the first quarter was $447,306, 121% higher than the cash provided by operating activities in the first quarter of the previous year. All figures are reported in Canadian Dollars.
For the Qtr. Ended For the Qtr. Ended
Nov. 30, 1998 Nov. 30, 1997
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Revenues $3,636,117 $3,737,114
Operating Income 663,460 680,755
Net Income 190,951 205,057
Earnings per Common Share 0.07 0.08
As at As at
November 30, 1998 August 31, 1998
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Total Current Assets $7,061,996 $6,597,149
Total Assets 16,413,550 16,047,907
Total Current
Liabilities 2,703,532 2,523,314
Total Liabilities 5,189,421 5,014,729
Shareholders' Equity 11,224,129 11,033,178
''While we continue to produce profits in our core businesses, our company is developing a number of exciting new technology opportunities in emerging markets,'' commented Peter Rona, President and CEO.
Interlynx Multimedia has been restructured, and now offers corporations powerful WEB BASED TRAINING solutions via the Internet and Intranets through its recently developed proprietary software product, ''PROFIS''. This major shift from CD-ROM development, in a saturated market, to a new growth market has taken place over the last six months. ''We are very excited about the world wide potential for ''PROFIS'' in the future,'' added Peter Rona.
Sonoptic Technologies Inc., a 75% owned subsidiary of Magic Lantern Communications Ltd. has, over the last three years, developed an expertise in the field of digital video, MPEG encoding, and has accumulated a knowledge base on how digital video can enhance and improve the efficiencies for networks. Sonoptic engaged the consulting division of the Business Development Bank of Canada to review its product offerings and to prepare a sales and marketing plan. This plan is now being implemented. Peter Rona noted, ''This is another growth market that we believe has excellent potential for our company.''
Networks North Inc.'s operating units include wholly owned Magic Lantern Communications Ltd., NTN Interactive Network Inc. (NTNIN), and 51% of Interlynx Multimedia Inc. NTNIN is the exclusive Canadian licensee of NTN Communications, Inc. (AMEX:NTN - news), a leading producer and programmer of interactive television, on-line and Internet entertainment. The NTN Entertainment Network distributes programming to more than 15 million participants per month at restaurants, sports bars, and other group viewing locations throughout North America, including over 530 in Canada with over 2.5 million participants. Magic Lantern is Canada's premier distributor of educational media resources, with exclusive rights to over 14,000 titles in English and French. Magic's subsidiaries provide MPEG encoding, video duplication, distribution, and fulfillment services for broadcasters. Interlynx Multimedia is a new media production and distribution company encompassing all aspects of electronic communications including web based training, CD-ROM, the Internet and the World Wide Web.
Financial Statements in this press release other than historical facts are ''forward-looking'' statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements are subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. |
