01 Communique records strong first quarter earnings
01 Communique Laboratory Inc OONE
Shares issued 19,076,860 Feb 19 close $0.33
Mon 22 Feb 99 News Release
Mr. Andrew Cheung reports
For the first quarter of 1999, revenues were $1,581,716, a 46 per cent
increase over the fourth quarter of 1998 revenue of $1,082,331. The first
quarter net income was $307,212 or 19 per cent of revenue and 1.6 cents
earnings per share.
The company's products continue to win awards and its presence in the
retail channel helps it continue to add new OEM (original equipment
manufacturers) customers. The result is strong revenue growth which
combined with control over the company's expenses, has resulted in
profitability for the quarter.
OEM customers accounted for 60 per cent of the first quarter revenue or
$922,910. Retail revenue also remained strong, representing 40 per cent of
total revenue or $636,806.
Loss for the fourth quarter of 1998 was $186,624, compared with the net
income of $307,212 for the first quarter of 1999. The reason for the
profitable performance is the increase in revenue and the planned reduction
in operating expenses.
After spending heavily in sales and marketing activities to build a retail
presence, the company has reduced its level of spending on marketing.
Management plans to maintain the current level of expenditures.
The company generated positive cash flow for the first quarter of $646,043,
as a result of:
profitable operations for the quarter generating cash flow of $315,007; and
positive change in non-cash working capital of $331,036 with the major
contributing factor being the success of a concerted effort to improve
collections from the retail channel.
Subsequent to the first quarter, $300,000 was raised with subordinated
debt, which, combined with a bank operating line of $750,000, gives the
company access to over $1,000,000 of cash.
FINANCIAL HIGHLIGHTS
Three months ended Jan. 31
1999 1998
Revenue $ 1,581,716 $ 669,828
Gross profit $ 1,511,328 $ 621,704
Operating
expenses $ 1,204,116 $ 1,717,554
Net income
(loss) $ 307,212 $(1,095,850)
Earnings (loss)
per share 1.6 cents (5.7 cents)
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