FYI.
Today Global Data Inc. provided an update on recent corporate developments and reported their second quarter results.
Text from the press release is included below.
For more information or a copy of the financial statements please contact:
Barry Hildred
416-815-0700 ext.224
416-815-0080 Fax
bhildred@equicomgroup.com
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GDI Global Data Inc.
93 Skyway Ave., Suite 108, Etobicoke, Ontario, M9W 6N6
Tel: (416) 675.0660 Fax: (416) 675.0676
Toronto Stock Exchange Symbol: GI
FOR IMMEDIATE RELEASE
GDI GLOBAL DATA INC. ANNOUNCES CURRENT STATUS OF CORPORATION
- Company also reports second quarter results -
TORONTO, Ontario, March 1, 1999 – Global Data Inc. (TSE:GI), today provided an update on recent corporate developments.
As a result of the slower than anticipated roll out of Granite's NOVAS handheld product, and the inability to secure a significant procurement contract which management had anticipated would be awarded in the second quarter of fiscal 1999, the Company is re-evaluating its ability and willingness to continue to support the deployment of Granite's business plan.
The Company retained The Platinum Group, a specialty investment banking firm, based in New York in January 1999, to investigate the potential for sale or divestiture of the Granite Communications asset; and further to support and supplement management's efforts to attract a strategic and/or financial partner and examine other alternatives, to provide the necessary capital to enable Granite to continue to develop its business. The Company anticipates being in a position to evaluate its alternatives, on a preliminary basis by mid March 1999.
In the interim, Granite has taken a number of steps to reduce its use of cash, to better reflect the current operating environment and limited corporate liquidity. Specifically, Granite, has implemented a series of cost-cutting measures including a temporary reduction of Granite's workforce. This cost reduction has been achieved in a manner that allows Granite to re-scale its operations once the requisite capital is secured.
The Company has appointed Lawrence E. Davis, as Interim President and CEO replacing Harry Klein, effective immediately. Cathy Widmer has also resigned as the Company's CFO, effective immediately. Additionally, the Company has appointed Barry Hildred, President of The Equicom Group Inc., a leading Financial Public Relations firm to the Company's Board of Directors. Mr. Hildred replaces Jim Crocker who has served on the Company's Board for the past year and a half.
Mr. Davis is a Principal of Saturn Capital Corporation, a firm of turnaround and restructuring specialists. Mr. Davis, has several years experience specializing in the development and implementation of operational reorganizations, enhancing liquidity and implementing business strategies. Mr. Davis has served as a turnaround advisor to boards and senior management of public and private companies and recently acted as President and Chief Executive Officer of a North American industrial products company.
"The appointment of Mr. Davis is very positive for GDI Global Data Inc." said David Dempster, Chairman of the Board. "Mr. Davis brings an objective and hands-on experience in leading operational turnarounds. Our first priority is to accelerate the divestiture of Granite, and refocus our resources on profitable growth.
The Company, today announced its second quarter financial results. For the three months ended December 31, 1998, the Company recorded revenue of $1.8 million and a net loss of $1.3 million ($0.09) per share compared to revenue of $2.0 million and a net loss of $0.9 million ($0.06) per share.
For the six months ended December 31, 1998, the Company recorded revenue of $3.9 million and a net loss of $2.2 million ($0.15) per share compared to revenue of $3.8 million and a net loss of $1.4 million ($0.10) per share. At December 31, 1998, the Company had $0.3 million of cash on hand.
As a result of the delay in Granite's business plan as well as a slower than anticipated roll-out of the Company's wireless business strategy, the Company does not anticipate that it will be profitable in either the third or fourth fiscal quarter of 1999. Additionally, the Company's ability to continue to operate is predicated on securing additional financing. The Company has also retained Saturn to support and supplement management's efforts to attract the necessary capital to enable the Company to continue to develop its core wireless business.
GDI Global Data Inc. provides integrated communications solutions directly in Canada and through its wholly owned subsidiary Global Data Wireless. GDI Global Data Inc. also develops, manufactures, sells and supports the VIDEOPAD, NOVAS and Featherweight line of handheld data communications products through Global Data Granite Communications, a subsidiary based in Nashua, New Hampshire. GDI Global Data Inc. can be reached through the Internet at globaldata.com
GDI Global Data Inc.'s common shares trade on The Toronto Stock Exchange ("TSE") under the symbol "GDI" with approximately 14.2 million shares outstanding.
What is of concern is " the Company's ability to continue to operate is predicated on securing additional financing. " . I sold my remaining 10,500 today at .22. Ouch, but I've made a tonne of dough on this one over the years.
L. |
