2nd Q earnings out and looking good.
Q/Media has record second-quarter results
Q/Media Services Corp QMS
Shares issued 8,361,605 Mar 4 close $2.50
Fri 5 Mar 99 News Release
Mr. Robert Lawrie reports
The company had record results for the second quarter of fiscal 1999,
including a revenue increase of 143 per cent and operating earnings growth
of 246 per cent compared with the same period last year.
For the three months ended Jan. 31, 1999, revenues were $27.5-million
compared with $11.3-million for the three months ended Jan. 31, 1998, an
increase of 143 per cent. Earnings before interest, taxes, depreciation and
amortization (EBITDA) were $2.7-million compared with $1.1-million, an
increase of 145 per cent. Net earnings were $1.4-million compared with a
net loss of $7.3 million. Net earnings per share were 13 cents compared
with a net loss per share of 90 cents per share.
For the six months ended Jan. 31, 1999, revenues were $54.3-million
compared with $19.2-million for the six months ended Jan. 31, 1998, an
increase of 183 per cent. EBITDA was $5.8-million compared with
$2.1-million, an increase of 176 per cent. Net earnings were $3.0-million
compared with a net loss of $6.7-million. Net earnings per share were 29
cents compared with a net loss per share of 87 cents per share.
Although the second quarter and year-to-date revenues and earnings were
substantially ahead of budget, the company expects to return to its normal
revenue pattern for the next two quarters. The second quarter, which
includes the seasonally-slower holiday season was boosted by outstanding
results in December, the strongest month in company history.
Integration of the company's newest facility at Irvine, Calif. is
proceeding well. The company recently completed the transition at Irvine to
the same back office management information system used by its other units.
The Irvine operation includes a higher volume of lower gross margin work
than is normally processed by the company but the operation successfully
achieves its profit expectations. Overall company gross margins continue to
reflect integration activity following an acquisition and are expected to
improve as Irvine and the two recently-added CD-ROM manufacturing
facilities mature.
Response to Q-Media's expanded CD-ROM capacity continues to be positive.
The company's two newest CD-ROM manufacturing facilities in Austin and
Seattle are functioning well and management is preparing to add a fourth
facility by this summer to keep up with the growing demand.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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As I see it that Should indicate at least $0.55 earnings for the year.
With a conservative p/e of ten we should see $5.50 per share.
Lets see if the market notices!!!
Later
Keith
EDIT QMS up $0.25 |
