Here is the press release of the first quarter for the record.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: STERNE STACKHOUSE INC.
ASE SYMBOL: SSX
MARCH 31, 1999
Sterne Stackhouse Inc. Announces Financial Results For
The First Quarter Ended January 31st 1999
CALGARY, ALBERTA--Sterne Stackhouse Inc. ("SSX:ASE") today
announced its (unaudited) financial results for the first quarter
ended January 31st, 1999.
/T/
Financial Results
First quarter ended January 31st, 1999
Three months ended
January 31 January 31
1999 1998
$ $
-----------------------------------------------------
Revenue $1,276,565 $ 702,895
Operating expenses 1,121,266 542,147
Depreciation & amortization 114,300 83,651
Earnings before tax 154,783 165,043
Deferred income taxes 71,000 42,000
Net income (loss) 83,783 123,043
Earnings per share 0.015 0.022
Outstanding shares 5,640,496 5,564,496
-----------------------------------------------------
/T/
Previously, it has been documented that Sterne Stackhouse Inc.
("SSI") executed a Canadian oil and gas joint sales agreement with
Petroleum Information/Dwights Canada Ltd. ("PIDC") on December
28th, 1998. The IHS Energy Group of Denver, Colorado (revenue of
$130MM) owns PIDC, and is a major force in the petroleum data
services business in the U.S. The IHS Group (revenue of $475MM)
owns the IHS Energy Group.
IHS/PIDC paid $1,000,000 to SSI on December 31st, 1998 for a
3-year agreement, and this sum has been recorded in our 1st
Quarter, 1999 revenue statement. As well in this quarter, three
(3) years of oil and gas software development costs ($540,000)
related to this agreement have been expensed in advance. These
expenses will then be subtracted from our ongoing monthly
development costs over the next three years. Conventional
Petro-LAB(TM) revenues dropped in this quarter, as there are no
renewal revenues this quarter for two multi-year deals which were
recorded in the same period last year. Moreover, it has taken
time to negotiate other third party agreements geared to make a
blended data/software solution even more compelling. The
prospects for continued revenue growth in 1999 are strong, as
Petro-LAB(TM) has clearly established itself as the new standard
for an oil and gas corporate software solution.
It is important that our shareholders understand the main purposes
of our agreement with IHS. They are:
1. To combine Petro-LAB(TM)'s corporate software, with the best
databases, on the fastest data server, in order to provide the
most cost effective solution available to the Canadian petroleum
industry.
2. To work closely with IHS Energy (Canada) in order to evaluate
the significant opportunity to work with IHS Energy in the U.S.
petroleum market.
3. To explore the potential to work with the IHS Group in other
industries outside of oil and gas.
There are no revenue sharing provisions, as each company is
required to focus on its strengths, software and data
respectively. Although Petro-LAB(TM) and PIDC land data are
bundled together, the agreement ensures that both companies will
make all other strategic decisions involving complementary data
and software together. Simply put, IHS presides over competitive
data decisions, and SSI presides over software decisions.
Proprietary data decisions remain the domain of SSI, and SSI has
already modelled over fifty (50) oil and gas databases.
Importantly, PIDC and SSI have agreed to work with other premier
vendors to continually improve a blended data/software solution
for the Canadian oil and gas marketplace.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Sterne Stackhouse Inc.
Darryl Stackhouse
President and Chief Financial Officer
(403) 263-6325
The Alberta Stock Exchange has neither approved nor disapproved of
this release.
INDUSTRY: SOF
SUBJECT: ERN
-0- |
