For those of you out there that still follow the IPV saga. Here's their latest press release. The whole IPV story seems to have evolved into somewhat of a pathetic joke under Mr. Graham's leadership???. The latest surprise that Tisma couldn't ship orders because of cash flow problems is just one more confirmation that this company has been totally mismanaged.
On the latest Tisma financing announcement, I believe I raised cash flow issues in one of my previous posts last year . So the announcement comes as no surprise. What I do find particularly amusing or surprising is the comment "...This loan replaces existing financing while adding no new long-term debt or equity to the balance sheet..."
I really doubt the company could even come close to issuing any long-term debt or new equity. Who would be so foolish?
John
Image Processing Systems Inc. (Toronto:IPV.TO - news) (TSE:IPV)-under its trade name IPS Automation-announced today that a new financing arrangement has
been concluded with a US lender for its Chicago-based TMC division. The new term loan of US$2.5 million will provide TMC with increased working capital under
a flexible arrangement. This loan replaces existing financing while adding no new long-term debt or equity to the balance sheet.
Due to a lengthy negotiation process for this financing, the lack of working capital meant TMC was not able to make all planned shipments in the fourth quarter. This
will mean a revenue shortfall for TMC and a larger-than-expected fourth quarter loss. The new influx of working capital will allow TMC to rescheduled these orders
for shipment in the fiscal 2000. Fourth quarter revenue and profit for the Canadian-based IPS machine vision systems division have not been impacted and remain on
target.
Terry Clark, CFO of IPS Automation, pointed out ''The deficiency of working capital prevented TMC from filling its large order backlog. We're very pleased to be
able to resolve this issue and get on with the business of fulfilling customer orders.''
''One of the important challenges we faced this year was to increase our working capital without raising equity financing, which would be prohibitively dilutive to
shareholders,'' commented Terry Graham, IPS Chairman and President. ''This term financing represents one of the many steps we have taken to fulfill this
challenge.''
IPS Automation is a complete automation systems provider. The company's automated display and inspection (ADI) systems are recognized as the best in the
world. Advanced inspection solutions include bottle-thread (BTI) and auto glass inspection systems developed in close co-operation with key customers. The
Chicago-based TMC division specializes in high-quality, high-speed packaging and cartoning systems.
IPS Automation, an ISO 9001 registered company, is listed on the Toronto Stock Exchange under the symbol IPV and has offices and representatives in Canada,
China, Japan, Korea, The Netherlands, Taiwan and the United States. Blue-chip customers in 23 countries use IPS Automation's solutions.
Copies of our press releases are available on the IPS website at www.ipsautomation.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Image Processing Systems Inc.
Chris Cory or Flora Wood, CEF
Toronto, Ontario
+ 1 416 777 0001 |
