AIT Advanced Information six-month results
Wednesday May 12 1999
Mr. Bernie Ashe reports
AIT Advanced Information Technologies' net income was
$76,000 on revenues of $3.3-million for the second
quarter ended March 31, 1999. This compares with
net income from continuing operations of $339,000
on revenues of $4.2-million for the same period last
year, when the company announced two significant
sales with British Airways and the U.S. Department
of State. The company reported a net loss of
$1,064,000 for the second quarter last year.
This is the second consecutive profitable quarter
for AIT. The company generated $926,000 in cash
during the first half of fiscal 1999. Net income
for the first half of the year was $186,000, a 56 per
cent increase over the $119,000 net income from
continuing operations reported for the same period
last year. The company reported a net loss of $2,729,000
for the first half last year. Total revenues for the
first six months were $6.3-million, compared with
$6.6-million for the first six months last year.
Operating income was strong for the second quarter
at $411,000, but after a $147,000 interest expense
and a $188,000 foreign exchange loss, resulted in
the $76,000 reported net income. The company recently
concluded a $2-million working capital financing with
Canadian Imperial Bank of Commerce to replace its
accounts receivable financing facility. This is expected
to significantly reduce AIT's borrowing cost.
''We set out at the beginning of this fiscal year to
return to profitability by concentrating on our
traditional strengths and to pursue growth markets
with our core products and technology,'' said Bernie
Ashe, president and chief executive officer. ''I am
pleased to report that we are achieving what we set
out to do. Our core markets for document issuance
and inspection systems are active, and we are seeing
demand for decentralized digital document issuance
in the consulate market sector.''
With respect to growth markets, the company continues
its marketing focus on providing its PAX Reader as
a solution to improve customer service and reduce
fraud in the airline industry. During the second
quarter AIT commenced a relationship with Airlines
Reporting Corp., (ARC), a company owned by several
U.S.-based airlines, in an effort to introduce the
PAX Reader to the airline industry.
Fiscal 1998 figures have not been adjusted to
reflect discontinued operations.
CONSOLIDATED INCOME STATEMENT
Three months ended March 31
(in thousands of dollars)
1999 1998
Revenues $ 3,294 $ 4,183
Direct costs 1,397 1,885
-------- --------
Gross margin 1,897 2,298
-------- --------
Expenses
Selling, general
and administrative 965 1,160
Research and
development (1) 521 380
-------- --------
1,486 1,540
-------- --------
Net income before
undernoted items 411 758
Unusual items - (378)
Net interest expense (147) (28)
Foreign exchange loss (188) (13)
Net income from
continuing operations 76 339
Net loss from
discontinued
operations - (1,403)
-------- --------
Net income (loss) $ 76 $ (1,064)
======== ========
Earnings per share
From continuing
operations 1 cent 3 cents
Earnings (loss) per
share 1 cent (10 cents)
(1) Fiscal 1998 research and
development costs are net of
$45,000 of investment tax credits.
CONSOLIDATED INCOME STATEMENT
Six months ended March 31
(in thousands of dollars)
1999 1998
Revenues $ 6,292 $ 6,585
Direct costs 2,599 2,900
-------- --------
Gross margin 3,693 3,685
-------- --------
Expenses
Selling, general and
administrative 2,148 2,334
Research and
development (1) 960 840
-------- --------
3,108 3,174
-------- --------
Net income before
undernoted items 585 511
Unusual items - (378)
Net interest expense (215) (37)
Foreign exchange
gain (loss) (184) 23
Net income from
continuing operations 186 119
Net loss from
discontinued
operations - (2,848)
-------- --------
Net income (loss) $ 186 $ (2,729)
======== ========
Earnings per share
From continuing
operations 2 cents 1 cent
Earnings (loss) per
share 2 cents (32 cents)
Note 1 - Fiscal 1998 research and
development costs are net of $90,000
of investment tax credits.
|
