Third Quarter Report
The first nine months of fiscal 1999 for Synex International Inc.
produced increases in revenue, asset base and shareholders equity when
compared to the corresponding period in the previous year. The earnings per
share for the nine months was $0.01 as compared to $0.07 in the previous
fiscal year. The decrease in net income primarily reflects increased
marketing costs for the F9 Professional product line in the Software Division.
During the third quarter, sales of F9 Professional were achieved at each of
the newly formed branch offices and significant increases are expected.
Nine months ended Nine months ended
Mar 31 1999 Mar 31 1998
Revenue $ 4,975,541 $ 4,530,592
Pre-tax Income $ 231,253 $ 870,667
Net Income $ 142,652 $ 780,912
Total Assets $ 21,258,965 $ 20,082,829
Shareholders Equity $ 7,568,443 $ 6,323,546
Shares Outstanding 15,947,583 12,197,583
Earnings per Share $ 0.01 $ 0.07
Synex Energy Resources Ltd.:
The revenue from the Brown Lake Plant was $1.7 million, an increase of 7%
from the corresponding period in the previous year. There was an historically
large snowpack at March 31, 1999, which is expected to result in higher
revenues over the period from April to August as compared to the previous
corresponding period. During the third quarter, a further loan advance was
made to New World Power Corporation under the existing loan agreement with
US$500,000 of the agreed US$1,000,000 now advanced.
Synex Systems Corporation:
The marketing program for F9 Professional was significantly advanced
during the third quarter, including sales from the newly established branch
offices in France and California. The sales of F9 Professional were more than
35% greater than in the corresponding period in fiscal 1998. During the third
quarter of fiscal 1999, F9 Version 4 was released to a majority of the
software accounting vendors with distribution agreements, which is expected to
result in an upsurge of sales. Revenue for the first nine months of fiscal
1999 was $2.5 million, an increase of 9% from the corresponding period in the
previous year.
Outlook:
In February 1999, the Company announced that the Board of Directors and
the major shareholder, Greyvest Capital Inc, believe that the market is
undervaluing the shares of the Company. Trilon Securities Corporation has
been retained to assist with the repositioning of the assets in order to
realize the underlying value in the near-term. The Board of Directors has
authorized the continuation of the repurchase by the Company of a portion of
its shares under a normal course issuer bid.
(signed)
__________________________
Alan W Stephens, President
%SEDAR: 00002435E
-0- 05/20/1999
For further information: Alan W. Stephens (604) 688-8271 Ext. 309, E-mail astephens@synex.com, Web Site www.synex.com
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