BCB ANNOUNCES NINE MONTHS RESULTS
Revenues up 53% Year over Year
July 27, 1999 - MARKHAM, ON - BCB Voice Systems Inc. (BIV- Alberta Stock Exchange) today announced that sales revenue for the nine months ended June 30, 1999, as reflected in the enclosed financial statements, was $2,190,602 compared to $1,430,963 for the same period a year ago, a 53% increase. Quarterly revenues this fiscal year have improved from $569,000 in the first quarter to $639,772 in the second and, now, to $981,830 in the third, BCB's best single quarter, to date. Gross profit, totaling $927,109 for the latest nine months, continues to hold in the 40 - 45% margin range. For this quarter, the company has made a change in its accounting policies to further break down expenses and make the financials easier to interpret for shareholders. Rather than listing Development, Selling and Administrative Expenses as one line item, BCB is now reporting three separate line items for Sales and Marketing, Software & Product Development and Administration. Over the past nine months, software and product development spending totaled $510,793, representing 23% of sales.
Administration expenses increased by $743,627 over the latest nine-month period. Ken Murton, Chairman of BCB stated, "Operating costs and the loss from operations increased over last year, as expected, while the Company continues to build an infrastructure capable of generating and supporting the significant growth we are beginning to experience."
In addition, Murton continued, "Over the last three months we commercialized BCB's CourtFLOW and have been advised that we will receive a contract for installation of CourtFLOW in three courtrooms in North Dakota. We're expecting a contract for installation of our MURF system in the Danish legislative assembly. The team of BCB and Data General (Canada) was awarded its first hospital contract, this being for a hospital in Cranbrook, British Columbia. On June 8th, BCB announced an agreement with Oceania, Inc. of Redwood City, California, under which Oceania has selected BCB's VoiceFLOW as the dictation workflow component of Oceania's Wave Clinical Information Systems. In partnership with Unisys Canada Inc., BCB has begun preliminary work testing our Court Recording Application and Equipment for Ontario's Integrated Justice Project. Our revenue stream is expanding sharply. We expect to announce substantial new courtroom, legislative assembly, healthcare, and other businesses and alliances for the current quarter.
BCB is pleased to announce its Investor Relations contract with CEF Inc. of Toronto. This agreement has been active since November 1998 and grants CEF a monthly retainer as well as additional incentive related to BCB's share price. This indirect equity may generate a quarterly bonus, payable in cash, based on the price appreciation of BCB shares above a baseline price which was the closing price at the time the agreement was executed. Any price increase for which CEF receives a bonus establishes the new baseline price and no bonus is paid unless the highest baseline price is exceeded. The agreement runs for two years from November 1998, and can be extended with the written consent of both CEF and BCB. Among other areas of expertise, CEF has been active in respect of BCB's current application for trading of its shares in the USA.
Effective July 23, 1999, Tom Doherty is no longer a member of the BCB Board of Directors. Mr. Doherty, coincidental with his resignation from Lernout & Hauspie Speech Products N.V., also resigns from BCB's board to pursue other opportunities as co-owner of Argus Management. BCB would like to thank Mr. Doherty for his time and dedication to the company and wish him all the best in his future endeavours.
In business since 1992, BCB Voice Systems Inc. has developed, and is now marketing, a new generation of Internet-ready voice recording and management systems. This is enabling the Company to win a growing share of a more than US$1 billion market. The Company is now supplying solutions to end-users ranging from individual medical and legal practices to large hospitals, legislative assemblies, courthouses and general business. BCB has formed a number of key alliances and is currently integrating its technology with leading voice recognition, case management, document management and medical workflow software.
For more information contact:
Peter Vanderlee, President Flora Wood, Investor Relations
And Office of the CEO CEF
905 948-8266 ext. 204 1-877-699-9166
The Alberta Stock Exchange has neither approved nor disapproved the information herein.
BCB Voice Systems Inc.
Consolidated Statements of Operations (Unaudited)
Nine Months Ending June 30 1999 -1999- -1998-
Sales $2,190,602 $1,430,963
Cost of Sales 1,263,493 783,522
----------- ----------
Gross Profit 927,109 647,441
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Overhead Expenses
Sales and Marketing 1,221,609 924,360
Software & Product Development 510,793 388,493
Administration 1,244,023 500,396
Depreciation & Amortization 255,000 418,659
------------ ----------
Total Overhead Expenses 3,231,425 2,231,908
------------ ----------
Loss From Operations (2,304,316) (1,584,467)
Interest Expenses 191,035 107,482
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Net Loss For The Period Before
Investment Adjustment ($2,495,351) ($1,691,949)
------------ ----------
Investment Loss Realized 400,639
------------ ----------
Net Loss For the Period ($2,895,990) ($1,691,949)
------------ ----------
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Net Loss Per Common Share Issued ($0.50) ($0.48)
BCB Voice Systems Inc.
Statement of Changes in Financial Position (Unaudited)
Cash Provided (Used)
Nine Months Ending June 30, 1999
Cash Derived From (Applied To) -1999- -1998-
Operating
Net Loss ($2,895,990) ($1,691,949)
Depreciation & Amortization 255,000 418,659
Investment Write Down 400,639 0
----------- -----------
(2,240,351) (1,273,290)
----------- -----------
Change In Non Cash Working (1,372,979) (388,447)
Capital
----------- -----------
(3,613,330) (1,661,737)
----------- -----------
Financing
Net Equipment Loans 0 (31,326)
Accrued Interest on Convertible 7,997 0
Debenture
Net Proceeds-Notes/Warrents 2,858,796 2,739,428
Offering
Net Proceeds-Sales 1,239,361
of Investment
Conversion of Note to Equity (220,000)
Net Proceeds Share Issuance 330,638 1,201,506
----------- ------------
4,216,792 3,909,608
----------- -----------
Investing
Fixed Assets (270,598) (50,223)
Deferred Development (366,175) (465,304)
Royalty Prepayment 0 (586,120)
----------- ------------
(636,773) (1,101,647)
----------- ------------
Net Increase(Decrease in Cash) (33,311) 1,146,224
Opening Cash (Loans) (690,824) (26,115)
----------- ------------
Closing Cash (Loans) ($724,135) $1,120,109
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Contact:
Peter Vanderlee, President
And Office of the CEO
905 948-8266 ext. 204
or
Flora Wood, Investor Relations
CEF
1-877-699-9166
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