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biz.yahoo.com
IPS Reports Annual Revenue of $15.2 Million in Fiscal 1999
MARKHAM, Ontario--(BUSINESS WIRE)--June 24, 1999--TMC Operations Treated as Discontinued Image Processing Systems Inc. (TSE:IPV - news)- under its trade name IPS Automation - today announced its financial results for the fourth quarter and year-ended March 31, 1999.
At March 31, 1999, IPS had established a process to dispose of Tisma Machinery Corporation (''TMC'') and, as a result of this plan, the financial results of TMC are treated as results from discontinued operations. Continuing operations refer to the core Canadian-based machine vision systems business.
Net sales from continuing operations were $6.5 million in the fourth quarter of 1999 versus $7.1 million in the comparable quarter of 1998. Sales for the full year ended March 31, 1999 were $15.2 million compared to $18.2 million for the previous year. The net loss from continuing operations in the fourth quarter was $237,000, after one-time restructuring charges of $561,000, compared to a fourth quarter loss of $599,000 in 1998. Full year loss from continuing operations was $4.8 million ($4.5 million of which was incurred in the first half of the year due to the Asian crisis) compared to a loss of $1.9 million in 1998. Losses from discontinued operations were $5.9 million for the year-ended March 31, 1999 versus $10.3 million for the year ended March 31, 1998. All costs associated with the disposition of TMC are included in the year ended March 31, 1999 and will not have any impact on the current year.
Ken Wawrew, recently appointed President & CEO, comments ''Our vision business rebounded strongly in the third and fourth quarters of the year and demand has continued strong into our next year with the current order backlog now sitting at over $13 million. The sale of TMC allows management to focus on meeting customer demand in our display inspection and automobile glass markets. Further, the sale refocuses our resources on growing the profitability of the Company. We are forecasting a profitable first quarter.''
The company will hold a conference call to discuss the year-end results on Thursday June 24th at 8:30 am EST. To access the call, local callers should dial 416-641-6689 while long distance callers should dial 1-800-387-0276. No password is required. For information on accessing the playback after the call has finished, please call Investor Relations at 416-777-0001.
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 for display manufacturers. IPS also provides advanced inspection solutions for the automotive glass and brewing industries, developed in close co-operation with key customers.
IPS Automation, an ISO 9001 and International Quality Network (IQNET) certified 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 worldwide use IPS Automation's solutions.
Copies of our press releases are available on the IPS website at www.ipsautomation.com.
Image Processing Systems Inc.
Consolidated Balance Sheet
As at March 31st 1999 1998
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(unaudited) (note)
Assets
Current Assets
Cash and cash equivalents $ 1,823,198 $ 3,136,746
Accounts receivable 5,093,848 8,170,157
Other receivables 948,899 928,453
Inventories 3,169,421 2,784,553
Prepaid expenses 127,532 143,519
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11,162,898 15,163,428
Capital assets 2,581,863 2,759,214
Other assets 1,902,925 1,440,672
Net long-term assets of
discontinued operations 6,485,101 6,436,433
----------- -----------
$22,132,787 $25,799,747
----------- -----------
----------- -----------
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Liabilities
Current Liabilities
Bank loan $ 1,499,744 $ 1,086,389
Accounts payable and accrued
liabilities 8,361,786 5,114,579
Customer deposits 895,301 13,096
Deferred revenue 228,320 204,900
Other liabilities 420,712 322,497
Net current liabilities of
discontinued operations 5,741,688 3,511,010
----------- -----------
17,147,551 10,252,471
Other liabilities 19,826 136,431
----------- -----------
17,167,377 10,388,902
----------- -----------
Shareholders' Equity
Share capital 32,521,256 32,391,995
Deficit (27,555,846) (16,981,150)
----------- -----------
4,965,410 15,410,845
----------- -----------
$22,132,787 $25,799,747
----------- -----------
----------- -----------
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Note: The 1998 Financial Statements have been restated to conform
to current year presentation.
Image Processing Systems Inc.
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
March 31, March 31,
1999 1998 1999 1998
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(unaudited) (note) (note)
Revenue $ 6,525,672 $ 7,140,557 $15,211,320 $18,219,205
Cost of
revenue 3,700,396 3,316,816 8,770,529 7,958,353
----------- ----------- ----------- ----------
Gross profit 2,825,276 3,823,741 6,440,791 10,260,852
----------- ----------- ----------- ----------
Operating expenses
Selling 1,012,902 2,170,293 4,225,710 5,696,518
Marketing 68,487 315,513 610,860 978,046
Engineering, research
and development 589,187 942,193 2,782,960 2,191,758
Finance and
administration1,334,579 917,811 3,637,451 3,202,109
----------- ----------- ----------- ----------
Total
operating
expenses 3,005,155 4,345,810 11,256,981 12,068,431
----------- ----------- ----------- ----------
Operating loss (179,879) (522,069) (4,816,190) (1,807,579)
Non operating
income(expenses)(57,838) (76,479) 44,848 (49,823)
----------- ----------- ----------- ----------
Loss from
continuing
operations
before taxes (237,717) (598,548) (4,771,342) (1,857,402)
Provision for
income taxes - (15,200) - -
----------- ----------- ----------- ----------
Loss from
continuing
operations (237,717) (583,348) (4,771,342) (1,857,402)
Discontinued operations
Loss from
operations (1,871,443) (2,232,514) (2,665,232) (2,397,794)
Writedown of goodwill - (7,929,671) - (7,929,671)
Loss on
disposal (3,138,122) - (3,138,122) -
----------- ----------- ----------- ----------
Loss for
the
period $(5,247,282)$(10,745,533)$(10,574,696)$(12,184,867)
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
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Loss per
share $ (0.26)$ (0.54)$ (0.53)$ (0.76)
Weighted
average
number
of shares 19,902,865 19,745,150 19,859,163 16,046,720
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----------------------------------------------------------------
Note: The 1998 Financial Statements have been restated to conform
to current year presentation.
Image Processing Systems Inc.
Statement of Changes in
Financial Position
Years ended March 31st 1999 1998
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(unaudited) (note)
Cash provided by (used in)
Operating activities
Loss from continuing operations $ (4,771,342) $ (1,857,402)
Items not affecting cash-
Amortization 897,215 506,510
Shares issued as compensation 3,705 2,100
Loss on disposal of capital assets - 52,292
------------ ------------
(3,870,422) (1,296,500)
Net change in non-cash components
of working capital 3,820,834 (3,311,736)
------------ ------------
(49,588) (4,608,236)
------------ ------------
Investing activities
Purchase of capital assets (315,832) (2,393,519)
Investment in other assets (866,285) (1,083,441)
Acquisition of TMC - (9,835,681)
Investment in TMC (483,222) (3,417,207)
------------ ------------
(1,665,339) (16,729,848)
------------ ------------
Financing activities
Issue of share capital net of
issue costs 125,556 19,496,244
Loans advanced to officers and
directors (20,927) (23,185)
Other liabilities (116,605) (302,198)
------------ ------------
(11,976) 19,170,861
------------ ------------
Decrease in cash during the year (1,726,903) (2,167,223)
Cash position, beginning of year 2,050,357 4,217,580
------------ ------------
Cash position, end of year $ 323,454 $ 2,050,357
------------ ------------
------------ ------------
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Represented by:
Cash and cash equivalents $ 1,823,198 $ 3,136,746
Bank loan (1,499,744) (1,086,389)
------------ ------------
$ 323,454 $ 2,050,357
------------ ------------
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Note: The 1998 Financial Statements have been restated to conform
to current year presentation.
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