Image Processing three-month results
Image Processing Systems Inc IPV
Shares issued 19,902,503 1999-07-23 close $0.69
Monday Jul 26 1999
Mr. Ken Wawrew reports
Image Processing Systems has posted a profit in its first quarter, which ended June 30, 1999. IPS announced that its first quarter results are a direct result of the rebound in the Asian economy, the restructuring of operations in the previous fiscal year and continued strong sales in Europe and the Americas.
Revenues for the first quarter ended June 30, 1999, were $8.4-million, compared with $2.0-million for the same period last year. Earnings for the first quarter were $820,418, compared with a loss of $1.6-million for the same quarter last year. Fully diluted earnings per share were four cents for the quarter, compared with a 13-cent loss per share in the first quarter of the previous year. The gross profit margin also improved to 52 per cent, from 33 per cent in the previous year's first quarter.
The first quarter revenues represent an increase of $1.9-million over the fourth quarter of the previous year, a growth of almost 29 per cent. The first quarter earnings from continuing operations were a significant improvement over the loss of $234,000 in the fourth quarter of the previous year.
"Our strategy of spreading our sales across Europe, the Americas and Asia, as well as diversifying and broadening our product line, is paying off," comments Ken Wawrew, IPS president and chief executive officer. "Furthermore, we continue to benefit from our corporate restructuring.
"IPS remains focused on meeting the increasing demand in the display inspection market as well as the glass inspection markets, which includes automotive and CRT glass. In addition, we are continuing to pursue business development opportunities for our products on a global level, thereby minimizing our vulnerability to economic weaknesses in any one particular region."
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended June 30
1999 1998
Revenue $ 8,408,665 $ 2,058,850
Cost of
revenue 3,998,600 1,373,138
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Gross profit 4,410,065 685,712
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Operating
expenses
Selling 1,870,436 704,150
Marketing 132,029 299,526
Engineering,
research and
development 1,044,527 700,193
Finance and
administration 618,286 803,762
----------- -----------
Total operating
expenses 3,665,278 2,507,631
----------- -----------
Operating
income (loss) 744,787 (1,821,919)
Non-operating
income 75,631 235,961
----------- -----------
Earnings (loss)
from continuing
operations before
income taxes 820,418 (1,585,958)
Provision for
income taxes - -
----------- -----------
Earnings (loss)
from continuing
operations 820,418 (1,585,958)
Discontinued
operations
Earnings (loss)
from operations - (950,895)
----------- -----------
Earnings
(loss) for
the period $ 820,418 $(2,536,853)
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Earnings (loss)
per share 4 cents (13 cents)
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