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Technology Stocks : Q/Media Software Corp (QMS.T) -- Ignore unavailable to you. Want to Upgrade?

To: Lalit Jain who wrote (562)	10/31/2000 9:14:31 AM
From: Lalit Jain	Read Replies (1) \| Respond to of 568

Q-Media Reports Results For Fiscal 2000 Vancouver, British Columbia - Tuesday, October 31, 2000, 9:00 AM EST Q-Media Services Corporation today reported results for fiscal 2000. Fourth Quarter Highlights: (three months ended July 31, 2000 compared with three months ended July 31, 1999) * Revenues were $19.8 million compared with $24.0 million. * Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.8 million compared with $2.6 million. * Net earnings were $563,000 compared with $683,000. * Net earnings per share were $0.05 basic and fully diluted, after add-back of convertible debenture interest, compared with $0.07 basic and $0.08 fully diluted. Fiscal 2000 Highlights: (year ended July 31, 2000 compared with year ended July 31, 1999) * Revenues were $92.3 million compared with $101.8 million. * EBITDA were $9.2 million compared with $10.4 million. * Net earnings were $3.6 million compared with $4.5 million. * Net earnings per share before goodwill amortization were $0.39 basic and $0.31 fully diluted, compared with $0.49 basic and $0.34 fully diluted. * Net earnings per share, after add-back of convertible debenture interest, were $0.33 basic and $0.27 fully diluted compared with $0.43 basic and $0.30 fully diluted. Robert M. Lawrie, President, said the Company's decline in revenue from 1999 reflects the reduced business from one customer which experienced a temporary decline in their business and closure of one of the Company's facilities. Despite this reduction in revenue, the Company was able to maintain its key operating margins for the year. Lawrie added that fiscal 2000 was a landmark year for Q-Media because of three major developments. These were: (a) successful development of activities for the acquisition of the software manufacturing operations of Quebecor World Inc., completed at year end; (b) enhancing and expanding key customer relationships which resulted in a new facility being established at Nashville, Tennessee; and (c) closure of a facility and redeployment of the assets to more profitable opportunities. The acquisition of the Quebecor assets was a major development. The two manufacturing facilities, both in the United States, provide Q-Media with a new presence in the northeastern United States. In addition, the Company also secured a $45 million contract over four years from Quebecor, as well as first right of refusal on all CD manufacturing outsourced by Quebecor in North America. Integration of the new facilities is proceeding smoothly. The Company's key customer relationships were further enhanced as, at year end, Q-Media was awarded Microsoft Authorized Replicator status by Microsoft and during the year the Company established a new facility at Nashville, Tennessee to supply Dell's new manufacturing facility. This facility has achieved its ambitious objectives in its first year and continues to perform well. During the year we consolidated our west coast operations which resulted in the closing of the Newark California facility. Although revenues and earnings were negatively impacted to some degree by this decision, the Company was able to maintain several key clients as customer accounts were transferred to other company locations. Other highlights of the year include the expansion of CD ROM manufacturing capacity by approximately 50%, the installation of a manufacturing line at the Irvine, CA, facility which is designed to handle DVD ROM product in the future and significant expansion in capacity to provide customers with internet based fulfillment and order tracking. While demand for DVD ROM replication remains relatively low, the Company is maintaining its position as a technology leader in its industry. With the recent acquisition and the strengthening of our key customer relationships the outlook for fiscal 2001 is highly positive, with continued revenue and earnings growth anticipated. Q-Media Services Corporation operates seven supply chain management facilities located in Vancouver, Canada; Redmond and Fife, Washington; Irvine, California; Austin, Texas; Nashville, Tennessee and Westborough, Massachusetts. These facilities provide complete outsourced supply chain management services to technology customers such as hardware manufacturers in the personal computer industry, content publishers and software publishers. The Company's services include planning and procurement of materials, production and assembly services, and fulfillment and inventory management. Shares of Q-Media Services Corporation are traded on the Toronto Stock Exchange under the symbol (QMS). U.S. S.E.C. exemption: 12g3-2(b) 82-3761. Further information can be found at the web site: www.qmedia.ca. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Jon W. Kieran, Investor Relations (416)868-1079 Hume, Kieran Inc. If you prefer to receive company news releases via e-mail, please advise Zuzana Pravda (zuzana@humekieran.on.ca).