This is what we have been waiting for:
Microstar Software Ltd. Announces Record Year End Sales and Earnings
OTTAWA, ONTARIO--Microstar Software Ltd., a leading provider of
structured information management solutions, today announced its
financial results for the fourth quarter and fiscal year ended
January 31, 1998.
Microstar has increased annual revenues from the previous year by
45 percent achieving revenues for fiscal year 1998 of $6,203,000.
Total expenses for fiscal year 1998 were $5,425,000 compared to
$6,945,000 for the previous year - a reduction of 22 percent.
This growth in revenue, combined with close control of costs, and
adherence to the restructuring vision, has produced net income of
$838,000 for Microstar with earnings per share of $0.27. Compared
to fiscal year 1997, which saw a loss of $2,572,000, and a per
share loss of $0.83, Microstar's positive performance for fiscal
1998 represents a welcome return to profitability.
Results for the fourth quarter of fiscal 1998 show revenues of
$1,347,000 compared to $1,119,000 for the fourth quarter of fiscal
1997; an increase of 20 percent. As well, 1998's fourth quarter
shows total expenses of $1,185,000 - a substantial reduction
compared to fourth quarter 1997 which reported $2,249,000. This
excellent cost-reduction performance represents a drop of 47
percent in total expenses between the two quarters. Earnings per
share for the fourth quarter 1998 are $0.06, a striking
improvement over a per share loss of $0.36 for fourth quarter
1997. This fourth quarter of fiscal year 1998 represents the
fourth consecutive quarter of profitability and increased earnings
per share for Microstar.
Microstar's quarter by quarter performance and the results for
fiscal year 1998 demonstrate its ability to tighten controls while
producing increased revenues. The effectiveness of its end-to-end
solutions strategy, combined with restructuring of its sales and
marketing functions, completes the turn-around picture.
"I am immensely pleased with the company's performance for fiscal
1998. The employees of Microstar are to be congratulated on their
achievement," said Peter Jordan , Microstar's President and CEO.
"In addition, I would like to thank our customers for their
continuing confidence in the company".
About Microstar Software Ltd.
Microstar Software Ltd. provides structured information management
solutions comprised of technology and services for Global 2000
companies. These solutions enable Microstar's customers to
effectively and economically create, manage and distribute their
corporate knowledge assets. The company is recognized for its
innovative standards-based solutions based on SGML and XML.
Microstar's technology expertise includes the development of XML
and SGML tools such as Near & Far(R)Ÿ Designer and the Alfred XML
parser. The company is listed on the Toronto Stock Exchange (MSS).
Information about Microstar Software Ltd. is available on the
World Wide Web at microstar.com.
This news release may contain forward-looking statements relating
to the future performance of Microstar Software Ltd.
Forward-looking statements, specifically those concerning future
performance, are subject to certain risks and uncertainties and
actual results may differ materially.
/T/
Consolidated Balance Sheets
(in thousands)
As at January 31
ASSSETS 1998 1997
---------------------------------------------------------
Current assets
Cash and temporary investments $ 3,066 $ 1,731
Accounts receivable 834 1,310
Unbilled receivables 171 26
Prepaid expenses 77 104
---------------------------------------------------------
4,148 3,171
Recoverable investment tax credits 355 355
Capital assets 488 635
---------------------------------------------------------
$ 4,991 $ 4,161
---------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------
Current liabilities
Accounts payable and
accrued liabilities $ 585 $ 467
Deferred revenue 102 231
--------------------------------------------------------
687 698
--------------------------------------------------------
Shareholders' equity
Share capital 5,876 5,873
Deficit (1572) (2,410)
--------------------------------------------------------
$ 4,304 $ 3,463
--------------------------------------------------------
$ 4,991 $ 4,161
Consolidated Statement of Earnings and Retained Earnings
(in thousands, except per share data)
(unaudited)
Three months ended Year ended
Jan 31 Jan 31
1998 1997 1998 1997
-------------------------------------------------------------
Revenues $ 1,347 $1,119 $ 6,203 $ 4,259
Cost of sales 525 526 2,596 2,017
-------------------------------------------------------------
Gross profit 822 593 3,607 2,242
-------------------------------------------------------------
Operating expenses
Selling, general and
administrative 572 1,481 2,302 3,787
Research and
development 88 242 527 1,141
-------------------------------------------------------------
Total operating
expenses 660 1,723 2,829 4,928
-------------------------------------------------------------
Earnings (loss) from
operations 162 (1,130) 778 (2,686)
Interest revenue 19 13 60 114
-------------------------------------------------------------
Earnings (loss)
before taxes 181 (1,117) 838 (2,572)
-------------------------------------------------------------
Income tax expense 75 - 352 -
Utilization of tax loss
carryforwards (75) - (352) -
-------------------------------------------------------------
Net earnings (loss) 181 (1,117) 838 (2,572)
-------------------------------------------------------------
Opening retained
earnings (deficit) (1,753) (1,293) (2,410) 162
-------------------------------------------------------------
Closing deficit $(1,572) $(2,410) $(1,572) $(2,410)
-------------------------------------------------------------
Basic earnings (loss)
per share $ 0.06 $ (0.36) $ 0.27 $ (0.83) |
