THIRD QUARTERLY, NINE-MONTH REPORT - NHC
COMMUNICATIONS INC. ANNOUNCES THIRD QUARTER AND NINE
MONTHS RESULTS OF FISCAL 1998
MONTREAL, June 15 /CNW/ - NHC Communications Inc. (NHC) announced today
results for its third quarter ended May 1, 1998. Revenues were $4,314,000, a
decrease of 10% from the corresponding period in 1997. Furthermore, the
Company reported a loss of $407,000 as compared to a loss of $435,000 for the
third quarter of fiscal 1997. For the first nine-months, revenues reached
$13,349,000, a decrease of 2% from the previous year, with a loss of $883,000.
Gross profit for the third quarter was $2,080,000 or 48% of sales as
compared to $2,084,000 or 44% of sales for the same period one year earlier.
Operating expenses decreased to $2,470,000 from $2,505,000 in the same period
last year. Basic loss per share for the quarter was $0.03 same as the
preceding period last year.
''In terms of partnerships, NHC continues to develop key relationships
with industry experts. During the quarter the Company finalized an
international OEM agreement with Dynetcom to actively market NHC's protocol
independent matrix switching technologies'' commented NHC President and CEO,
Sylvain Abitbol. Dynetcom, a renowned pioneer and leader of network
management and integration services, boasts an annual revenue of 50 million
(US). This new opportunity adds to current partnership with Network
Associates, to assist NHC accelerate momentum to further exploit headway made
in introducing NHC's automated switching solutions within lucrative market.
During the quarter, following an extensive review of NHC's lines of
business, plans were put in place to focuse on NHC's most successful
applications of its technologies. Commenting on the results, Abitbol said,
''Our third quarter sales do not yet fully reflect the impact of our strategy.
Significant headway was realized in R & D projects, marketing and sales
activities, which I believe will produce significant results while
restructuring the Company allowing for cost savings of $400,000 annually.''
NHC is well positioned to attain financial milestones in the near future.
''NHC's realignment of business activities has enabled the Company to
initiate its growth strategy of focusing on technical interest and strengths
which have demonstrated the most success in the telecommunications industry,''
said Abitbol. ''We are actively exploring opportunities to increase market
share for our switching products in areas such as Resource Sharing, ISP and
ADSL venues with our solutions specifically adapted for these applications,''
added Abitbol. Substantial resources were invested in a unique electronic
cross-connect solution which facilitates the rapid deployment of xDSL
services. Final testing was completed during the quarter, and is anticipated
to generate much interest in the Telco market.
NHC Communications Inc. (TSE sym: NHC) specializes in developing products
that increase the competitive edge of its customers by applying innovative
technology to the delivery of high-speed mixed media networks. NHC is
committed to its customers by delivering superior solutions for physical layer
network infrastructures. NHC sells through leading resellers supported by
sales locations in Atlanta, Boston, Chicago, Dallas, New York, Stockton (CA)
and Montreal (Canada). Its European subsidiaries are in Paris (France), York
(U.K.).
NHC may be contacted through its web site: www.nhc.com
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NHC COMMUNICATIONS INC.
Summary of Unaudited Consolidated Statements of Income
For the Three-Month Period Ended May 1st, 1998
(in thousands of Canadian dollars, except per share amounts)
Third Quarter Third Quarter
1998 1997
--------------------------------------------------------------------
Sales $ 4,314 $ 4,769
Gross profit $ 2,080 $ 2,084
Operating loss from continuing
operations $ (390) $ (422)
Loss $ (407) $ (435)
Loss per share $ (0.03) $ (0.03)
Shares used in the calculation of the
basic loss per share 12,465,659 12,454,200
NHC COMMUNICATIONS INC.
Summary of Unaudited Consolidated Statements of Income
For the Nine-Month Period Ended May 1st, 1998
(in thousands of Canadian dollars, except per share amounts)
Nine Months Nine Months
1998 1997
--------------------------------------------------------------------
Sales $ 13,349 $ 13,657
Gross profit $ 6,092 $ 6,041
Operating loss from continuing
operations $ (978) $ (181)
Loss $ (883) $ (786)
Loss per share $ (0.07) $ (0.05)
Shares used in the calculation of the
basic loss per share 12,465,659 12,454,200
>
NHC may be contacted through its web site: www.nhc.com
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For further information: Sylvain Abitbol, President, C.E.O., NHC
Communications Inc., 1-800-361-1965, Internet: pr@nhc.com, Web Site:
www.nhc.com; Sylvain Brossard, CA, V.P. Finance and Corporate Controller, NHC
Communications Inc., 1-800-361-1965, Internet: s.brossard@nhc.com |
