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

To: Paul Dhaliwal who wrote (420)	12/4/1998 9:58:00 AM
From: Lalit Jain	Read Replies (1) \| Respond to of 568

Paul, Q-MEDIA'S NET EARNINGS UP 175% IN RECORD FIRST QUARTER Q-Media Services Corporation today announced record revenues and earnings for the first quarter of 1999. First Quarter Highlights (three months ended October 31, 1998 compared with three months ended October 31, 1997) * Revenues were $26.8 million compared with $7.9 million, an increase of 238%. * EBITDA(1) were $3,060,000 compared with $943,000, up 225%. * Net earnings were $1,614,000 compared with $588,000(2), an increase of 175%. * Net earnings per share were $0.15 basic and $0.09 fully diluted compared with $0.08(2) basic and fully diluted(3). Robert M. Lawrie, President, said both revenues and earnings were ahead of budget for the first quarter of fiscal 1999. The strong growth resulted from vigorous internal expansion combined with Q- Media's acquisition program, which added two new operations in fiscal 1998. Additional push came from strong demand for services at all facilities in addition to several new customer wins, he said. One of the factors that is driving demand is Q-Media's ongoing expansion of its services, including increased CD ROM capacity. During the first quarter, the Company's two new CD ROM manufacturing facilities at Seattle and Austin went into production and are ramping up capacity successfully. As anticipated, gross margins were down marginally during the first quarter, reflecting the addition of operations at Irvine, CA, acquired in July, 1998 as well as startup operations of the new CD ROM facilities. Integration of the Irvine operation is proceeding well and it is performing as expected. In addition, the two new CD ROM facilities should be operating at optimal capacity in the second half of this fiscal year, which should also improve overall profitability. The outlook is for continued strong revenue and earnings growth in fiscal 1999. As in previous years, the second quarter is expected to be somewhat softer than the first quarter because of the holiday slowdown. Q-Media Services Corporation is a leading outsourced provider to the growing software industry. Its full range of services include software replication (CD-ROM and other media), packaging solutions, warehousing and inventory management, and order fulfillment. It operates regional manufacturing facilities in close proximity to customers in North America's major software growth areas: Vancouver, B.C.; Seattle, Washington; San Jose and Irvine, California; and Austin, Texas. 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. 1 Earnings before interest, taxes, depreciation and amortization (EBITDA) 2 Net earnings and net earnings per share for fiscal 1998 were restated according to Q-Media's change in goodwill policy. 3 Per share values reflect the Company's one for five share consolidation -30- FOR FURTHER INFORMATION PLEASE CONTACT: Marla Gale or Jon W. Kieran, Investor Relations (416) 868-1079 Hume, Kieran Inc.