NHC announces results for the second quarter and first six months of fiscal 1999
MONTREAL, Quebec, Feb. 24 /CNW/ - NHC Communications Inc. today announced
results for the first six months of fiscal year 1999. Revenues totaled
$6,112,000 for the six-month period ended January 29, 1999, compared to
$6,357,000 for the similar period in 1998.
Sales of new products introduced in the first half of 1999, including
Switchex DVST, and increased sales by the European business unit based in
Paris continued to lessen the impact of the general decline in sales of
connectivity products in North America.
The Company reported net income of $2,000 for the first six months of
1999 compared to a net loss of $476,000 for the same period last year. Net
income for the period includes an income of $422,400 from discontinued
operations, based on performance payments stipulated in the contract of sale
on the disposition of NHC Communications Limited, the Company's former U.K.
subsidiary.
For the second quarter ended January 29, 1999, revenues were $3,323,000,
compared to $3,800,000 for the similar period of 1998. Operating loss from
continuing operations was $155,000, compared to operating profit of $224,000
for the second quarter last year. Net income for the second quarter of 1999
was $23,000, compared to a net loss of $72,000 for the similar period last
year.
''Although our results for the first half of 1999 show an operating loss,
our sales mix indicates a positive trend going forward,'' said Sylvain
Abitbol, President and Chief Executive Officer. ''Particularly satisfying are
the sales of newly-introduced products and the strong performance of the
Southern European business unit, which recorded a 15% increase in sales in the
second quarter compared to 1998.''
NHC has released four new products in the first half of 1999: Switchex
DVS(TM), a leading-edge voice/data switch; Switchex ISP(TM), aimed at Internet
Service Providers; Stakit SF(TM) and Stakit WAN(TM).
''NHC is pursuing its course through the present transition period, and
we are beginning to reap the benefits of our investment in product
development,'' said Mr. Abitbol. ''We expect these products to drive sales for
the coming quarters. Moreover, our cost-cutting measures continue to have a
favourable impact on results.''
NHC Communications Inc. (TSE: 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 Boston, Chicago, New York, Stockton (CA), Paris (France)
and Montreal (Canada).
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 January 29, 1999
(in thousands of Canadian dollars, except per share amounts)
Second Quarter 1999 Second Quarter 1998
------------------------------------------------------------------------
Sales $3,323 $3,800
Gross profit $1,468 $1,757
Operating loss (income)
from continuing operations $(155) $13
(Loss) income from continuing operations $(195) $224
Net income (loss) $23 $(72)
Loss from continuing operations
per share (primary) $(0.02) $0.02
Net income (loss) per share - Primary $0.00 $(0.01)
Net income (loss) per share - Fully diluted $0.00 Anti-dilutive
Shares used in the calculation of the per share amounts:
Primary 12,615,659 12,465,659
Fully-diluted 15,441,291 15,680,500
NHC Communications Inc.
Summary of Unaudited Consolidated Statements of Income
For the Six-Month Period Ended January 29, 1999
(in thousands of Canadian dollars, except per share amounts)
Six Months 1999 Six Months 1998
------------------------------------------------------------------------
Sales $6,112 $6,357
Gross profit $2,763 $2,848
Operating loss from continuing operations $(327) $(246)
(Loss) income from continuing operations $(421) $3
Net income (loss) $2 $(476)
Loss from continuing operations
per share (primary) $(0.03) $0.00
Net income (loss) per share - Primary $0.00 $(0.04)
Net income (loss) per share - Fully diluted $0.00 Anti-dilutive
Shares used in the calculation of the per share amounts:
Primary 12,615,659 12,465,659
Fully-diluted 15,441,291 15,680,500
>>
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For further information: Sylvain Abitbol, President, C.E.O., NHC
Communications Inc., 1-800-361-1965, Fax: (514) 735-8057, Internet:
pr@nhc.com, Web Site: www.nhc.com, or Sylvain Brossard, CA, V.P. Finance
and Corporate Controller, NHC Communications Inc., 1-800-361-1965,
Fax: (514) 735-8057, Internet: s.brossard@nhc.com |
