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

To: Gordo who wrote (434)	3/8/1999 9:18:00 AM
From: lwk	Read Replies (1) \| Respond to of 568

Q-MEDIA'S RECORD SECOND QUARTER EXCEEDS EXPECTATIONS VANCOUVER, BC-- Q-Media Services Corporation today announced record results for the second quarter of fiscal 1999, including a revenue increase of 143% and operating earnings growth of 246% compared with the same period last year. Second Quarter Highlights: (three months ended January 31, 1999 compared with three months ended January 31, 1998) * Revenues were $27.5 million compared with $11.3 million, an increase of 143%. * EBITDA(1) were $2.7 million compared with $1.1 million, an increase of 145%. * Net earnings were $1.4 million compared with a net loss of $7.3 million(2). * Net earnings per share were $0.13 basic and $0.08 fully diluted compared with a net loss per share of $0.90(2) basic and fully diluted. Six Months Highlights: (six months ended January 31, 1999 compared with six months ended January 31, 1998) * Revenues were $54.3 million compared with $19.2 million, an increase of 183%. * EBITDA(1) were $5.8 million compared with $2.1 million, an increase of 176%. * Net earnings were $3.0 million compared with a net loss of $6.7 million(2). * Net earnings per share were $0.29 basic and $0.17 fully diluted compared with a net loss per share of $0.87(2) basic and fully diluted. Robert M. Lawrie, President, said that although the second quarter and year-to-date revenues and earnings were substantially ahead of budget, we expect to return to our normal revenue pattern for the next two quarters. The second quarter, which includes the seasonally-slower holiday season was boosted by outstanding results in December, the strongest month in company history. Integration of Q-Media's newest facility at Irvine, California is proceeding well, Mr. Lawrie added. The Company recently completed the transition at Irvine to the same back office management information system used by its other units. He noted that the Irvine operation includes a higher volume of lower gross margin work than is normally processed by Q-Media but that the operation successfully achieves the Company's profit expectations. Overall company gross margins continue to reflect integration activity following an acquisition and are expected to improve as Irvine and the two recently-added CD-ROM manufacturing facilities mature. Mr. Lawrie said that response to Q-Media's expanded CD-ROM capacity continues to be highly positive. The Company's two newest CD-ROM manufacturing facilities in Austin and Seattle are functioning well and management is preparing to add a fourth facility by this summer to keep up with the growing demand. The outlook for the remainder of the year is for continued robust revenues and earnings growth. Q-Media Services Corporation is a leading outsourced service 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. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Marla Gale or Jon W. Kieran, Investor Relations (416) 868-1079 Hume, Kieran Inc. -------------------------- 1 Earnings before interest, taxes, depreciation and amortization (EBITDA). 2 Net earnings and net earnings per share for fiscal 1998 were restated to reflect a change in goodwill policy.