ShivaSoft Inc -
ShivaSoft has three-month loss
ShivaSoft Inc
SOF
Shares issued 22,010,000
1999-03-17 close $0.77
Thursday Mar 18 1999
Mr. Dilip Kembhavi reports
The company posted revenue for the quarter of $1,033,197 compared with a
year earlier when the company recorded sales of $1,556,725. Revenues from
implementation, extended support, training and consulting, and other sources
accounted for $621,247 or 60.1 per cent of revenue, while revenue from licence
fees accounted for $411,950 or 39.9 per cent of revenue.
The company reported a before tax loss of $1,231,631 compared with income of
$473,483 in the prior year, reflecting increased staffing levels, specifically as
related to the continuing and development and implementation of the company's
products, a dramatically enhanced marketing program and the costs associated
with operating regional sales and support offices in the United States. Likewise,
the company posted an after tax loss of $927,242 or loss per share of 4.2 cents
over net earnings of $246,590 in the same quarter of fiscal 1998 when earnings
per share were 1.5 cents.
Beginning in 1999, the company began using a 12-month straight line amortization
rate for its accumulated capitalized software development costs. As such, an
expense of $216,661 is reflected in the cost of sales for the quarter.
Other notable expenses in the quarter included a sales and marketing expense of
$464,041 to support extensive trade advertising, a new trade show booth, sales
materials, a corporate video and other expenses associated with the set up of an
in-house marketing department. The company also spent $259,031 on research
and development activities
Quarterly Highlights
The following activities were announced or occurred since ShivaSoft's last
earnings announcement:
The company completed a business partnership agreement with ILOG Inc. which
allows ShivaSoft to embed and deploy the ILOG software in its advanced
planning and scheduling products. ILOG is the world's leading provider of
advanced C, C++ and Java software components for graphics and resource
optimization. ILOG was founded in 1987 and now employs more than 460
people in seven countries. ILOG has similar business partnerships with SAP, I2
Technologies, Manugistics and other software companies.
The company began rebranding its products under the trade name TigrSoft.
Where previously the company had marketed its software under the SHIVA and
VISHAL trade names, it has begun selling under the names TigrAPS, TigrTrak,
TigrVision, TigrSteel and TigrALS. The company will ask shareholders at its
annual and special meeting on March 25, to vote on a resolution to change the
corporate name from ShivaSoft Inc. to TigrSoft Inc.
Two new products, TigrVision and TigrTrak were completed in the quarter and
have subsequently been launched at National Manufacturing Week, a large trade
show in Chicago held on March 15. TigrVision is an information centre designed
to provide plant floor information to senior management. TigrTrak is a
manufacturing execution system for updating plant floor information. Both will be
sold as add-ons to the company's planning and scheduling tool.
Sales backlog for the quarter now includes several additional automotive
engagements as well as new business in the discreet manufacturing sector.
Implementation services continued at Freightliner, Burlington Industries, J&L Steel
and others throughout the quarter.
The company successfully recruited 13 new staff members for its offices in
Edmonton, Toronto, Atlanta, Milwaukee and Cleveland. These include four sales
professionals, five application specialists, a human resources recruiter, and two
individuals in support services and training. The company now has 78 full-time
employees, including 35 who were hired since April 1998.
The company began recruiting for several senior executive positions, including
vice-president of sales, chief operating officer and chief financial officer.
Management expects to fill these positions shortly.
To further enhance productivity and specialization, the research and development
team has been split into two distinct groups: product development, which now
employs 14 people and research and development which employs five people.
CONSOLIDATED STATEMENT OF EARNINGS
Three months ended Jan. 31
1998 1997
Revenue
Sales revenue $ 988,173 $ 1,485,174
Other 45,024 70,949
----------- -----------
Total revenue 1,033,197 1,556,123
Cost of sales 801,376 388,398
----------- -----------
Gross profit 231,821 1,167,725
----------- -----------
Operating
expenses 999,411 409,805
Sales and
marketing 464,041 284,437
----------- -----------
Total expenses 1,463,452 694,242
----------- -----------
Earnings (loss)
before income
taxes (1,231,631) 473,483
Provision for
income taxes (304,390) 226,893
----------- -----------
Net earnings
(loss) $ (927,242) $ 246,590
=========== ===========
Earnings (loss)
per share (4.2 cents) 1.5 cents
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
|
