Archive 2002
NovAtel Inc. Reports Financial Results for the Second Quarter 2002
FOR RELEASE 09/08/02 |
Contact: Debora Klaus (403) 295-4566 |
(Calgary, Alberta, Canada, August 9, 2002)- NovAtel Inc. (NASDAQ: NGPS), a global positioning systems manufacturer, today announced results for the second quarter ended June 29, 2002.
Revenues in the second quarter 2002 were CDN $8.0 million (US $5.1 million) compared to CDN $6.5 million (US $4.1 million) in the same period a year ago. The Company is reporting net income for the second quarter 2002 of CDN $295,000 (US $187,000) or CDN $0.04 (US $0.03) per share compared with a net loss of CDN $439,000 (US $278,000) or CDN $(0.06) (US $(0.04)) per share in the same period a year ago.
"The second quarter was not only our fourth consecutive profitable quarter, it was the second largest revenue quarter in our history," said Jon Ladd, President and CEO.
"Our Special Applications segment experienced solid growth primarily due to increased revenues in the precision agriculture market. The Aerospace and Defense segment was up over $1 million, year on year, primarily due to increased engineering service contracts for U.S. aviation programs, LAAS and next generation WAAS, and due to sales into the Japanese MSAS and European EGNOS programs," continued Ladd. "Our Geomatics business segment continued to face challenging market conditions and was down 7% from the second quarter in 2001. Point, Inc., our joint venture with Sokkia Co., Ltd., continues to focus on improving sales and distribution."
"We are pleased with our financial performance for the first half of this year, and we reaffirm our previously issued guidance of 15% revenue growth and $500,000 net income for the full year 2002. However, we currently expect a challenging third quarter, ending September 2002, due to a shift in customer orders into the latter part of the year," concluded Ladd.
The company will have a conference call this afternoon at 4:30 p.m. E.T. Participants may access the NovAtel Inc. conference call by dialing 1-877-323-2092 (North America) or 416-695-9706 (International), reservation number T358853C. This call is also being webcast and can be accessed at NovAtel's web site www.novatel.ca or at www.ccnmatthews.com.
A replay of the conference call will be available until August 15, 2002 by dialing 1-888-509-0081 (North America) or 416-695-9728 (International), or until October 17, 2002 at the web addresses noted above.
NovAtel Inc. is pleased to announce the election of Mr. Jonathan W. Ladd to the Company's Board of Directors at the Annual Shareholders Meeting held July 16, 2002.
NovAtel Inc. designs, markets and supports a broad range of products that determine precise geographic locations using the Global Positioning System (GPS) and is the principal supplier of reference receivers to WAAS ground networks around the world. NovAtel's GPS products are used principally for applications in precision markets such as the surveying, geographic information systems, aviation, marine, mining, machine control, agriculture and precise timing markets. For further information please visit the Company's website at www.novatel.com.
Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, operating results of subsidiaries and joint ventures, establishing and maintaining effective distribution channels, certification and market acceptance of the Company's new products, impact and timing of large orders, pricing pressures in the market and other competitive factors, maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to maintain supply of products from subcontract manufacturers, the procurement of components to build products, and the impact of industry consolidations, together with the other risks and uncertainties described in public filings.
CONSOLIDATED BALANCE SHEETS
(in Canadian $ thousands)
| |
June 29,
2002 |
December 31,
2001 |
| |
______________ |
______________ |
ASSETS |
| |
|
|
| Current assets: |
|
|
|
Cash and short term investments............................................... |
$ 6,061 |
$ 4,794 |
| |
Accounts receivable..................................................................... |
6,211 |
6,050 |
| |
Related party receivables............................................................ |
1,225 |
665 |
| |
Related party notes receivable.................................................... |
1,589 |
1,595 |
| |
Inventories.................................................................................. |
6,167 |
6,562 |
| |
Prepaid expenses and deposits.................................................. |
427 |
286 |
| |
|
Total current assets................................................................. |
21,680 |
19,952 |
|
|
|
| Capital assets.................................................................................. |
2,363 |
2,854 |
| Intangible assets............................................................................. |
2,154 |
2,487 |
Deferred development costs............................................................
|
2,502 |
2,528 |
| Total assets |
$ 28,699 |
$ 27,821 |
| |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| |
|
|
| Current liabilities: |
|
|
| |
Accounts payable and accrued liabilities..................................... |
$ 4,415 |
$ 4,469 |
| |
Related party payables.............................................................. |
952 |
418 |
|
Notes payable............................................................................ |
1,939 |
1,964 |
|
Deferred revenue....................................................................... |
472 |
202 |
|
Provision for future warranty costs............................................ |
354 |
285 |
| |
Capital lease obligation - current portion................................... |
___276 |
___330 |
|
|
Total current liabilities............................................................. |
8,408 |
7,668 |
| |
|
|
| Deferred gain on sale/leaseback of capital assets.......................... |
750 |
814 |
| Capital lease obligation - long-term portion.................................... |
___145 |
___253 |
|
Total liabilities............................................................................ |
9,303 |
8,735 |
| |
|
|
| Shareholders' equity: |
|
|
| Capital stock.................................................................................... |
35,550 |
35,596 |
| Contributed surplus......................................................................... |
13 |
25 |
| Deficit............................................................................................... |
_(16,167) |
_(16,535) |
| Total shareholders' equity............................................................... |
19,396 |
19,086 |
| Total liabilities and shareholders' equity......................................... |
$ 28,699 |
$ 27,821 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Canadian $ thousands, except per share data)
| |
|
|
Three months ended |
Six months ended |
| |
|
|
June 29, 2002 |
June 30,
2001 |
June 29, 2002 |
June 30,
2001 |
| |
|
|
|
|
| Revenues....................................................... |
$ 8,004 |
$ 6,520 |
$ 15,298 |
$ 13,520 |
| |
|
|
|
|
|
|
| Cost of sales.................................................. |
__4,034 |
__3,019 |
__7,636 |
__6,736 |
| |
|
|
|
|
|
|
| Gross profit.................................................... |
__3,970 |
__3,501 |
__7,662 |
__6,784 |
| |
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
| |
Research and development....................... |
1,366 |
1,866 |
2,931 |
3,747 |
| |
Selling and marketing................................ |
1,246 |
835 |
2,049 |
1,764 |
| |
General and administration....................... |
__1,093 |
__1,070 |
__2,122 |
__1,962 |
| |
|
Total operating expenses..................... |
__3,705 |
__3,771 |
__7,102 |
__7,473 |
| |
|
|
|
|
|
|
| Operating income (loss)................................. |
265 |
(270) |
560 |
(689) |
| |
|
|
|
|
|
|
| Interest income............................................. |
18 |
47 |
28 |
98 |
| Other expense.............................................. |
____21 |
___(227) |
___(202) |
_ (143) |
| |
|
|
|
|
|
|
| Income (loss) from continuing operations before income taxes...................................... |
304 |
(450) |
386 |
(734) |
| |
|
|
|
|
|
|
| Provision for income taxes............................. |
_____9 |
____(11) |
_____18 |
_____ 1 |
| |
|
|
|
|
|
|
| Net income (loss)............................................ |
$ 295 |
$ (439) |
$ 368 |
$ (735) |
| |
|
|
|
|
|
|
| Net income (loss) per share (basic) |
_$_0.04 |
_$_(0.06) |
_$_0.05 |
_$ (0.10) |
| |
|
|
|
|
|
|
| |
Weighted average shares outstanding (basic)....................................................... |
7,679 |
7,694 |
7,681 |
7,692 |
| |
|
|
|
|
|
|
| |
|
|
|
|
| Net income (loss) per share (diluted): |
$ 0.04 |
$ (0.06) |
$ 0.05 |
$ (0.10) |
| |
|
|
|
|
|
|
| |
Weighted average shares outstanding (diluted).................................................... |
7,920 |
7,715 |
7,891 |
7,727 |
