35% Increase in MDSI's Software and Services Revenue Fuels a Profitable Start to 2003.Business Editors/High-Tech Writers RICHMOND, British Columbia--(BUSINESS WIRE)--April 30, 2003 MDSI MDSI Multiple (Destination) Digital Speech Interpolation MDSI Mobile Data Solutions Inc. MDSI Mountain Data Systems, Inc (Boise, Idaho) Reiterates 2003 Forecast, Announces Additional Customer Contract and Legal Proceeding Update MDSI Mobile Data Solutions Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MDSI) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :MMD MMD Movement for Multiparty Democracy (Zambia) MMD Make My Day MMD Merchant Mariner Document MMD Myotonic Muscular Dystrophy MMD Myotonic Dystrophy MMD Mass Median Diameter MMD Metal Matrix Diaphragm ), the leading provider of mobile workforce management Workforce Management (WFM) encompasses all the responsibilities for maintaining a productive and happy workforce. Sometimes referred to as HRMS systems, or even the larger ERP systems (Oracle, PeopleSoft, SAP). There are many software vendors within this space. solutions, earned three cents per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the first quarter of 2003. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Erik Dysthe, MDSI's President, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman, "This was another solid quarter for MDSI(R) and a good first step in meeting our goals of a profitable and high-growth 2003. I am pleased to see the Company continuing to execute well." Total Q1 revenue was $12.3 million, comprised of $7.9 million from software and services, $2.6 million from maintenance and support and $1.9 million from third party products and services. The third party products and services revenue amount included approximately $1.1 million that was attributable to subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts work of third party integrators on a large project. A corresponding, offsetting amount was also included in direct costs, as required under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Excluding this amount, total revenue for Q1 was $11.2 million, slightly better than MDSI's forecast of between $10 million and $11 million, equal to Q4 2002's result, and represented approximately 30% growth over Q1 2002 and approximately 35% growth in software and services revenue. Total gross margin was 56.9 percent (excluding the value of work attributable to the subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. ), down from 57.8 percent in Q1 2002, but equal to the gross margin in Q4 2002. At $5.8 million, total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. was up marginally over $5.5 million recorded in Q1 2002 and approximately flat with $5.9 million recorded in Q4 2002. All of the Company's Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents denominated expenses in Q1 2003 increased as reported in U.S. dollars due to significant weakness in the U.S. dollar during the period. Similarly, foreign exchange loss resulting from translation of non-U.S. dollar denominated items on MDSI's balance sheet amounted to one cent per fully diluted share, included in other expense for the period. MDSI maintained a strong balance sheet during the quarter. At March 31, 2003, the Company's cash balance was $12.5 million, down from $12.8 million at March 31, 2002 and up from $11.0 million at December 31, 2002. The Company continues to have no long term debt. Previously unannounced, MDSI has signed a contract to upgrade a southern Californian gas and electric utility customer to Advantex r7. The customer has approximately 400 mobile workers and provides service to 3 million consumers through 1.3 million electric meters and 775,000 natural gas meters. Advantex(R) will be integrated with the utility's customer information and outage management systems An Outage Management System (OMS) is a computer system used by operators of electric distribution systems to assist in restoration of power. Major Functions of an OMS Major functions usually found in an OMS include: a dummy syndrome in horses; usually pyrrolizidine alkaloses caused by crotalaria poisoning. Affected horses walk compulsively, head press, appear blind and walk into objects. They do not respond to usual external stimuli or commands. and will communicate over a private Motorola RD-LAP network. Since the last quarterly earnings news release, MDSI announced Advantex r7 upgrade contracts with Illinois' largest natural gas distribution company, Nicor, and with the Pacific Northwest's largest natural gas distribution company, NW Natural Gas. In other matters, the Company announced the settlement of certain claims against it in the case of Mobile Data Solutions Inc. v. Citizens Telecom Services Co., L.L.C. in the District Court of Collin County Texas. On April 16, 2003, the Company was informed that its insurer, Chubb Insurance Company, reached an agreement with Citizens to settle Citizens' breach of contract and breach of warranty Ask a Lawyer Question Country: United States of America State: Michigan Probably contract law; I live in Michigan; I ordered a used transition from a company in TX. This part is used; I know it's a crap shoot as to how good it is. claims for $1 million. The Company is not a party to the settlement agreement and the settlement amount is to be paid by Chubb. The settlement agreement preserved the Company's right to appeal the court's ruling that dismissed the Company's claims on summary judgment for lack of sufficient evidence of damages and Citizens' right to appeal the court's ruling that dismissed Citizens' claims of fraud and negligent negligent adj., adv. careless in not fulfilling responsibility. (See: negligence) misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. . The Company intends to pursue its claims against Citizens on appeal. MDSI reiterated its second quarter and full year 2003 forecasts (announced previously and summarized here) and added a forecast for Q3 2003: -- FY 2003: grow total revenues approximately 20 percent over 2002 (from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ), grow software and services revenue approximately 30 percent over 2002, earn between $0.22 and $0.26 per fully diluted share. -- Q2 2003: total revenues of $11 million to $12 million, of which approximately $8 million will come from software and services. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. per fully diluted share is expected to be between $0.04 and $0.05. -- Q3 2003: total revenues of $11.5 million to $12.5 million, of which approximately $8.5 million to $9.5 million will come from software and services. EPS per fully diluted share is expected to be between $0.05 and $0.07. All forecasts exclude revenues and offsetting expenses that MDSI must recognize on a gross basis in connection with work done by third parties. All figures in this news release are unaudited, expressed in U.S. dollars and are prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For more information, unaudited, condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations and unaudited, condensed consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. are presented below. About MDSI MDSI is the largest, most successful and experienced provider of mobile workforce management software in the world. MDSI's software improves customer service and relationships and reduces operating costs operating costs npl → gastos mpl operacionales by allowing companies to manage field resources more effectively. Headquartered in Richmond, BC, Canada, MDSI was founded in 1993 and has approximately 350 employees. The company has operations and support offices in the United States, Canada, Europe and Australia. MDSI services approximately 100 customers and has licensed more than 80,000 field service users around the world. MDSI is a public company traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (MMD) and on NASDAQ (MDSI). www.mdsi-advantex.com. This press release contains statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding: MDSI's expectations regarding the amount and timing of revenues and earnings in future periods; MDSI's expectations regarding the mix of revenues in future periods; MDSI's expectations regarding the amount and adequacy of its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. in future periods; and MDSI's expectations regarding the amount of expenses in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: the possibility that our potential customers will defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. purchasing decisions due to economic, political or other conditions or will purchase products offered by our competitors; risks associated with litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the expenses associated with such litigation; the failure of MDSI to maintain anticipated levels of expenses in future periods and the risk that cost reduction efforts may adversely affect the ability of MDSI to achieve its business objectives; the risks associated with the collection of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ; the risks associated with technical difficulties or delays in product introductions and improvements; product development, product pricing or other initiatives of MDSI's competitors; and other risks and uncertainties detailed in MDSI's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. MDSI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
MDSI MOBILE DATA SOLUTIONS INC.
Condensed Consolidated Statements of Operations
(Expressed in United States dollars)
(Unaudited)
Three months ended
March 31,
---------------------------
2003 2002
---------------------------
REVENUE
Software and services $ 7,850,659 $ 5,807,093
Maintenance and support 2,602,387 2,557,073
Third party products and services 1,852,745 236,390
---------------------------
12,305,791 8,600,556
DIRECT COSTS 5,928,104 3,630,318
---------------------------
GROSS PROFIT 6,377,687 4,970,238
---------------------------
OPERATING EXPENSES
Research and development 1,279,026 1,460,035
Sales and marketing 2,947,943 2,413,893
General and administrative 1,570,066 1,664,442
---------------------------
5,797,035 5,538,370
---------------------------
OPERATING INCOME (LOSS) 580,652 (568,132)
OTHER (EXPENSE) INCOME (252,619) 76,233
---------------------------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE TAX PROVISION 328,033 (491,899)
INCOME TAX EXPENSE (RECOVERY) FROM
CONTINUING OPERATIONS 105,748 (125,700)
---------------------------
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS 222,285 (366,199)
INCOME FROM DISCONTINUED OPERATIONS - 86,415
---------------------------
NET INCOME (LOSS) FOR THE PERIOD 222,285 (279,784)
DEFICIT, BEGINNING OF PERIOD (25,207,038) (23,791,781)
---------------------------
DEFICIT, END OF PERIOD $(24,984,753) $(24,071,565)
---------------------------
---------------------------
Earnings (Loss) per common share
Earnings (Loss) from continuing
operations
Basic $ 0.03 $ (0.04)
---------------------------
---------------------------
Diluted $ 0.03 $ (0.04)
---------------------------
---------------------------
Net Earnings (Loss)
Basic $ 0.03 $ (0.03)
---------------------------
---------------------------
Diluted $ 0.03 $ (0.03)
---------------------------
---------------------------
Weighted average shares outstanding
Basic 8,185,445 8,726,314
---------------------------
---------------------------
Diluted 8,188,548 8,726,314
---------------------------
---------------------------
MDSI MOBILE DATA SOLUTIONS INC.
Condensed Consolidated Balance Sheets
(Expressed in United States dollars)
(Unaudited)
As at
March 31, December 31,
---------------------------
2003 2002
---------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 12,549,244 $ 11,016,945
Accounts receivable, net
Trade (net of allowance for doubtful
accounts $2,497,031; 2002 -
$2,506,614) 7,899,974 6,705,088
Unbilled 3,130,912 5,347,993
Prepaid expenses and other assets 1,126,251 1,552,236
---------------------------
24,706,381 24,622,262
CAPITAL ASSETS, NET 9,489,419 9,798,087
LONG TERM RECEIVABLE 2,749,860 2,749,860
DEFERRED INCOME TAXES 534,640 534,640
---------------------------
TOTAL ASSETS $ 37,480,300 $ 37,704,849
---------------------------
---------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,255,509 $ 1,777,465
Accrued liabilities 3,018,920 3,300,113
Income taxes payable 605,531 602,717
Deferred revenue 8,254,604 7,503,613
Current obligations under capital
lease 1,901,935 2,073,906
---------------------------
15,036,499 15,257,814
OBLIGATIONS UNDER CAPITAL LEASES 1,614,952 1,913,538
---------------------------
16,651,451 17,171,352
STOCKHOLDERS' EQUITY
Common stock 44,281,578 44,208,511
Additional paid-up capital 2,222,128 2,222,128
Deficit (24,984,753) (25,207,038)
Accumulated other comprehensive loss (690,104) (690,104)
---------------------------
20,828,849 20,533,497
---------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 37,480,300 $ 37,704,849
---------------------------
---------------------------
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion