ADD to BW1220, NDS GROUP.Business Editors --(BUSINESS WIRE) ADD to BW1220 (NDS-GROUP) after last graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. xxx which are detailed in NDS' filings with the SEC.
NDS GROUP PLC
UNAUDITED CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE THREE MONTHS ENDED 31 MARCH 2000
3 months to
31 March
Notes 1999 2000
(pound)'000 (pound)'000
Revenues
Conditional access 16,863 26,410
Integration, development & support 3,342 7,628
Licence fees & royalties 4,887 5,450
New technologies - 1,323
Systems sales & other 177 915
------------- -------------
Total revenue from continuing operations 25,269 41,726
Cost of sales
Smart card and changeover provisions (2,597) (8,499)
Integration and development (2,659) (2,182)
Operations (1,631) (3,069)
Royalties (805) (1,648)
Other (1,113) (749)
Total cost of sales (8,805) (16,146)
Gross Profit 16,464 25,579
------------- -------------
Gross profit % 65.2% 61.3%
Operating expenses
Sales & marketing expenses (1,545) (2,568)
Research & development (9,342) (11,952)
General & administration (2,880) (3,909)
------------- -------------
Total operating expenses (13,767) (18,429)
Operating income from continuing operations 2,697 7,150
Interest (net) attributable
to continuing operations (3,301) (215)
------------- -------------
Profit (loss) from continuing
operations before tax and
exceptional items (604) 6,935
Tax on net profit from continuing
operations 156 (2,037)
Profit (loss) after tax
from continuing operations (448) 4,898
Loss after tax from
discontinued operations (3,682) -
Profit (loss) after taxation (4,130) 4,898
Minority interests 3 15 -
Net Profit (Loss) (4,115) 4,898
Earnings (loss) per share 4
--------------------------------------------------- ------------------
..On profit (loss) after Basic (1.1p) 9.3p
tax from continuing Fully diluted (1.1p) 8.9p
operations
--------------------------------------------------- ------------------
..On net profit (loss) Basic (9.8p) 9.3p
Fully diluted (9.8p) 8.9p
--------------------------------------------------- ------------------
Earnings before interest, tax,
depreciation & amortisation 4,030 8,927
Capital expenditure 991 1,766
NDS GROUP PLC
UNAUDITED CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE NINE MONTHS ENDED 31 MARCH 2000
9 months to Year to
31 March 30 June
Notes 1999 2000 1999
(pound)'000 (pound)'000 (pound)'000
Revenues
Conditional access 50,056 74,027 90,504
Integration, development
& support 11,215 17,558 14,457
Licence fees & royalties 17,063 15,750 21,268
New technologies - 2,757 -
Systems sales & other 435 2,269 1,345
------------- -------------- -------------
Total revenue from
continuing operations 78,769 112,361 127,574
------------- -------------- ----------
Cost of sales
Smart card and changeover
provisions (11,167) (23,442) (24,039)
Integration and development (9,861) (8,694) (15,123)
Operations (6,646) (7,392) (8,091)
Royalties (2,231) (4,335) (3,770)
Other (1,114) (1,091) (1,151)
------------- -------------- ------------
Total cost of sales (31,019) (44,954) (52,174)
Gross Profit 47,750 67,407 75,400
------------- -------------- ---------------
Gross profit % 60.6% 60.0% 59.1%
Operating expenses
Sales & marketing expenses (4,679) (6,998) (7,012)
Research & development (26,008) (33,290) (36,050)
General & administration (9,026) (11,761) (13,604)
------------- -------------- ---------------
Total operating expenses (39,713) (52,049) (56,666)
------------- -------------- ---------------
Operating income from
continuing operations 8,037 15,358 18,734
Interest(net)attributable
to continuing operations (9,904) (4,381) (13,205)
Profit(loss)from continuing
operations before tax and
exceptional items (1,867) 10,977 5,529
Tax on net profit
from continuing operations 482 (3,250) (1,428)
------------- -------------- ---------------
Profit (loss) after tax
from continuing operations (1,385) 7,727 4,101
Exceptional gain 2 - 5,192 -
Loss after tax from
discontinued operations (2,835) - (1,627)
------------- -------------- ---------------
Profit(loss) after taxation (4,220) 12,919 2,474
Minority interests 3 (214) (218) (356)
------------- -------------- ---------------
Net Profit (Loss) (4,434) 12,701 2,118
============= ============== ==========
Earnings (loss) per share 4
On profit(loss) after tax Basic (3.3p) 16.5p 9.8p
from continuing operations Fully diluted(3.3p) 15.9p 9.8p
before exceptional gain
----------------------------------------------------- -----------------
On profit before Basic (10.0p) 27.5p 5.8p
minority interests Fully diluted (10.0p) 26.6p 5.8p
----------------------------------------------------- -----------------
On net profit(loss) Basic (10.6p) 27.1p 5.0p
Fully diluted (10.6p) 26.1p 5.0p
----------------------------------------------------- -----------------
Earnings before interest,
tax, depreciation and 11,958 23,184 22,184
amortisation
Capital expenditure 1,519 4,957 3,965
NDS GROUP PLC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2000
30 June 1999 31 March 2000
Notes (pound)'000 (pound)'000
5
Fixed assets
Investments - 191
Intangible assets 32,652 16,818
Tangible assets 34,851 15,817
------------- ---------------
67,503 32,826
------------- ---------------
Current assets
Stocks 33,258 9,575
Debtors - due within one year 75,405 65,855
- due after one year 3,307 217
Cash at bank and in hand 2,690 4,921
------------- ---------------
114,660 80,568
Creditors
Amounts falling due within one year (120,637) (47,955)
------------- ---------------
Net current assets (liabilities) (5,977) 32,613
------------- ---------------
Total assets less
current liabilities 61,526 65,439
Creditors
Amounts falling due after one year (133,540) (12,664)
Provisions for
liabilities and charges (12,120) (7,362)
------------- ---------------
Net assets (liabilities) (84,134) 45,413
============= ===============
Equity capital and reserves
Share capital 6 264 329
Share premium 6 - 117,886
Profit and Loss account (261,416) (248,067)
Capital contribution 133,265 133,265
------------- ---------------
(127,887) 3,413
Non equity capital 42,000 42,000
------------- ---------------
(85,887) 45,413
Minority Interests 3 1,753 -
------------- ---------------
Total capital employed (84,134) 45,413
============= ===============
NOTES
1 Basis of preparation and presentation
These condensed unaudited financial statements are prepared using
the UK GAAP accounting policies adopted by NDS for its annual
financial statements, consistently applied. They do not constitute
statutory accounts. Figures for 30 June 1999 and for the year ended on
that date have been extracted from the consolidated accounts of NDS
Group plc on which the auditors gave an unqualified audit report.
Comparative profit and loss account information is presented in a
manner which reflects the continuing operations of NDS.
2 Exceptional item
The exceptional gain represents the profit on the sale of the
discontinued digital broadcast business, which was sold to Ordinto
Investments, a subsidiary of The News Corporation Limited with effect
from 1 July 1999. The business was sold to Tandberg Television ASA on
14 October 1999.
3 Minority interests
Minority interests represents the earnings and net assets of NDS
Americas Inc., which was consolidated as a controlled non-subsidiary.
On 1 November 1999, the retained earnings of NDS Americas Inc were
paid as a dividend to its owner, a fellow subsidiary of The News
Corporation Limited. On 4 November 1999, NDS acquired ownership of NDS
Americas Inc. for a price which included an immaterial amount of
goodwill; this has been written off against operating profits.
4 Earnings per share
In addition to earnings per share calculated on the basis of net
profit for the period, figures are also presented for earnings per
share calculated on the basis of profit from continuing operations
before exceptional items and profit before minority interests so as to
achieve a more accurate comparison from period to period.
The profits and numbers of shares used in the calculations are as
follows:
Period Profit (loss) from Profit before Net profit
continuing operations minority interests (loss)
before exceptional gain
(pound)'000 (pound)'000 (pound)'000
3 months to
31 March 1999 (448) (4,130) (4,115)
9 months to
31 March 1999 (1,385) (4,220) (4,434)
Year to
30 June 1999 4,101 2,474 2,118
3 months to
31 March 2000 4,898 4,898 4,898
9 months to
31 March 2000 7,727 12,919 12,701
Period Weighted average Fully diluted
shares in issue weighted average shares
3 months to
31 March 1999 42,001,000 42,001,000
9 months to
31 March 1999 42,001,000 42,001,000
Year to
30 June 1999 42,001,000 42,001,000
3 months to
31 March 2000 52,390,333 54,859,839
9 months to
31 March 2000 46,924,647 48,651,432
5 June 1999 Balance Sheet
The June 1999 comparative balance sheet includes balances
attributable to the discontinued digital broadcasting business, which
was sold with effect from 1 July 1999. The book value of assets as at
30 June 1999 which were sold comprised:
(pound)' 000
Intangible fixed assets 14,808
Tangible fixed assets 17,358
Stock 22,397
Debtors falling due within one year 21,273
Creditors falling due within one year (7,910)
Provision for liabilities and charges (2,511)
-------------
Total 65,415
=============
6 Share Capital
On 23 November 1999, NDS issued 10,350,000 Series A ordinary
shares represented by ADR's at a price of US$20 per ADR under an
initial public offering. Net proceeds, after expenses of the issue
amounted to (pound)117.7 million. In the 3 months ended 31 March 2000,
85,015 options over 85,015 Series A ordinary shares were exercised at
an effective average price of $8.27. As at 31 March 2000, the number
of shares outstanding was 52,436,015.
7 US GAAP
Differences in net income between UK GAAP and US GAAP arise out of:
a) different bases of recognition of some subscriber fees as income;
b) the requirement under US GAAP to record a charge against income
in respect of options granted under Employee Share Option Schemes
where no such charge arises under UK GAAP;
c) The treatment of the earnings of NDS Americas Inc prior to its
acquisition by NDS as a minority interest under UK GAAP.
d) The treatment of the purchase of NDS Americas Inc.
A reconciliation of net profit under UK GAAP to that under US GAAP is
as follows:
3 months to 9 months to
31 March 31 March 31 March
1999 2000 1999
(pound)'000 (pound)'000 (pound)'000
UK GAAP: Net profit(loss)
for the period (4,115) 4,898 (4,434)
Adjustments
- subscriber fees 234 (462) 95
- share option scheme - (553) -
- minority interest (15) - 214
- purchase of NDS Americas Inc. - - -
------------- ------------ -------------
US GAAP: Net income(loss) (3,896) 3,883 (4,125)
------------- ------------ -------------
9 months to
31 March Year to
2000 30 June 1999
(pound)'000 (pound)'000
UK GAAP: Net profit(loss)
for the period 12,701 2,118
Adjustments
- subscriber fees 1,065 1,870
- share option scheme (13,014) -
- minority interest 218 356
- purchase of NDS Americas Inc 167 -
------------- ---------------
US GAAP: Net income(loss) 1,137 4,344
------------- ---------------
8 Cashflow
A condensed, consolidated unaudited statement of cash flows for
the 3 months to 31 March 2000 is as follows:
Year to 3 months to
30 June 1999 31 March 2000
(pound)'000 (pound)'000
Operating profit 16,873 7,150
Non-cash operating cost 12,649 1,777
Movement in working capital (54,777) (1,637)
------------- ---------------
Net cash inflow (outflow)
from operating activities (25,255) 7,290
Net interest paid (13,205) (215)
Taxation paid (1,612) -
Purchase of tangible fixed assets (13,334) (1,766)
Purchase of investments - (191)
Issue of shares - 204
Indebtedness with News Corporation 10,546 (10,580)
------------- ---------------
Net cash generated (used) (42,860) (5,258)
Increase (decrease) in overdraft 41,336 -
------------- ---------------
Increase (decrease) in cash (1,524) (5,258)
============= ===============
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