Coreco Inc.: Second Quarter Sets Stage for Outstanding Year, Revenues Increase 15 %, EPS Grow 40 %.Business Editors MONTREAL--(BUSINESS WIRE)--Aug. 8, 2000 Coreco Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. .) today announced its results for the second quarter ended June June: see month. 30, 2000, with both top and bottom lines reflecting healthy organic growth. This quarter is the last before the Company begins to report the contribution of Imaging Technology, Incorporated. In comparison with the second quarter in the previous year, revenues increased 15 % to $5,149,837 and net earnings rose 48 % to $1,052,026. On a per-share basis, earnings increased 40 % to $0.14 per share during this period. Net earnings from operations amounted to $975,890 or $0.14 per share - a per-share increase of 27 % from the same period in fiscal 1999. For the six-month period, revenues increased 14 % to $9,802,601, net earnings rose 34 % to $1,840,763 ($0.25 per share versus $0.19 a year ago), and net earnings from operations increased 14 % to $1,798,971 ($0.25 per share versus $0.21 a year ago). The gross profit, R&D expenses as well as sales and marketing expenses were consistent with those of the previous year, representing 64 %, 23 % and 15 % of sales, respectively. This strong performance for both the quarter and the year to date is being driven by sustained OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and demand in all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. markets. During the first six months of fiscal 2000, sales to Asia have grown by 55 %, representing 17.4 % of total revenues, while sales to Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , the
U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of are up by 4 %, 8 % and 22 %, respectively.New products, which accounted for 30 % of all revenues in the second quarter, also continue to reflect strong acceptance by OEM customers. During the quarter, Coreco recorded 14 design-wins, most of which were for the new Viper and Mamba products. Recently, one OEM customer in the flat panel industry completed development and started to ship products, which has resulted in volume orders for Coreco. Effective June 30, 2000, Coreco acquired all of the shares of Imaging Technology, Incorporated ("ITI (Information Technology Industry Council, Washington, DC, www.itic.org) Formerly the Computer and Business Equipment Manufacturers Association (CBEMA), founded in 1916. ITI is a membership organization composed of approximately 30 large high-tech companies. ") for a cash consideration and acquisition costs of US$14,500,000. The Company expects to amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. this amount over a period of between twenty-four and thirty-six months. Since this acquisition took place on the last day of the quarter, the consolidated balance sheet 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. as of June 30, 2000 includes the assets of ITI. With the acquisition of ITI, Coreco gained a complementary product line, a stronger presence in the U.S. and worldwide, and access to a wider customer base. ITI, which recorded revenues of US$15 million in 1999, will begin to have an impact on Coreco's results in the third quarter ending September September: see month. 30, 2000. "This quarter has been one of the most outstanding in our Company's history. Not only did we break $5 million in quarterly revenues for the first time, but we also set a record for 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. growth," commented 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. Keith Keith may refer to: People with the given name Keith:
 `bən), in the Bible, Jacob's eldest son and eponymous ancestor of one of the 12 tribes of Israel. . "This performance
reflects our success in designing and developing new products to satisfy
our customers' needs, while managing our operations to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. earnings.""As we look forward to the end of fiscal 2000, our growth will be driven by the added contribution of revenues and earnings from Imaging Technology. We will also be focused on maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: synergies between our product lines and using our expanded geographic presence, both in the U.S. and worldwide, to serve both new and existing customers. With the strong fundamentals of our business, we are confident that Coreco will deliver substantial revenue and earnings growth both in fiscal 2000 and 2001." Coreco Inc. is a leader in the design, development, manufacturing and marketing of hardware and software for high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" computer vision applications, primarily in the medical imaging, machine vision and industrial inspection markets. With the acquisition of Imaging Technology, Incorporated on June 30, 2000, the Company now employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 160 people and has operations in Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. (QC), Ottawa Ottawa, city, Canada Ottawa (ŏt`əwə), city (1991 pop. 313,987), capital of Canada, SE Ont., at the confluence of the Ottawa and Rideau rivers. Hull, Que. (ON), Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. (BC) and Bedford Bedford, town, England Bedford, town (1991 pop. 75,632), county seat of Bedfordshire, central England, on the Ouse River. It is an important industrial center; diesel engines, pumps, turbines, agricultural machinery, electrical equipment, and transistors (MA), with sales offices in Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and (OH), Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. (MA) and San Juan Capistrano San Juan Capistrano (săn wän kăpĭsträ`nō), city (1990 pop. 26,183), Orange co., S Calif.; inc. 1961. San Juan Capistrano has some manufactures, including aircraft parts, medical apparatus, and boats, but the economy is (CA). Founded in 1979, Coreco's ever-growing success is driven by its commitment to the research and development of value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products to serve the evolving needs of the computer vision market. This press release contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. All figures reported in Canadian dollars 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 unless otherwise indicated.
CORECO INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
Three months ended Six months ended
June 30 June 30
2000 1999 2000 1999
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Sales $5,149,837 $4,464,837 $9,802,601 $8,569,308
Cost of goods sold 1,891,617 1,643,772 3,555,214 3,056,288
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Gross profit 3,258,220 2,821,065 6,247,387 5,513,020
Expenses:
Research and
development
expenditures 1,144,150 941,456 2,236,753 1,814,376
Less research
tax credits (440,771) (411,638) (876,010) (797,304)
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703,379 529,818 1,360,743 1,017,072
Selling and
marketing 728,491 617,864 1,505,050 1,273,211
General and
administrative 395,156 368,018 723,594 718,788
Depreciation and
amortization of
equipment and
leasehold
improvements 121,805 126,539 241,197 242,466
Financial, net (245,687) (122,623) (442,310) (259,108)
---------------------------------------------------------------------
1,703,144 1,519,616 3,388,274 2,992,429
---------------------------------------------------------------------
Earnings before the
undernoted items: 1,555,076 1,301,449 2,859,113 2,520,591
Other charges (*) (114,700) 211,496 (54,400) 422,994
---------------------------------------------------------------------
Earnings before
income taxes 1,669,776 1,089,953 2,913,513 2,097,597
Income taxes 617,750 378,500 1,072,750 728,500
---------------------------------------------------------------------
Net earnings $1,052,026 $711,453 $1,840,763 $1,369,097
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings per share $0.14 $0.10 $0.25 $0.19
Net earnings from
operations (**) $975,538 $817,568 $1,798,621 $1,579,795
---------------------------------------------------------------------
---------------------------------------------------------------------
Net earnings from
operations per
share (**) $0.14 $0.11 $0.25 $0.21
Weighted average
number of shares
outstanding 7,288,969 7,340,663 7,309,739 7,357,852
(*) Includes the amortization of intangibles and other charges.
(**) Excludes the after-tax amortization of intangibles and other
charges.
CORECO INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2000 and 1999
(unaudited)
2000 1999
---------------------------------------------------------------------
Assets
Current assets:
Cash $2,114,975 $304,688
Short term investments - 13,613,764
Accounts receivable 8,689,142 3,237,596
Research tax credits recoverable 2,473,461 1,828,184
Inventories 6,817,177 3,661,798
Prepaid expenses 799,476 89,466
---------------------------------------------------------------------
20,894,231 22,735,496
Capital assets 3,030,112 5,048,281
Investment, at cost 1,482,030 1,482,045
Goodwill 18,325,726 914,348
Future income taxes 48,000 144,000
---------------------------------------------------------------------
$43,780,099 $30,324,170
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $7,397,022 $1,657,198
Income taxes payable 1,641,834 849,042
Dividends payable 182,037 183,421
Payable to Dipix Technologies Inc. - 500,000
Current portion of long-term debt 1,528,106 -
Future income taxes 355,000 226,000
---------------------------------------------------------------------
11,103,999 3,415,661
Long-term debt 6,621,794 -
Future income taxes 234,000 1,259,000
Shareholders' equity:
Share capital 16,230,705 16,389,808
Retained earnings 9,589,601 9,259,701
---------------------------------------------------------------------
25,820,306 25,649,509
---------------------------------------------------------------------
$43,780,099 $30,324,170
---------------------------------------------------------------------
---------------------------------------------------------------------
CORECO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three months ended Six months ended
June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------
Cash flows from operating activities:
Net earnings $1,052,026 $711,453 $1,840,763 $1,369,097
Adjustments for:
Depreciation and
amortization of
equipment and
leasehold
improvements 121,805 126,539 241,197 242,466
Amortization of
goodwill and
acquired software (114,700) 211,496 (54,400) 422,994
Future income
taxes 23,000 24,000 33,000 39,000
Changes in operating
assets and
liabilities (942,563) (1,304,809) (1,000,265) (1,166,402)
---------------------------------------------------------------------
139,568 (231,321) 1,060,295 907,155
Cash flows from financing activities:
Long-term debt
issued 8,149,900 - 8,149,900 -
Dividends paid (183,302) (184,421) (366,635) (184,421)
Repurchase of shares (289,795) (201,683) (348,088) (201,683)
---------------------------------------------------------------------
7,676,803 (386,104) 7,435,177 (386,104)
Cash flows from investing activities:
Cash used for
business
acquisition and
investment (21,018,415) - (21,018,415) (3,671,368)
Purchase of
capital assets (70,420) (317,291) (284,556) (458,061)
Net (purchases of)
proceeds from
disposal of
short-term
investments 15,027,903 891,452 14,845,591 (1,161,318)
---------------------------------------------------------------------
(6,060,932) 574,161 (6,457,380) (5,290,747)
---------------------------------------------------------------------
(Decrease) increase
in cash during the
period 1,755,439 (43,264) 2,038,092 (4,769,696)
Cash, beginning of
period 359,536 347,952 76,883 5,074,384
---------------------------------------------------------------------
Cash, end of period $2,114,975 $304,688 $2,114,975 $304,688
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---------------------------------------------------------------------
Cash position at
the end of the
period is:
Cash 2,114,975 304,688 2,114,975 304,688
Short term
investments - 13,613,764 - 13,613,764
---------------------------------------------------------------------
$2,114,975 $13,918,452 $2,114,975 $13,918,452
---------------------------------------------------------------------
---------------------------------------------------------------------
Supplemental cash flow disclosure:
Cash paid during the period for:
Income taxes - - - -
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