Coreco Reports 141% Revenue Growth in Third Quarter.Business EditorsMONTREAL--(BUSINESS WIRE)--Oct. 30, 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 third quarter ended September September: see month. 30, 2000. Third quarter revenues increased 141% to $10,884,532 from $4,510,046 for the same period last year. This quarter is the first to include the contribution of U.S. based 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. ), acquired on June June: see month. 30, 2000. ITI has increased Coreco's presence in the global marketplace by adding a complementary product line, expanding its sales network and providing access to new customers. The gross profit for the quarter amounted to 58.5% of sales compared with 65.6% a year earlier, reflecting the change in product mix as a result of the ITI acquisition. Selling and marketing expenses represented 18.2% of sales versus 15% in 1999, while R&D expenses were consistent with those of the previous year at 12.6% of the top line. Net earnings from operations rose 16% to $1,034,301 from $892,570 a year ago, representing $0.14 on a per-share basis versus $0.12 in 1999. Including recent acquisition related charges of $2.2 million, the Company reported a loss of $1,206,041 or $0.17 per share in this quarter, versus net earnings of $777,918 or $0.10 per share a year earlier. During the quarter, cash flow from operating activities increased by 115% to $3,735,141 from $1,739,201 a year earlier. Working capital increased to $10,507,951 from $6,008,289, net of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, an improvement of 75%. Asia accounted for 15% of total third quarter sales, 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). for
20%, 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 for 3%, and the U.S. for 62%. On a year over year basis,
sales to Asia increased by 166%, while sales to Canada, the U.S. and
Europe were up by 5.4%, 136% and 193%, respectively.By product category, high performance frame grabbers A device that accepts standard TV signals and digitizes the current video frame into a single, bitmapped still image. Frame grabbers can be stand-alone devices that plug into a port on the computer or a function built into the video capture board or display adapter. accounted for 37% of sales in the third quarter, up from 5% a year ago. This is attributed to the ITI product line, which is composed mainly of high performance frame grabbers. In the other product categories, embedded Inserted into. See embedded system. products accounted for 42% of sales, display products for 17% and software for the remaining 4% of sales. Overall, new products accounted for 32% of sales in the third quarter. "These results reflect the initial steps in our integration of the ITI operations," 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. . "In just
three months, we have achieved significant progress in realigning our
operations and our senior management team to reduce overlap o·ver·lapn. 1. A part or portion of a structure that extends or projects over another. 2. The suturing of one layer of tissue above or under another layer to provide additional strength, often used in dental surgery. v. and maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. synergies. Going forward, U.S. sales and marketing will be handled by our 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 operations, while international sales and marketing will be conducted from our 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. office." "We also carried out a strategic review of our distribution channels and products. Our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Asian distribution channels have already been redefined and are in place. On the product side, the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of our hardware products has been completed and we are currently working on integrating our software products." During the third quarter, Coreco achieved 12 design-wins, mostly for applications in high growth areas such as flat panel displays A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time and document imaging. Eleven of the design-wins involved the Company's high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. Viper and Mamba products. "Looking ahead, we will reap further benefits as we continue to integrate our U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations," commented CEO Keith Reuben. "One of our immediate objectives over the next 12 months will be to reduce our operating costs operating costs npl → gastos mpl operacionales , particularly in the areas of sales and manufacturing, so as to bring our gross margin to the 60% range. In the longer term, we will use our increased size and strength to design and develop new products, penetrate new markets and sustain our solid record of growth and earnings." 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 (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 (MA), with additional 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) 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 Nine months ended
September 30 September 30
2000 1999 2000 1999
---------------------------------------------------------------------
Sales $10,884,532 $4,510,046 $20,687,133 $13,079,354
Cost of goods sold 4,515,288 1,550,499 8,070,502 4,606,787
---------------------------------------------------------------------
Gross profit 6,369,244 2,959,547 12,616,631 8,472,567
Expenses:
Research and
development
expenditures 1,796,564 963,675 4,033,317 2,778,051
Less research tax
credits (425,014) (385,547 (1,301,024) (1,182,851)
---------------------------------------------------------------------
1,371,550 578,128 2,732,293 1,595,200
Selling and
marketing 1,981,610 677,200 3,486,660 1,950,411
General and
administrative 925,574 335,431 1,649,168 1,054,219
Depreciation and
amortization of
equipment and
leasehold
improvements 303,144 125,238 544,341 367,704
Financial, net 76,628 (182,486) (365,682) (441,594)
---------------------------------------------------------------------
4,658,506 1,533,511 8,046,780 4,525,940
---------------------------------------------------------------------
Earnings before
income taxes and
undernoted items: 1,710,738 1,426,036 4,569,851 3,946,627
Acquisition-related
charges (*) 2,266,531 211,618 2,212,131 634,612
---------------------------------------------------------------------
Earnings before
income taxes (555,793) 1,214,418 2,357,720 3,312,015
Income taxes 650,248 436,500 1,722,998 1,165,000
---------------------------------------------------------------------
Net earnings $(1,206,041) $777,918 $634,722 $2,147,015
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings per share $(0.17) $0.10 $0.09 $0.29
Net earnings from
operations (**) $1,034,301 $892,570 $2,833,038 $2,468,877
---------------------------------------------------------------------
---------------------------------------------------------------------
Net earnings from
operations per
share (**) $0.14 $0.12 $0.39 $0.33
Weighted average
number of shares
outstanding 7,260,622 7,333,322 7,293,248 7,349,555
(*) Includes the amortization of intangibles related to acquisitions.
(**) Excludes the after-tax amortization of intangibles related to
acquisitions.
CORECO INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2000 and 1999
(unaudited)
2000 1999
---------------------------------------------------------------------
Assets
Current assets:
Cash $4,940,984 $1,255,255
Short term investments - 14,172,399
Accounts receivable 7,278,575 3,170,004
Research tax credits recoverable 2,903,511 1,776,442
Inventories 5,890,392 3,450,098
Prepaid expenses 701,455 175,530
---------------------------------------------------------------------
21,714,917 23,999,728
Capital assets 2,866,510 4,795,037
Investment, at cost 1,482,030 1,482,045
Goodwill 15,959,909 877,315
Other assets 247,600 120,000
---------------------------------------------------------------------
$42,270,966 $31,274,125
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities * $6,489,880 $1,940,309
Income taxes payable 2,292,173 935,398
Dividends payable - 183,333
Payable to Dipix Technologies Inc. - 500,000
Current portion of long-term debt 2,062,913 -
Future income taxes 362,000 260,000
---------------------------------------------------------------------
11,206,966 3,819,040
Long-term debt 6,188,738 -
Future income taxes 261,000 1,211,000
Shareholders' equity:
Share capital 16,230,705 16,389,808
Retained earnings 8,383,557 9,854,277
---------------------------------------------------------------------
24,614,262 26,244,085
---------------------------------------------------------------------
$42,270,966 $31,274,125
---------------------------------------------------------------------
---------------------------------------------------------------------
- Including acquisition-related reserves.
CORECO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three months ended Nine months ended
September 30 September 30
2000 1999 2000 1999
---------------------------------------------------------------------
Cash flows from
operating
activities:
Net earnings $(1,206,041) $777,918 $634,722 $2,147,015
Adjustments for:
Depreciation and
amortization of
equipment and
leasehold
improvements 303,144 125,238 544,341 367,704
Amortization of
goodwill and
acquired
software 2,266,531 211,618 2,212,131 634,612
Amortization of
other assets 13,150 - 13,150 -
Future income taxes 57,000 (14,000) 90,000 25,000
Foreign exchange (40,744) - (40,744) -
Changes in operating
assets and
liabilities 2,342,101 638,427 1,341,836 (527,975)
---------------------------------------------------------------------
3,735,141 1,739,201 4,795,436 2,646,356
Cash flows from
financing
activities:
Long-term debt
issued - - 8,149,900 -
Dividends paid (182,037) (183,421) (548,672) (367,842)
Repurchase of shares - - (348,088) (201,683)
Financing fee (135,000) - (135,000) -
---------------------------------------------------------------------
(317,037) (183,421) 7,118,140 (569,525)
Cash flows from
investing
activities
Cash used for
business acqui-
sition and
investment (444,541) - (21,462,956) (3,671,368)
Purchase of capital
assets (175,079) (46,578) (459,635) (504,639)
Net (purchases of)
proceeds from
disposal of short-
term investments - (558,635) 14,845,591 (1,719,953)
---------------------------------------------------------------------
(619,620) (605,213) (7,077,000) (5,895,960)
Effect of Foreign
Exchange 27,525 - 27,525 -
---------------------------------------------------------------------
(Decrease) increase
in cash during the
period 2,826,009 950,567 4,864,101 (3,819,129)
Cash, beginning of
period 2,114,975 304,688 76,883 5,074,384
---------------------------------------------------------------------
Cash, end of
period $4,940,984 $1,255,255 $4,940,984 $1,255,255
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash position at
the end of the
period is:
Cash 4,940,984 1,255,255 4,940,984 1,255,255
Short term
investments - 14,172,399 - 14,172,399
---------------------------------------------------------------------
$4,940,984 $15,427,654 $4,940,984 $15,427,654
---------------------------------------------------------------------
---------------------------------------------------------------------
Supplemental cash flow disclosure:
Cash paid during the period for:
Income taxes - - - -
Non-cash transactions
Deferred foreign
exchange loss $101,750 - $101,750 -
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion