Correction from Tecmar Technologies International Inc.MARKHAM Markham City (pop., 1991: 154,000), southeastern Ontario. It is situated on the Rouge River, northeast of Toronto. Settled in 1794, the town was named for William Markham, archbishop of York. It annexed the nearby township of Markham in 1971. , Ontario--(BUSINESS WIRE)--Jan. 22, 1997--In the news release transmitted earlier today (Jan. 22, 1997) as BW1219 at 10:31 a.m. ET, in the second paragraph second line, it should have read "Revenue for .... from $6.9 million....". The correct and complete version follows: Correction from Source - Tecmar Tecmar was an American manufacturer of PC enhancement products based in the suburbs of Cleveland, OH. The company was founded in 1974 and their first products were data acquisition boards for the first generation of microcomputers. Technologies International Inc. (Previously Known as Legacy Storage Systems International Inc.) Announces Fiscal 1997 Second Quarter Results Tecmar Technologies International Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TTI TTI Texas Transportation Institute TTI Thoracic Trauma Index TTI Transmission Time Interval TTI Travel Time Index TTI Travel Technology Initiative TTI Technology Transfer Initiative TTI Traffic and Traveller Information TTI Technology Transfer Institute ) (previously known as Legacy Storage Systems International Inc. (TSE:LEG) announces results for the quarter ended November November: see month. 30, 1996. (All results are in US $). Revenue for the quarter was $18.1 million compared to $18.8 million for the quarter ended August 31, 1996 and up from $6.9 million for the quarter ending November 30, 1995. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $2.3 million compared to $2.2 million and the net loss was $2.9 million compared to $9.3 million for the quarter ending August 31, 1996. The Tecmar Tape operation revenue was $10.2 million compared to $12.8 million for the previous quarter with an operating loss of $1.7 million compared to $1.2 million for the previous quarter. "We made a strategic decision to reduce distributor inventories of our older products to make room for the new products we have announced and have now begun shipping," said Ernest Er´nest n. 1. See Earnest. H. Wassmann, President and 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. of Tecmar Tape. "Although this strategy negatively affected revenue for the quarter, it has allowed Tecmar to quickly transition to focus on marketing its latest products which are being well accepted in the marketplace." Tecmar has announced several high performance tape products in the past few weeks. The new WangDAT 3900 DDS-3 4mm DAT (1) (Dynamic Address Translator) A hardware circuit that converts a virtual memory address into a real address. See also DAT file. (2) (Digital Audio Tape) A magnetic tape technology used for backing up data. tape drive with 24 GB capacity, 2.4 MB/sec transfer rate sets new standards for 4mm DAT reliability and lowers cost of ownership. Tecmar's entry into the Travan tape drive market, with its Wangtek TS420, cuts backup time in half by incorporating unique features that enhance backup performance while increasing data integrity. The sale of the V1500 and SmartARRAY business was completed in December, 1996, however, a net loss of $0.7 million was sustained by these business units in the quarter ending November 30, 1996. "Storage One, Tecmar's 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. unit, continues to be successful," commented Chairman and CEO of Tecmar, David Killins. "Revenue increased to $7.8 million in the quarter from $5.6 in the last quarter, continuing its sales growth and contribution to the bottom line." Tim Sjoholm, General Manager of Storage One, was enthusiastic. "Our sales have continued to grow as demand for data storage capacity continues to climb." Tecmar Technologies International Inc. is a leading developer and manufacturer of high performance tape data storage technologies. Its product-lines include tape drives and tape backup Using magnetic tape for storing duplicate copies of hard disk files. Users can add an internal or external tape drive to their desktop computers for backup purposes, and files are typically copied to the tapes using a backup utility that updates on a periodic schedule. solutions (tape drives bundled with software). Tecmar Technologies products are sold to Original Equipment Manufacturers (OEMs), distributors and Value added resellers See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). . Its products include Wangtek QIC (Quarter Inch Cartridge) A magnetic tape technology introduced in the early 1980s that has been widely used for backup. It was the first popular tape format for PCs. (Quarter-Inch Cartridge (1) See phono cartridge. (2) A removable storage module that contains magnetic disks, optical discs, magnetic tape or memory chips. Cartridges are inserted into slots in the drive, printer or computer. ) tape drives, WangDAT 4mm (Digital Audio Tape See DAT. (storage, music) Digital Audio Tape - (DAT) A format for storing music on magnetic tape, developed in the mid-1980s by Sony and Philips. As digital music was popularized by compact discs, the need for a digital recording format for the consumer existed. ) drives and ProLine proline (prō`lēn), organic compound, one of the 20 amino acids commonly found in animal proteins. Only the l-stereoisomer appears in mammalian protein. solutions for network environments. -0-
CONSOLIDATED INTERIM BALANCE SHEET - UNAUDITED
November 30, 1996, with comparative figures for 1995
(stated in thousands of United States dollars)
1996 1995
------ ------
ASSETS
Current Assets:
Cash 1,668 1,250
Accounts Receivable 8,516 3,414
Inventory 6,613 3,150
Prepaid expenses and other 2,085 310
------ ------
18,882 8,124
Fixed Assets 3,484 615
Goodwill and other intangibles -- 3,415
Notes receivable -- 2,044
------ ------
22,366 14,198
------ ------
LIABILITIES and SHAREHOLDERS' EQUITY
Current Liabilities:
Bank Indebtedness 3,436 --
Accounts payable and accrued liabilities 9,789 1,642
Obligations under capital leases 173 33
------ ------
13,398 1,675
Obligations under capital leases -- 30
Shareholders' equity
Share Capital 44,991 12,627
Deficit (36,023) (134)
------ ------
8,968 12,493
------ ------
22,366 14,198
------ ------
CONSOLIDATED INTERIM STATEMENT of EARNINGS - UNAUDITED
Three months and six months ended November 30, 1996, with
comparative figures for 1995
(stated in thousands of United States dollars)
Three months Three months Six months Six months
ended ended ended ended
1996 1995 1996 1995
-------- -------- ------- -------
Sales 18,110 6,870 36,877 14,250
Cost of goods
sold 16,166 5,977 32,286 12,797
-------- -------- ------- -------
1,944 893 4,591 1,453
Expenses
General and
administrative 1,299 608 3,254 954
Selling and
marketing 1,966 196 3,696 482
Research and
development 1,006 64 2,156 193
-------- -------- ------- -------
4,271 868 9,106 1,629
-------- -------- ------- -------
Loss before the
following (2,327) 25 (4,515) (176)
Other income (expense)
Interest (80) 54 (104) 93
Amortization of
goodwill -- (26) -- (51)
Loss on disposition -- -- (7,137) --
Reorganization
costs (note 2) (511) -- (511) --
-------- -------- ------- -------
Net income (loss) (2,918) 53 (12,267) (134)
-------- -------- ------- -------
Net income (loss)
per common share (0.35) 0.00 (1.46) (0.00)
-------- -------- ------- -------
Weighted average
common shares
outstanding
(note 1) 8,416,121 5,611,000 8,398,153 5,051,886
-------- -------- ------- -------
CONSOLIDATED INTERIM STATEMENT of DEFICIT - UNAUDITED
Three months and six months ended November 30, 1996, with
comparative figures for 1995
(stated in thousands of United States dollars)
Three months Three months Six months Six months
ended ended ended ended
1996 1995 1996 1995
-------- -------- ------- -------
Deficit,
beginning
of period 33,105 230 23,756 3,093
Net loss
(income) 2,918 (53) 12,267 134
Share issue costs -- (43) -- --
Reduction of
stated capital
in respect of
common shares -- -- -- (3,093)
-------- -------- ------- -------
Deficit,
end of period 36,023 134 36,023 134
-------- -------- ------- -------
See accompanying notes to interim financial statements
CONSOLIDATED INTERIM STATEMENT of CHANGES in FINANCIAL POSITION -
UNAUDITED
Three months and six months ended November 30, 1996, with
comparative figures for 1995
(stated in thousands of United States dollars)
Three months Three months Six months Six months
ended ended ended ended
1996 1995 1996 1995
-------- -------- ------- -------
Cash provided
by (used in):
Operations:
Net income
(loss) (2,918) 53 (12,267) (134)
Items not
involving
cash:
Depreciation and
amortization
of fixed
assets 282 38 595 64
Amortization
of goodwill -- 26 -- 51
Loss on disposition -- -- 2,797 --
Changes in non-cash
operating working
capital 3,055 (502) 4,293 (847)
-------- -------- ------- -------
419 (385) (4,582) (866)
Investments:
Purchase of
fixed assets (74) (219) (287) (456)
Increase in
intangible
and other
assets -- (431) -- (432)
Increase in
notes
receivable -- (2,014) -- (2,014)
-------- -------- ------- -------
(74) (2,664) (287) (2,902)
Financing:
Issuance of
common shares 103 11 164 392
Decrease in
obligations
under capital
leases (42) (8) (124) (15)
Sale of fixed
assets 83 -- 83 --
Share issue costs -- 43 -- --
-------- -------- ------- -------
144 46 123 377
-------- -------- ------- -------
Decrease in cash 489 (3,004) (4,746) (3,391)
Cash, beginning
of period (2,257) 4,254 2,978 4,641
-------- -------- ------- -------
Cash, end of
period (1,768) 1,250 (1,768) 1,250
-------- -------- ------- -------
Cash is defined as cash less bank indebtedness
See accompanying notes to interim financial statements
-0- Notes to Consolidated Interim Financial Statements - Unaudited November 30, 1996 1. Share consolidation and name change On October 2, 1996, the shareholders approved a change in the name of the Corporation from Legacy Storage Systems International Inc. to Tecmar Technologies International Inc. (TSE: "TTI") and the company effected that change on January 8, 1997. Also on October 2, 1996, the shareholders approved the consolidation of the issued and outstanding common shares and Class B Preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. on a 10 for 1 basis. The company effected this change on November 1, 1996. The weighted average number of shares have been restated retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin to give effect to this consolidation. 2. Loss on Disposition and Reorganization costs During the three month period ended November 30, 1996, the Corporation decided to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. of the Canadian systems operations which principal businesses are the manufacture and distribution of disk array subsystems and the V1500 storage servers. As a result of this decision, the estimated loss on disposition was reflected in the financial statements for the three months ended August 31, 1996, including the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of inventory and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and facility costs. The disk array subsystem A unit or device that is part of a larger system. For example, a disk subsystem is a part of a computer system. A bus is a part of the computer. A subsystem usually refers to hardware, but it may be used to describe software. business was sold to a corporation controlled by John Whyte a former owner of Legacy Manufacturing Corp., a subsidiary of the Corporation. The V1500 storage server business including the shares of Quasarmetrics Inc. (the holder of the V1500 technology license) was sold to a corporation controlled by Donald Waugh and The Institute for Space and Terrestrial Dealing with the earth. See terrestrial link. Science, former owners of Quasarmetrics Inc. These sales were completed during December 1996 for cash proceeds. In addition, as part of the consideration for the disposal of the Storage Server business, performance based shares held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. , were returned to the company and subsequently canceled. The company has provided $511,000 for the expected costs of reorganization of its tape business manufacturing in the three months ended November 30, 1996. 3. Comparative figures With the acquisition of Tecmar Technologies Inc. (formerly Rexon Incorporated ("Rexon")) on March 4, 1996, there has been a significant increase in the Company's activities 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. . The historical comparative figures included in these financial statements have been restated in U.S. dollars using a translation method of convenience by which amounts previously stated 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 have been converted to U.S. dollars using a rate of $.7349 without any other effects on previous results stated in Canadian dollars. CONTACT: Tecmar Technologies International Inc. David Killins, 905/475-1077 Ext. 225, 905/475-1088 (FAX) dave_killins@tecmar.ca http://www.tecmar.ca or John Thornton John Thornton is the name of:
john_thornton@tecmar.ca http://www.tecmar.ca |
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