DALSA Corporation: Interim Report to our Shareholders For the First Quarter Ended March 31, 1998.WATERLOO Waterloo, town, Belgium Waterloo (vä`tərlō), commune (1991 pop. 27,860), Walloon Brabant prov., central Belgium, near Brussels. The battle of Waterloo (see Waterloo campaign) was fought just south of there on June 18, 1815. , Ontario--(BUSINESS WIRE)--May 5, 1998--Dr. Savvas G. Chamberlain Chamberlain may refer to:
TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSA (1) (Directory Server Agent) An X.500 program that looks up the address of a recipient in a Directory Information Base (DIB), also known as white pages. It accepts requests from the Directory User Agent (DUA) counterpart in the workstation. .), reports first quarter results to shareholders. Introduction I expect 1998 to be another profitable year of technical advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. and growth for DALSA. The opportunities are there but there are also challenges for us to overcome. One of our biggest challenges as we grow is to be sure that we are identifying and focusing our efforts on the right opportunities. The keys to meeting this challenge are; investing in the growth of our people, maintaining our technology leadership, serving the customer/market and maintaining effective management and key business processes. Financial Results For the three months ended March 31, 1998, DALSA had net income of $829,000, or $0.15 per share, on revenues of $6.6 million as compared to net income of $678,000, or $0.12 per share, on revenue of $5.3 million in the same period in 1997. This represents a 23 percent increase in revenues, and a 22 percent increase in net income. Standard product sales for the quarter were $5.6 million, an increase of 36 percent over the same quarter in 1997 and a decline of 15 percent compared to the fourth quarter of 1997. This revenue decline in the first quarter is consistent with the seasonality that DALSA has experienced in prior years. Revenue from application specific contracts for the quarter was $927,000 as compared to $1.2 million for the comparative quarter in 1997. Operating Review The advances made by DALSA in its core technologies during 1997 have been incorporated in new products being introduced in 1998. Five new cameras covering our three core technologies (line scan, advanced line scan and area scan) were introduced this year. Each of the cameras features increased speed and includes features such as antiblooming, CE compliance and 100 percent fill factor. Each of these cameras represent significant performance advances in their targeted markets. The area scan cameras (Motion Vision) are designed for in process inspection applications such as semiconductor, electronics and food inspection. The advanced line scan camera is focused on applications requiring very high speed in low light conditions such as web inspection, semiconductor inspection and document management. The line scan cameras are targeted at the mid market industrial machine vision market. I am confident and excited about the long term growth opportunities for DALSA from its current product lines and with the introduction of these new products. However, there are indications of a slowing of industrial growth in 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). and Japan. If these regions do
begin to experience recession it will impact the level of capital
expenditures this year, including vision products such as DALSA's
cameras. Related to this situation is a reduction in the projected
growth rate of the semiconductor market to 7 percent from 30 percent in
1997. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10 percent of DALSA's revenues are derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the semiconductor market. Over the next quarter we will be watching for any tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. signs of reduced revenue growth and will react accordingly to maintain DALSA's short term and long term profitability. We continue to target investment in R&D at 20 percent of revenue. Our scientists are working on a number of projects targeted at further advancing the speed of our cameras while adding features such as bi-directionality, multiple outputs, colour, and antiblooming which add value to customer applications. Our work on CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. imagers is proceeding well as we continue to construct technology building blocks that will allow future product development of CMOS imagers for the low end industrial markets. DALSA is a leader in the design, development, manufacture and marketing of image sensor An image sensor is a device that converts a visual image to an electric signal. It is used chiefly in digital cameras and other imaging devices. It is usually an array of charge-coupled devices (CCD) or CMOS sensors such as active-pixel sensors. and electronic camera products based on its high performance image capture charge-coupled device See CCD. (electronics) charge-coupled device - (CCD) A semiconductor technology used to build light-sensitive electronic devices such as cameras and image scanners. CCDs can be made to detect either colour or black-and-white. (CCD CCD in full charge-coupled device Semiconductor device in which the individual semiconductor components are connected so that the electrical charge at the output of one device provides the input to the next device. ) technology. DALSA's CCD image sensor silicon chips and electronic cameras provide advanced technological solutions for a broad range of industrial vision applications including postal Postal can refer to:
1. the act of examining by passing over an area or organ with a sensing device. 2. scanning speech. , cheque/banknote scanning, semiconductor inspection, electronics inspection, glass bottle and product inspection and textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. inspection. DALSA shares are traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . (Trading Symbol Trading symbol See: Ticker symbol - DSA) A number of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. statements are forward looking and involve risks and uncertainties. Such risks include uncertainties on the timing of standard product sales and deliveries to our 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 customers. Possibilities of challenges from the Company's competition also exist. We are ready to face such potential challenges. The management and employees of our company are working hard and smart and are enthusiastic about DALSA's growth prospects. -0-
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(thousands of dollars, except per share amounts)
Three months ended
March 31
1998 1997
----------------------
Revenue
Standard product sales $5,625 $4,132
Application specific contracts 927 1,200
----------------------
Total revenue 6,552 5,332
----------------------
Expenses
Cost of products sold 2,625 1,984
Research and development 1,166 1,086
Selling, general and administrative 1,644 1,356
----------------------
Total expenses 5,435 4,426
----------------------
Income from operations 1,117 906
Interest income (expense), net 199 120
----------------------
Income before income taxes 1,316 1,026
Income taxes 487 348
----------------------
Net income $829 $678
Retained earnings, beginning of period 9,703 6,269
Dividends - -
----------------------
Retained earnings, end of period $10,532 $6,947
----------------------
Earnings per share $0.15 $0.12
----------------------
Weighted average number
of shares outstanding ('000) 5,617 5,602
----------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
(thousands of dollars)
Three months ended
March 31
1998 1997
----------------------
OPERATING ACTIVITIES
Net income $829 $678
Add non-cash items
Depreciation 450 316
Deferred income taxes (68) 23
Changes in operating assets
and liabilities 901 421
----------------------
Cash (used in) provided
by operating activities 2,112 1,438
----------------------
INVESTMENT ACTIVITIES
Decrease in sales type lease receivable - 38
Property and equipment additions (1,258) (1,143)
----------------------
Cash (used in) investment activities (1,258) (1,105)
----------------------
FINANCING ACTIVITIES
Issuance of share capital 3 90
Decrease (increase) in due from employees 9 (61)
----------------------
Cash provided by financing activities 12 29
----------------------
Net (decrease) increase
in cash resources 866 362
Cash resources, beginning of period 17,003 16,189
----------------------
Cash resources,
end of period $17,869 $16,551
----------------------
CONSOLIDATED CONDENSED BALANCE SHEET
(thousands of dollars)
March 31 December 31
1998 1997
----------------------
ASSETS
Current assets
Cash and marketable securities $17,869 $17,003
Accounts receivable
and accrued revenue 5,007 6,556
Inventory 3,773 3,486
Prepaid expenses 421 276
----------------------
Total current assets 27,070 27,321
Deferred income taxes 500 538
Property and equipment 7,726 6,918
----------------------
Total assets $35,296 $34,777
----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $5,099 $5,411
Deferred revenue 489 384
----------------------
Total current liabilities 5,588 5,795
Deferred income taxes 92 198
----------------------
Total liabilities 5,680 5,993
----------------------
Shareholders' equity
Share capital 19,084 19,081
Retained earnings 10,532 9,703
----------------------
Total shareholders' equity 29,616 28,784
----------------------
Total liabilities
and shareholders' equity $35,296 $34,777
----------------------
CONTACT: DALSA Corporation Savvas G. Chamberlain or James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. M. Hill, 519/886-6000 or DALSA Web site www.dalsa.com |
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