DPS Reports 1997 Results.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)--Feb. 25, 1998-- Digital Processing Digital processing is the process of altering digital data in any form. The most common situations where digital processing is involved are computer graphics and digital audio processing. S(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DPS Minicomputer series from Bull HN. 1. (language, text) DPS - Display PostScript. 2. (language) DPS - A real-time language with direct expression of timing requests. ["Language Constructs for Distributed Real-Time PRogramming", I. .) Digital Processing Systems Inc. today reported financial results for the three months and year ended December December: see month. 31, 1997. Fiscal 1997 consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue increased by 2 percent to $40,367,000 from $39,414,000 in 1996. The Asia Pacific region accounted for the largest percentage growth, increasing by 26 percent over 1996. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales grew by 7 percent, while sales 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). declined
by 19 percent compared with 1996. Gross margin for the year was 52.3
percent versus 52.2 percent in the prior year.
As a result of significant non-recurring charges in the fourth quarter, the Company reported a loss for the year of $2,963,000 or $0.24 per share compared with net income of $5,088,100 or $0.46 per share in 1996. The non-recurring charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9,000,000 related to a 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 approximately $4,600,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc in process research and development resulting from the Company's acquisition in 1997 of substantially all of the assets of Star Media Systems Corporation and an accounting accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of $2,900,000 and legal fees of approximately $1,500,000 relating to a U.S. patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit lawsuit: see procedure; tort. that the Company is currently defending. Without these non-recurring charges, net income for the year would have been $2,704,000 or $0.22 per share. The Company continues to invest in research and development and marketing activities in order to bring leading-edge products to market. Research and development costs increased to $5,119,000, an increase of 62 percent over the prior year. This increase, which includes $600,000 relating to the addition of personnel resulting from the Star Media acquisition, reflects the Company's commitment to new product development, including the upcoming introduction of its real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. editing products and disk recorder recorder, musical wind instrument of the flute family, made of wood, varying in length, and having an inverted conical bore (largest end near the mouthpiece). for the Closed Circuit Television market. Consolidated revenue for the fourth quarter was $10,001,000, a 5 percent decrease from $10,585,000 for the corresponding period in 1996. As forecast by management at the end of the third quarter, sales were flat due to purchasers holding off buying decisions in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the introduction of the DPS real-time editing products. Gross margin was 50.2 percent compared with 50.8 percent in the fourth quarter last year. Loss for the fourth quarter was $5,038,000 compared with net income of $1,279,000 in the same period last year. Without the impact of the non-recurring charges, net income for the fourth quarter would have been $99,513. The reduction in net income reflects the growth of R&D spending by 86 percent over 1996 and increased marketing activities associated with the promotion of multimedia products. The equity loss from the Company's investment in Eyeon Software Inc. was $88,000 in the fourth quarter, versus a loss of $197,000 recorded in the third quarter of 1997. This improvement in Eyeon results reflects the recent introduction of the Digital Fusion Version 2 and Digital Fusion Post compositing software products. The Company's balance sheet remains strong with net working capital of $20,272,000. Cash and 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. deposits at the end of the year were $8,320,000. "Introduction of our real-time editing system and our entry into the Security recording market is imminent Impending; menacingly close at hand; threatening. Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. ," commented Dr. Keith Lucas Keith Lucas FRS (8 March 1879 - 5 October 1916) was a British scientist who worked at Trinity College, Cambridge doing pioneering work in Neuroscience. He was elected a Fellow of the Royal Society in 1913. He was the son of Francis Robert Lucas and K. Lucas. , 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. . "These new products should produce a healthy upturn in sales during the remainder of the year". About DPS - DPS is a leading designer and manufacturer of electronic hardware and software used for creating, editing and processing broadcast-quality video and audio material. The company has four business segments, Studio Products, Desktop Professional Post-Production Post-production occurs in the making of audio recordings, films/movies, photography and digital art, videos and television programs. It is the general term for all stages of production occurring after the actual recording and ending with the completed work. , Desktop Multimedia and Digital Security Recorders. The Company's products are used throughout the world by the computer-based desktop video production industry, television broadcasters and by video production and post-production studios. Visit our web site at www.dps.com. -0-
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(unaudited)
For the three months ended For the twelve months ended
-------------------------- ---------------------------
December 31 December 31
----------- -----------
(unaudited)
1997 1996 1997 1996
----------- ----------- ----------- -----------
Revenue $10,000,972 $10,585,458 $40,367,207 $39,414,326
Cost of
sales 4,980,084 5,205,051 19,241,056 18,829,767
----------- ----------- ----------- -----------
Gross
profit 5,020,888 5,380,407 21,126,151 20,584,559
Interest
income 57,616 179,202 389,800 416,944
Expenses
Marketing 1,907,520 1,677,443 7,128,260 5,877,779
Administration 936,165 1,001,716 4,045,850 3,800,487
Research and
development 1,799,741 964,144 5,119,284 3,166,069
Non-recurring charges
Write-down of
purchased
in-process
research and
development 4,652,000 - 4,652,000 -
Litigation 3,559,481 - 4,343,510 -
----------- ----------- ----------- -----------
12,854,907 3,643,303 25,288,904 12,844,335
----------- ----------- ----------- -----------
Income (loss)
before income
taxes (7,776,403) 1,916,306 (3,772,953) 8,157,168
Provision for
(recovery of)
income taxes (2,827,124) 637,292 (1,381,160) 3,069,068
----------- ----------- ----------- -----------
Net income (loss)
for the period
before equity (4,949,279) 1,279,014 (2,391,793) 5,088,100
Equity loss of
associated
company (88,441) - (571,116) -
----------- ----------- ----------- -----------
Net income (loss)
for the period (5,037,720) 1,279,014 (2,962,909) 5,088,100
Retained earnings,
beginning of
period 10,763,060 7,409,235 8,688,249 3,600,149
----------- ----------- ----------- -----------
Retained earnings,
end of period $ 5,725,340 $ 8,688,249 $ 5,725,340 $ 8,688,249
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings (loss)
per share:
Net Income (loss)
per share
Basic $ (0.40) $ 0.11 $ (0.24) $ 0.46
Fully diluted $ (0.40) $ 0.11 $ (0.24) $ 0.43
Weighted average
number of shares
outstanding
Basic 12,499,175 12,426,832 12,493,905 11,060,112
Fully
diluted 13,173,833 13,074,833 13,173,833 13,074,833
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
For the three months ended For the twelve months ended
-------------------------- ---------------------------
December 31 December 31
----------- -----------
(unaudited)
1997 1996 1997 1996
----------- ----------- ----------- -----------
Cash provided by (used in)
Operating activities
Net income
(loss) for
the period $(5,037,720) $ 1,279,014 $(2,962,909) $ 5,088,100
Amortization 334,277 262,960 1,119,751 574,456
Deferred income
taxes (2,701,409) 109,166 (2,655,054) 71,959
Write-down of
investment in
associated
company 126,662 - 126,662 -
Write-down of
in-process
research and
development 4,652,000 - 4,652,000 -
Equity loss of
associated
company 88,441 - 571,116 -
(Increase) decrease
in non-cash
working capital
balances 3,255,693 (513,730) (1,284,353) (5,546,666)
----------- ----------- ----------- -----------
717,944 1,137,410 (432,787) 187,849
Financing activities
Issuance of
capital stock - 86,750 536,987 24,530,496
Deferred income
tax benefits,
relating to
share issue
costs 41,000 136,006 167,994 (728,994)
Advances from
shareholders,
net - 138,451 - 836,683
Proceeds (repayment)
of long-term
debt, net (21,175) (33,184) (103,756) 84,798
Increase in
long-term debt
relating to
acquisition - - 1,380,500 -
Dividends paid - - - (3,007,000)
----------- ----------- ----------- -----------
19,825 328,023 1,981,725 21,715,983
Investing activities
Capital asset
additions (533,447) (1,517,705) (1,462,152) (5,864,598)
Proceeds from
sale of capital
assets - 256,453 - 256,453
Acquisition of
assets of Star
Media, including
cash of $55,030 - - (6,586,320) -
Investment in and
advances to
associated
companies (191,893) (973,900) (1,256,597) (973,900)
----------- ----------- ----------- -----------
(725,340) (2,235,152) (9,305,069) (6,582,045)
----------- ----------- ----------- -----------
Increase (decrease)
in cash during
the period 12,429 (769,719) (7,756,131) 15,321,787
Cash and short-term
investments,
beginning of
period 8,308,105 16,846,384 16,076,665 754,878
----------- ----------- ----------- -----------
Cash and short-term
investments,
end of period $8,320,534 $16,076,665 $8,320,534 $16,076,665
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
December 31
--------------------------
1997 1996
------------ ------------
Assets
Current assets
Cash and short-term investments $ 8,320,534 $ 16,076,665
Accounts receivable 5,064,434 5,177,378
Investment tax credits receivable 1,413,679 1,295,029
Inventories 9,514,160 7,973,800
Deferred income taxes 1,176,000 180,000
Other 1,546,065 274,030
------------ ------------
27,034,872 30,840,849
Investment in and advances
to associated companies 1,649,559 1,547,620
Deferred income taxes 1,968,095 477,035
Capital assets 8,444,219 6,181,588
------------ ------------
$ 39,096,745 $ 38,726,265
------------ ------------
------------ ------------
Liabilities
Current liabilities
Accounts payable and
accrued liabilities $ 6,762,832 $ 4,038,495
Income taxes payable - 1,258,239
------------ ------------
6,762,832 5,296,734
Long-term liabilities 1,540,490 210,186
Shareholders' Equity
Capital stock 25,068,083 24,531,096
Retained earnings 5,725,340 8,688,249
------------ ------------
30,793,423 33,219,345
------------ ------------
$ 39,096,745 $ 38,726,265
------------ ------------
------------ ------------
CONTACT: Digital Processing Systems Inc. Dr. Keith Lucas, 905/944-4004 E-mail: keith Keith may refer to: People with the given name Keith:
 `kəs), variant of Luke. @dps.com
or Digital Processing Systems Inc. Ken MacKenzie Mackenzie, river, c.1,120 mi (1,800 km) long, issuing from Great Slave Lake, Northwest Territories, Canada, and flowing generally NW to the Arctic Ocean through a great delta. Between Great Slave Lake and Lake Athabasca it is known as the Slave River. , 905/944-4005 E-mail: ken.mackenzie@dps.com |
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