DPS Reports First Quarter 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)--May 5, 1998--Digital Processing Systems (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 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. Systems Inc. (TSE:DPS) today reported financial results for the three month period ended March 31, 1998. 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 for the first quarter was $10,679,000, an increase of 4 percent from $10,264,000 for the corresponding period in 1997. Net income for the period was $111,000 or $0.01 per share compared to net income of $1,494,000 or $0.12 per share last year. Gross margin was 50.1 percent compared to 53.0 percent in the first quarter of 1997. The reduction in gross margin reflects the increased percentage of sales of multimedia products and amortization expense resulting from the acquisition of software assets of Star Media Systems Corporation in July July: see month. 1997. Total expenses were $5,180,000 compared to $3,312,000 in the same quarter last year. The increase in expenses resulted primarily from the Company's greater investment in research and development projects and expanded marketing activities in the Multimedia business unit. Research and development expenses increased to $1,484,000 from $894,000 last year, an increase of 66 percent, as the Company nears completion of the Perception RT (TM) real-time video editing Real-time video editing is a system of editing video where it takes no longer to render a video than the length of that video clip itself. For example, after a 30 minute length of video is edited it needs to be rendered, and should the system take more than 30 minutes to render the system and of the Digital Detective (TM) video recorder See DVR, DVD-R and DVD drives. for the CCTV CCTV abbr. closed-circuit television CCTV closed-circuit television security surveillance market. As well, development is continuing on 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. 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. editing software, DPS Gravity Gravity The gravitational attraction at the surface of a planet or other celestial body. The quantity g is often referred to simply as “gravity’’ or “the force of gravity’’ of Earth, both of which are incorrect. (TM). The initial public demonstration of the DPS Gravity software will take place at this year's IBC IBC International Building Code IBC Iraq Body Count IBC Institutional Biosafety Committee IBC Inflammatory Breast Cancer IBC International Business Company IBC Independence Blue Cross IBC Insurance Bureau of Canada IBC International Broadcasting Convention trade show in Amsterdam Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. in September September: see month. . "Our first quarter results were in line with our expectations", said 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. , Chief Executive Officer of DPS. "We are looking forward to the introduction in June June: see month. of two major new products and their impact on the Company's revenues. The Company's research and development activities during the past year have been focused on development of Perception RT and on our first security 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). , the Digital Detective. The return on this significant investment will begin to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. in the upcoming quarters." 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, 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 March 31
----------------------------------
1998 1997
--------- -------
Revenue $10,679,430 10,264,156
Cost of sales $ 5,325,811 4,825,140
------------ -----------
Gross profit 5,353,619 5,439,016
Interest income 68,933 153,668
Expenses
Marketing 2,548,328 1,466,652
Administration 1,148,306 950,984
Research and development 1,483,646 893,934
---------- ----------
5,180,280 3,311,570
Income before income
taxes 242,272 2,281,114
Income taxes 90,710 787,548
--------- ----------
Income for the period
before equity in loss of
associated company 151,562 1,493,566
Equity loss of associated
company (40,869) -
--------- -----------
Net income for the period 110,693 1,493,566
Retained earnings,
beginning of period 5,725,340 8,688,248
--------- ----------
Retained earnings,
end of period $5,836,033 $10,181,814
---------- -----------
---------- -----------
Weighted average number
of shares outstanding 12,499,175 12,481,318
Basic earnings per share $ 0.01 $ 0.12
Fully diluted number of
shares outstanding 13,315,833 13,074,833
Fully diluted earnings
per share $ 0.01 $ 0.12
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31
------------------
1998 1997
---- ----
Assets
Current assets
Cash and short-term investments $ 6,816,285 $13,906,098
Accounts receivable 5,907,106 5,482,965
Investment tax credits receivable 1,292,577 725,875
Inventories 10,886,162 10,623,685
Deferred income taxes 1,190,000 360,000
Other assets 1,882,651 828,101
----------- -----------
27,974,781 31,926,724
Investment in and advances to
associated companies 1,649,747 1,547,620
Deferred income taxes 2,015,059 435,035
Capital assets 8,275,866 6,408,801
----------- -----------
$39,915,453 $40,318,180
----------- -----------
----------- -----------
Liabilities
Current liabilities
Accounts payable and accrued
liabilities $ 7,480,254 $ 4,128,264
Income taxes payable - 770,298
----------- -----------
7,480,254 4,898,562
Long-term liabilities 1,531,083 189,271
Shareholders' Equity
Capital stock 25,068,083 25,048,533
Retained earnings 5,836,033 10,181,814
----------- -----------
30,904,116 35,230,347
----------- -----------
$39,915,453 $40,318,180
----------- -----------
----------- -----------
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(unaudited)
For the three months ended March 31
-----------------------------------
1998 1997
---------- -----------
Cash provided by (used in)
Operating activities
Net income for the period $ 110,693 $ 1,493,566
Amortization 390,064 177,100
Deferred income taxes (102,814) (179,850)
Equity loss of associated
company 40,869 -
Increase in non-cash working
capital balances (1,464,846) (3,337,511)
----------- -----------
(1,026,034) (1,846,695)
Financing activities
Issuance of capital stock - 517,437
Deferred income tax benefits 41,850 41,850
Share purchase loans (248,000) -
Repayment of long-term
debt, net (9,297) (21,966)
----------- -----------
(215,447) 537,321
Investing activities
Capital asset additions (221,711) (404,313)
Advances to associated company (41,057) (456,880)
----------- -----------
(262,768) (861,193)
----------- -----------
Decrease in cash during
the period (1,504,249) (2,170,567)
Cash and short-term investments,
beginning of period 8,320,534 16,076,665
----------- -----------
Cash and short-term investments,
end of period $ 6,816,285 $13,906,098
----------- -----------
----------- -----------
-0- CONTACT: Digital Processing Systems Inc. Dr. Keith Lucas, 905/ 944-4004 keith Keith may refer to: People with the given name Keith:
 `kəs), variant of Luke. @dps.comor 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 ken.mackenzie@dps.com |
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