Digital Processing Reports Net Income ahead 25 Percent in 1996 First Half.TORONTO--(BUSINESS WIRE)--Aug. 7, 1996--DIGITAL PROCESSING (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. today reported its first results as a public company. For the six months ended June 30, 1996, revenues increased 42 percent to $19,369,000, from $13,626,000 for the corresponding period last year. Net earnings for the period were $2,507,000, compared with $2,003,000 in the same period of 1995. Earnings per share (basic) were 26 cents, based on a weighted average of 9,737,000 shares outstanding, compared with 21 cents in the first half of 1995, based on 9,375,000 shares outstanding. The increase in sales and earnings was the result of new product introductions, increased penetration of European and Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. markets, and stable gross margins. The Company also significantly increased research and development expenditures during the period to $1,428,000 from $560,000. Revenue in Europe grew 50 percent from the same period of fiscal 1995, reflecting continued activity of the UK office. Revenue in the Asia/Pacific region increased 300 percent, resulting from activities of the recently established Australian office. Overall, sales outside North America increased 76 percent from the same period of 1995, and accounted for 46 percent of revenue compared with 37 percent in the first half of fiscal 1995. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales were ahead by 22 percent for the period. The Desktop product line continued to receive excellent market acceptance, with sales ahead 62 percent from the same period of 1995, led by sales of the Perception Video Recorder. The Studio product line was ahead 21 percent for the year to date. On June 15, 1996, a 52,000 square foot manufacturing facility was purchased in Toronto for $2.3 million. This will triple the manufacturing capacity of the company. The move to the new facility is expected to occur in October 1996. The June 30, 1996 financial statements reflect a one-time accrual of $227,000 for costs related to the remaining lease term at the Company's current premises. Digital Processing Systems is a leading designer and manufacturer of electronic hardware and related software used for creating, editing and processing broadcast-quality video and audio material. 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. -0-
DIGITAL PROCESSING SYSTEMS INC.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(unaudited)
For the six months ended June 30
1996 1995
Revenue $ 19,369,065 $ 13,626,328
Cost of sales 9,144,352 6,539,958
------------- -------------
Gross profit 10,224,713 7,086,370
Expenses
Marketing 2,562,916 1,846,207
Administration 2,167,009 1,391,658
Research and development 1,428,282 559,755
------------- -------------
6,158,207 3,797,620
Income before income taxes 4,066,506 3,288,750 Income taxes 1,559,363 1,285,978 Net income for the period 2,507,143 2,002,772
Retained earnings,
beginning of period 3,600,149 2,594,482
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Retained earnings,
end of period $ 6,107,292 $ 4,597,254
------------- -------------
Basic earnings per share (Note) $ 0.26 $ 0.21 Fully diluted earnings per share (Note) $ 0.22 $ 0.21 Note Basic earnings per share are calculated using a weighted average number of shares of 9,737,022 for 1996 and 9,375,000 for 1995. The weighted average number of shares by the end of 1996 are anticipated to be 11,050,671. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of are calculated using 13,069,833 shares for 1996 and 9,375,000 shares for 1995. Dilutive factors include an overallotment option overallotment option See greenshoe. and compensation options provided to the underwriters of 397,500 and 162,333 common shares, respectively and 485,000 stock options to employees and directors. Earnings of $403,000 has been imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's on these dilutive factors using a rate of return of 4.75 percent. DIGITAL PROCESSING SYSTEMS INC. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION (unaudited) For the six months ended June 30 1996 1995 Cash provided by (used in) Operating activities Net income for the period $ 2,507,143 $ 2,002,772 Amortization 93,273 129,493 Increase in non-cash working capital balances (4,289,941) (74,655) ------------- ------------- (1,689,525) 2,057,610 Financing activities Issuance of capital stock, net of issuance costs 20,570,189 - Advances from (to) shareholders, net 732,902 (383,846) Proceeds from long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , net 83,349 74,489 Dividends paid (1,578,330) - ------------- ------------- 19,808,110 (309,357) Investing activity Capital asset additions (2,711,819) (470,691) ------------- ------------- Increase in cash during the period 15,406,766 1,277,562 Cash, beginning of period 754,878 807,885 ------------- ------------- Cash and short-term investments, end of period $ 16,161,644 $ 2,085,447 ------------- ------------- DIGITAL PROCESSING SYSTEMS INC. CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (unaudited) June 30 1996 1995 Assets Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash and short-term investments $ 16,161,644 $ 2,085,447 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 4,279,303 3,361,508 Inventories 8,333,249 5,094,022 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 361,465 973,233 ------------- ------------- 29,135,661 11,514,210 Investment in affiliated company 116,840 - Deferred income taxes 529,580 - Capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) 3,766,445 1,038,943 ------------- ------------- $ 33,548,526 $ 12,553,153 ------------- ------------- Liabilities Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. Accounts payable and accrued liabilities $ 3,804,562 $ 5,563,640 Income taxes payable 679,823 487,324 Dividends payable Dividends payable The declared dividend dollar amount that a company is obligated to pay. 1,428,670 - Due to shareholders - 1,684,800 ------------- ------------- 5,913,055 7,735,764 Long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than 289,390 219,535 Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Capital stock 21,238,789 600 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 6,107,292 4,597,254 ------------- ------------- 27,346,081 4,597,854 ------------- ------------- $ 33,548,526 $ 12,553,153 ------------- ------------- CONTACT: Digital Processing Systems Inc. Dr. Keith Lucas, 416/754-8090 or Digital Processing Systems Inc. Ken MacKenzie, 416/754-8090 Digital Processing Systems' web site can be reached at www.dps.com. |
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