Gemcom Announces First Quarter Results.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Aug. 29, 1997--Gemcom Software International Inc. (VSE See DOS/VSE. VSE - Virtual Storage Extended :GCM GCM General Circulation Model GCM Global Climate Model GCM General Court-Martial GCM Galois/Counter Mode (cryptography) GCM Geriatric Care Managers GCM Global Circulation Model GCM Good Conduct Medal .), a leading software supplier for the earth resources industry, today reported sales of $1,157,247 and a net loss of $9,220, ($0.00 per share) for the first quarter ended June June: see month. 30, 1997. This compares to sales of $1,242,149 and earnings of $348,712, ($0.05 per share), for the corresponding period a year earlier. The slight decrease in revenues was the direct result of previously strained resources as the company expanded its internal infrastructure to manage its sales growth. Software shipments are typically followed by on-sight customer implementation and training, performed by qualified sales staff. During the latter half of fiscal 1997, sales continued to grow while manpower remained unchanged, thus impeding im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped continued sales growth in the recent quarter. "We are simply experiencing growing pains grow·ing pains pl.n. Pains in the limbs and joints of children or adolescents, frequently occurring at night and often attributed to rapid growth but arising from various unrelated causes. ," said Peter Franklin Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. , 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. . "It was imperative imperative: see mood. imperative - imperative language that we expand our sales and support staff as our markets continue to grow worldwide." To meet the needs of the company's growing marketplace, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the quarter increased significantly as the company began the expansion of its operating structure. Salaries increased by 43 percent with additions of new staff and rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. costs grew by more than 27 percent as surplus space is required to allow increased capacity. Marketing expenses have also grown substantially as the company plans the launch of its new Gemcom for Windows software product. "Management is confident that our investments in the future will pay off," Mr. Franklin continued. "We are continuing to position the company as a world leader in the production of software for the earth resources industry. The proceeds from our Initial Public Offering have put us in a healthy position to successfully achieve these goals." At the end of the quarter Gemcom announced the successful completion of its Initial Public Offering that raised the company $2,250,000. The financing was completed on June 26th, 1997, representing 2,500,000 common shares at $1.00 per share. In addition, the Company expanded its international presence by establishing a subsidiary sales office, Gemcom America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Latina S Latina (lätē`nä), city (1991 pop. 106,203), capital of Latina prov., in Latium, central Italy, near the Tyrrhenian Sea. It is an industrial, commercial, and agricultural center. Manufactures include tires, chemicals, and processed food. .A., Santiago, Chile Santiago, officially Santiago de Chile (Spanish: (helpinfo)), is the capital of Chile, and the center of its largest conurbation (Greater Santiago). . This subsidiary has already begun to produce revenues for the Company. Gemcom develops, markets, sells and supports technical software for the mineral exploration and mining industry. Its data analysis products are used for mine design and planning, manipulation Manipulation Dealing in a security to create a false appearance of active trading, in order to bring in more traders. Illegal. of drillhole samples data and ore body modeling. Gemcom is currently developing Windows 95/NT versions of its products PC-XPLOR, GEO-MODEL, PC-MINE and MINE-SURVEY. Its software is used by more than 375 organizations at 1,450 locations in over 60 countries. Gemcom is a Vancouver-based company with offices in eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). , Gemcom has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9.5 million shares outstanding. -0-
Gemcom Software International Inc.
(Formerly Gemcom Services Inc.)
Consolidated Statement of Operations and Retained Earnings
For the Three Months Ended June 30, 1997 1996
REVENUE
Professional fees and sales $ 742,317 $ 873,012
Maintenance contracts 378,953 300,616
Other 35,977 68,521
----------------------
1,157,247 1,242,149
EXPENSES
Commissions 6,000 3,496
Depreciation and amortization 24,696 18,452
Equipment leases and maintenance 3,979 7,316
Interest and bank charges 7,646 15,927
Marketing 176,185 114,466
Official and general 41,529 60,895
Professional fees 62,356 8,513
Recoverable expenses 13,156 23,823
Rent 65,999 39,425
Salaries and benefits 759,504 525,547
Software royalties 0 512
Systems and manufacture 30,764 7,595
----------------------
1,191,814 825,967
----------------------
Less
Minority interest in loss of
Gemcom America Latina S.A. 3,574 0
----------------------
1,188,240 825,967
----------------------
INCOME BEFORE TAXES (30,993) 416,182
Income taxes (21,773) 67,470
----------------------
NET INCOME (LOSS) FOR THE PERIOD (9,220) 348,712
RETAINED EARNINGS, beginning of period 597,643 502,766
----------------------
588,423 851,478
Dividends paid 0 62,625
----------------------
RETAINED EARNINGS, end of period $ 588,423 $ 788,853
----------------------
Earnings per share ($0.001) $0.050
-0-
Gemcom Software International Inc.
(Formerly Gemcom Services Inc.)
Consolidated Balance Sheet
As at June 30, 1997 1996
ASSETS
CURRENT
Cash and short term deposits $3,032,622 $ 342,654
Accounts receivable 997,993 1,213,746
Prepaid expenses 138,477 86,171
----------------------
4,169,092 1,642,571
CAPITAL ASSETS 410,471 349,209
GOODWILL 66,553 75,141
----------------------
$4,646,116 $2,066,921
----------------------
LIABILITIES
CURRENT
Accounts payable and accrued
liabilities $ 361,629 $ 340,293
Deferred revenue 821,752 643,717
Current portion of capital lease
obligations 33,283 21,247
----------------------
1,216,664 1,005,257
MINORITY INTEREST IN GEMCOM AMERICA
LATINA S.A. 30,108 0
CAPITAL LEASE OBLIGATIONS 65,275 63,272
----------------------
1,312,047 1,068,529
----------------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 2,745,646 209,539
RETAINED EARNINGS 588,423 788,853
----------------------
3,334,069 998,392
----------------------
$4,646,116 $2,066,921
----------------------
-0-
Gemcom Software International Inc.
(Formerly Gemcom Services Inc.)
Consolidated Statement of Income and Retained Earnings
For the Three Months Ended June 30, 1997 1996
CASH PROVIDED FROM (USED FOR)
Operations
Net income $ (9,220) $ 348,712
Items not involving cash:
Depreciation and amortization 24,696 18,452
Minority interest in loss of
Gemcom America Latina S.A. (3,574) 0
----------------------
(11,902) 367,164
Changes in non-cash operating
working capital (192,637) (258,048)
----------------------
(180,735) 109,116
FINANCING ACTIVITIES
Increase in capital lease obligations 2,590 33,254
Issuance (redemption) of capital
stock 2,538,147 0
----------------------
2,540,737 33,254
----------------------
INVESTING ACTIVITIES
Additions to capital assets (36,709) (77,590)
Minority interest in Gemcom America
Latina S.A. 30,108 0
Dividends paid 0 (62,625)
----------------------
(6,601) (140,215)
----------------------
INCREASE IN CASH 2,353,401 2,155
CASH, beginning of period 679,221 340,499
----------------------
CASH, end of period $3,032,622 $ 342,654
----------------------
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release. CONTACT: Gemcom Software International Inc. Karen McCluskey Karen McCluskey is a fictional character on the ABC television series Desperate Housewives. The character is played by Kathryn Joosten, who won the Emmy Award for Outstanding Guest Actress in a Comedy Series for the role in 2005. , 604/684-6550 Fax: 604/684-3541 http://www.gemcom.bc.ca e-mail: karenm@gemcom.bc.ca |
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