IDS Announces Results for the Second Quarter Ended June 30, 2000.Business Editors TORONTO--(BUSINESS WIRE)--Oct. 6, 2000 IDS Intelligent Detection Systems Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :ISD See IDD. ) today announced its unaudited results for the three and six month period ended June June: see month. 30, 2000, together with comparative results. On August 29, 2000, the Company reported preliminary results for the six month period ended June 30, 2000. At that time, IDS stated that results for the second quarter would be issued once it had completed an internal review related to certain transactions which management believed might affect prior period issued financial statements. This review now has been completed and the Company believes it can report interim results in prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). format in satisfaction of applicable regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Three and Six Month Period Ended June 30, 2000 IDS today announces that its previously reported loss of $19,199,000, or $0.84 per share, for the six-month period ended June 30, 2000 (August 29, 2000 press release) has been decreased to a loss of $15,779,000, or $0.69 per share. The variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality in six-month period results from a determination by management that certain amounts, which had been previously recorded in the current year, should be more appropriately recorded in a prior period. For the three-month period ended June 30, 2000 the Company announced today a loss of $11,605,000, or $0.51 per share. The comparative figures for the three and six month period ended June 30, 1999 which were previously reported (August 9, 1999 press release) have been adjusted to reflect the prior period and other amounts which should be recorded in these 1999 comparative periods. For the three month and six month periods ended June 30, 1999 the Company is now reporting a net loss of $447,000, or $0.02 per share, and net income of $1,151,000, or $0.05 per share, respectively. Revenues for the three-month period ended June 30, 2000 of $6,331,000 were lower than the revenues of $11,320,000 in the same period in 1999 primarily due to lower Analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. and Security product sales and revenue from the Power and Control division. Gross margin for the three month period ended June 30, 2000 was $1.2 million representing 18% of revenues compared to $3.6 million representing 32% of revenues for the same period in 1999. The decrease in gross margin is primarily due to an increase in lower margin installation contracts and a decline in higher margin product sale revenues in the Analytical and Security division. Included in the now reported loss for the three month period ended June 30, 2000 of $11,605,000 are unusual items totaling $4,620,000 which relate to an increase in inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. reserves and a reduction of deferred development costs primarily as a result of the U.S. Federal Aviation Agency (FAA) decision not to list the Company's ORION product as an approved product. Further the loss for the second quarter ended June 30, 2000 also included costs of $2,276,000 related to the development of Caduceon and Geocommerce products.
Financial Highlights In Thousands of Dollars
(except per share amounts) Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------
Revenue $6,331 $11,320$14,639(1) $25,769
Cost of sales $5,164 $7,724 $10,453 $15,953
Unusual items $4,620 - $4,620 -
Net income (loss) ($11,605) ($447) ($15,779) $1,151
EBITDA and Unusual items ($5,897) $299 ($8,986) $2,642
Caduceon/Geocommerce
costs ($2,276) - ($4,364) -
included in net
income (loss)
Basic earnings
(loss) per share ($0.51) ($0.02) ($0.69) $0.05
1. Decrease of $ 457,000 from the revenue of $ 15,096,000 for the six month period ended June 30, 2000 reported on August 29, 2000 due to an overstatement o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o of unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. revenue as at March 31, 2000. Three Months Ended March 31, 2000 The Company also announced today that the previously reported loss of $ 1,257,000, or $ 0.05 per share, for three-month period ended March 31, 2000 (May 23, 2000 press release) has been increased by $ 2,917,000 to $ 4,174,0000, or $ 0.18 per share. The increase in loss included the following items: $ 1,017,000 increase in selling, general and administrative expenses in connection with expenses which were recorded in the second quarter but relate to the first quarter; $ 562,000 increase in depreciation expense to reflect actual expense for the period; $ 617,000 increase in cost of sales that relates to sales revenue recorded in the first quarter; $ 465,000 decrease in Power and Control unbilled revenue; and a $ 256,000 increase in research and development expenses. The comparative figures for the three month period ended March 31, 1999 which were previously reported (April 27, 1999 press release) have been adjusted to reflect the prior period and other amounts which should be recorded in the 1999 comparative period. For the three- month period ended March 31, 1999 the Company is now reporting net income of $ 1,598,000, or $ 0.07 per share. Revenues in the first quarter of this year at $ 8.3 million were lower than the first quarter of 1999, because no further sales of the Large Vehicle Bomb Detection System (LVBDS) have been secured since the $ 7,305,000 sale that occurred in the comparative quarter. Gross margin for the first quarter was $ 3.0 million representing 36% of revenues compared to $ 6.2 million representing 43% of revenues for the same period in fiscal 1999. Costs of $ 2.1 million related to the development of Caduceon and Geocommerce products were included in the first quarter loss of $ 4,174,000.
Financial Highlights In Thousands of Dollars
(except per share amounts) Three Months Ended March 31
2000 1999
---------------------------------------------------------------
Revenue $ 8,308 $ 14,449
Cost of sales $ 5,290 $ 8,229
Net income (loss) ($ 4,174) $ 1,598
EBITDA ($ 3,089) $ 2,345
Caduceon/Geocommerce Costs included ($ 2,088) -
in Net income (loss)
Basic earnings (loss) per share ($ 0.18) $ 0.07
Fiscal 1999 Results The Company announced today that the previously reported loss of $ 2,157,000, or $ 0.10 per share, for the year ended December December: see month. 31, 1999 (April 13, 2000 press release) may, subject to confirmation during the audit of the current year's results, be increased by $ 3,471,000 to $ 5,628,0000, or $ 0.25 per share. This potential increase in loss for fiscal 1999 was identified by a detailed review of accounting records during the past few months by the new management team. This increase in loss, if confirmed, would include the following items: $ 1,310,000 of Pemex Survey contract costs paid in the first and second quarters of fiscal 2000 which should have been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. as at December 31, 1999; $ 1,027,000 of accounts payable recorded as at June 2000 which related to revenue recorded in 1999; $ 750,000 reduction in unbilled revenue as at June 30, 2000 which related to 1999; and, $ 384,000 of sales commission payable recorded as a liability at June 30, 2000 that related to sales recorded prior to fiscal 2000. Subject to the above, the previously reported gross margin for fiscal 1999 of $ 17,217,000 would decrease by $ 3,471,000 to $ 13,746,000 representing 33% of revenues for the year as compared to $ 8.9 million representing 40% of revenues for fiscal 1998. About IDS: IDS is an innovative developer, manufacturer and marketer of proprietary sensory sensory /sen·so·ry/ (sen´sor-e) pertaining to sensation. sen·so·ry adj. 1. Of or relating to the senses or sensation. 2. technology. The company operates through seven business units: Analytical & Security, IDS Power Control Systems, Scintrex Earth Science Instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. , Survey & Exploration Technology Services, ChemiCorp International, Geocommerce Inc. and Caduceon Inc. Its more than 70 products range from drug and explosives The law of explosives covers dangerously volatile substances, including gasoline, oil, dynamite, and blasting caps filled with highly explosive compounds. Under the Police Power given to the states through the Tenth Amendment to the U.S. detectors to power generation safety control instruments, mineral and petroleum exploration instrumentation and services, and developing technologies for industrial process control and point-of-care health analysis. IDS's business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. eCommerce See e-commerce. company, GeoCommerce Inc., provides centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. and information exchanges for the global mining, exploration, and geophysics geophysics, study of the structure, composition, and dynamic changes of the earth, its atmosphere, hydrosphere and magnetosphere, based on the principles of physics. communities through www.MineOnline.com and www.GeophysicsOnline.com. IDS operates worldwide in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the US, France, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , and is publicly traded on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (symbol:ISD). IDS's website is located at www.idsdetection.com
IDS INTELLIGENT DETECTION SYSTEMS INC.
Consolidated Balance Sheet
As at March 31, 2000
With comparative figures at December 31, 1999
(In thousands of dollars)
(Unaudited)
---------------------------------------------------------------
March 31 December 31
2000 1999
---------------------------------------------------------------
Assets
Current assets:
Cash $ 878 $ 1,383
Accounts receivable 11,507 9,568
Unbilled revenue 6,676 5,407
Investment tax credits recoverable 119 119
Income taxes recoverable 69 -
Inventory 13,678 13,129
Prepaid expenses 527 483
---------------------------------------------------------------
33,454 30,089
Long-term investments 327 327
Capital assets 15,861 15,226
Deferred development costs 2,225 1,974
Goodwill 18,399 17,509
----------------------------------------------------------------
$ 70,266 $ 65,125
===============================================================
Liabilities and Shareholders' Equity
Current liabilities:
Bank loan $ 8,777 $ 4,801
Accounts payable and accrued
liabilities 13,048 10,128
Income taxes payable - 194
Current portion of capital lease
obligations 365 354
---------------------------------------------------------------
22,190 15,477
Capital lease obligations 540 575
Deferred lease inducement 224 262
Deferred income taxes (48) 179
---------------------------------------------------------------
22,906 16,493
---------------------------------------------------------------
Shareholders' equity:
Share capital 58,017 55,104
Cumulative translation adjustment (72) (61)
Deficit (10,585) (6,411)
---------------------------------------------------------------
47,360 48,632
---------------------------------------------------------------
$ 70,266 $ 65,125
===============================================================
IDS INTELLIGENT DETECTION SYSTEMS INC. Consolidated Statement of
Earnings (Loss) and Deficit For the three month period ended March 31,
2000 With comparative figures for the three month period ended March
31, 1999
(In thousands of dollars)
(Unaudited)
===============================================================
2000 1999
===============================================================
Sales $ 8,308 $ 14,449
Cost of Goods Sold 5,290 8,229
---------------------------------------------------------------
3,018 6,220
---------------------------------------------------------------
Expenses:
Selling, general and administrative 5,510 3,416
Amortization of capital assets and
deferred development costs 818 430
Research and development 597 460
Amortization of goodwill 267 327
---------------------------------------------------------------
7,192 4,632
---------------------------------------------------------------
Income (loss) before interest income (4,174) 1,588
Interest income - 10
----------------------------------------------------------------
Net income (loss) (4,174) 1,598
Deficit, beginning of year (6,411) (783)
---------------------------------------------------------------
Retained earnings (deficit), end
of period $ (10,585) $ 815
---------------------------------------------------------------
Net income (loss) per share-basic $ ( 0.18) $ 0.07
===============================================================
IDS INTELLIGENT DETECTION SYSTEMS INC.
Consolidated Statements of Cash Flows
For the three months ending March 31, 2000
With comparative figures for the three month period ended March
31, 1999
(In thousands of dollars)
(Unaudited)
===============================================================
Three months Three months
March 31 March 31
2000 1999
---------------------------------------------------------------
Operations:
Net income (loss) $ (4,174) $ 1,598
Items not involving cash:
Amortization of capital
assets, deferred
development costs 818 430
Amortization of Goodwill 267 327
Changes in non-cash operating
working capital 1,386 (1,539)
---------------------------------------------------------------
(1,703) 815
------------------------------------------------------------------
Investments:
Additions to capital assets, deferred
development costs and goodwill (1,704) (1,108)
---------------------------------------------------------------
Financing:
Issuance of share capital,
net of issuance costs 2,913 -
Cumulative translation adjustment (11) (99)
---------------------------------------------------------------
2,902 (99)
---------------------------------------------------------------
Decrease in cash and cash equivalents (505) (193)
Cash and cash equivalents, beginning
of year 1,383 1,154
---------------------------------------------------------------
Cash and cash equivalents, end of
period $ 878 $ 961
===============================================================
IDS INTELLIGENT DETECTION SYSTEMS INC.
Consolidated Balance Sheet
As at June 30, 2000
With comparative figures at December 31, 1999
(In thousands of dollars)
(Unaudited)
---------------------------------------------------------------
June 30 December 31
2000 1999
---------------------------------------------------------------
Assets
Current assets:
Cash $ 439 $ 1,383
Accounts receivable 9,057 9,568
Unbilled revenue 4,857 5,407
Investment tax credits recoverable 142 119
Inventory 10,685 13,129
Prepaid expenses 770 483
---------------------------------------------------------------
25,950 30,089
Long-term investments 327 327
Capital assets 15,056 15,226
Deferred development costs 1,640 1,974
Goodwill 20,004 17,509
---------------------------------------------------------------
$ 62,976 $ 65,125
===============================================================
Liabilities and Shareholders' Equity
Current liabilities:
Bank loan $ 8,399 $ 4,801
Accounts payable and accrued
liabilities 16,738 10,128
Income taxes payable 164 194
Current portion of capital lease
obligations 1,196 354
----------------------------------------------------------------
26,497 15,477
Capital lease obligations 573 575
Deferred lease inducement 233 262
Deferred income taxes (3) 179
---------------------------------------------------------------
27,300 16,493
---------------------------------------------------------------
Shareholders' equity:
Share capital 58,051 55,104
Cumulative translation adjustment (185) (61)
Deficit (22,190) (6,411)
---------------------------------------------------------------
35,676 48,632
$ 62,976 $ 65,125
===============================================================
IDS INTELLIGENT DETECTION SYSTEMS INC.
Consolidated Statement of Earnings (Loss) and Deficit
For the three and six months period ended June 30, 2000
With comparative figures for the three and six months period
ended June 30, 1999
(In thousands of dollars)
(Unaudited)
===============================================================
Three Three Six Six
Months Months Months Months
June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------
Sales $ 6,331 $ 11,320 $ 14,639 $ 25,769
Cost of Goods Sold 5,164 7,724 10,453 15,953
---------------------------------------------------------------
1,167 3,596 4,186 9,817
---------------------------------------------------------------
Expenses:
Selling, general and
administrative 6,469 3,089 11,979 6,504
Amortization of capital
assets and deferred 776 446 1,594 875
development costs
Research and development 595 210 1,192 670
Amortization of goodwill 312 327 579 653
---------------------------------------------------------------
8,152 4,071 15,344 8,702
---------------------------------------------------------------
(6,985) (474) (11,159) 1,114
Unusual items (4,620) - (4,620) -
Interest income - 27 - 37
---------------------------------------------------------------
Net income (loss) (11,605) (447) (15,779) 1,151
Retained earnings
(deficit), beginning
of period (10,585) 815 (6,411) (783)
---------------------------------------------------------------
Retained earnings
(deficit), end of
period $ (22,190) $ 368 $ (22,190) $ 368
---------------------------------------------------------------
Net income (loss) per
share-basic $ (0.51) $ (0.02) $ ( 0.69) $ 0.05
---------------------------------------------------------------
IDS INTELLIGENT DETECTION SYSTEMS INC.
Consolidated Statements of Cash Flows
For the three and six months ending June 30, 200
With comparative figures for the three and six months period ended
June 30, 1999 (In thousands of Dollars) (unaudited)
Three Three Six Six
Months Months Months Months
June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------
Operations
Earnings (loss) from
continuing
operations $ (11,605) $ (447) $ (15,779) $ 1,151
Items not involving
cash:
Amortization of capital
assets and deferred
development costs 776 446 1,594 875
Amortization of goodwill 312 327 579 653
Unusual items 4,620 - 4,620 -
Changes in non-cash
operating working
capital balances 5,594 3,989 6,979 2,450
---------------------------------------------------------------
(303) 4,314 (2,007) 5,129
---------------------------------------------------------------
Investments:
Additions to capital
assets and deferred
development costs (57) (929) (1,761) (2,037)
Financing :
Issuance of share
capital, net of
issuance costs 34 - 2,947 -
Cumulative translation
adjustment (113) 120 (124) 219
---------------------------------------------------------------
(79) 120 2,823 219
===============================================================
Increase (decrease) in
cash and cash
equivalents (439) 3,505 (945) 3,311
Cash and cash
equivalents, beginning
of period 878 961 1,383 1,154
---------------------------------------------------------------
Cash and cash
equivalents, end
of period $ 439 $ 4,465 $ 439 $ 4,465
===============================================================
IDS INTELLIGENT DETECTION SYSTEMS INC.
Operating Segments
For the six months ending June 30, 2000
(in thousands of dollars)
(Unaudited)
For the six months ending
June 30, 2000 ESID Power Security Survey
Control
---------------------------------------------------------------
Net Sales 4,272 3,146 3,592 2,567
Gross Margin 2,036 282 940 239
Loss for the period (2,542) (1,594) (5,790) (1,332)
Loss excluding unusual items(2,042)(1,094) (2,418) (1,332)
IDS INTELLIGENT DETECTION SYSTEMS INC.
Operating Segments
For the six months ending June 30, 2000
(in thousands of dollars)
(Unaudited)
For the six months ending
June 30, 2000 Geo Caduceon Chemicorp/ Total
Commerce IEC
---------------------------------------------------------------
Net Sales - - 1,063 14,640
Gross Margin - - 688 4,185
Loss for the period (3,764) (600) (157) (15,779)
Loss excluding unusual items(3,764) (352) (157) (11,159)
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