OMT Reports Financial Results for Second Quarter 2005.WINNIPEG, Manitoba -- OMT (Object Modeling Technique) An object-oriented analysis and design method developed by James Rumbaugh. See Rational Rose. OMT - Object Modelling Technique Inc.(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:OMT) announced today the Company's consolidated results for the period ended June 30, 2005. Second Quarter Financial Highlights - Completed one of the largest deployment quarters for iMediaTouch to new radio station customers including the signing of new target multi-station radio station groups. - Signed a four-year exclusive partnership agreement with the Canadian Broadcasting Corporation's Galaxie music division for content delivery by Intertain's background music and messaging service. - Completed a content licensing agreement for Intertain's music previewing service with EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC. Music Canada, which consists of 70 music labels including Capitol Music, Virgin Music and BlueNote. - Signed a large contract valued at over $800,000 CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. for iMediaTouch to AZCAR USA Inc as part of its contract for the American Armed Forces Radio and Television Service A worldwide radio and television broadcasting organization that provides US military commanders overseas and at sea with sufficient electronic media resources to effectively communicate theater, local, Department of Defense, and Service-unique command information to their personnel and (AFRTS AFRTS Armed Forces Radio & Television Service (US DOD) AFRTS American Forces Radio & Television Service ) Digital Radio Facility at the Defense Media Center at March Air Force Base in CA. Description of Business OMT Inc. (TSX VENTURE:OMT) is a digital media content and technology solution provider to retailers of media products and radio broadcasters. Intertain Media, the digital entertainment division, offers media previewing systems to major retailers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. such as Best Buy as well as background music and messaging services. The iMediaTouch division delivers radio automation systems with over 1,200 domestic and international clients such as ABC Radio ABC Radio is a broadcasting unit of Citadel Broadcasting Corporation.[1] ABC Radio was, from 1945 until 2007, the division of the American Broadcasting Company (ABC) focused on AM radio and FM radio broadcasting. Networks, Canadian Broadcasting Corporation “Radio-Canada” redirects here. For the French language TV arm of the CBC, see Télévision de Radio-Canada. The Canadian Broadcasting Corporation (CBC), a Canadian crown corporation, is the country’s national public radio and television broadcaster. , Corus Entertainment Corus Entertainment Inc. TSX: CJR.B NYSE: CJR is a publicly traded Canadian media and entertainment company. Corus is a market leader in specialty television and radio with additional assets in pay television, advertising and digital audio services, television , DMX/AEI, Music Choice, Clear Channel, and CBS (Cell Broadcast Service) See cell broadcast. Infinity Broadcasting. OMT's broadcasting, multi-media technology, and content are heard daily by over 50 Million people worldwide through radio, satellite, television and Internet delivered broadcasts. To learn more about the Company, its products and services, visit its website at www.omt.net. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial Certain statements made in the following Management's Discussion and Analysis contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent our current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required by applicable securities law, we disclaim any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements. Results of Operations This review contains Management's discussion of the Company's operational results and financial condition, and should be read in conjunction with the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the previous quarter ended March 31, 2005 and the associated notes and the audited consolidated financial statements for the year ended December 31, 2004. The unaudited consolidated financial statements provide a comparison of the three months ended June 30, 2005 to the three months ended June 30, 2004. These interim financial statements have not been reviewed by the company's auditors.
Eight Quarter Review (in 000's)
(Unaudited)
2005
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Q2 Q1
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Total Sales $1,044 $888
Gross Profit $611 $628
Gross Profit % 58.5% 70.7%
Operating Expenses $635 $559
EBITDA ($25) $89
Net Income (Loss) ($236) ($126)
Net Income (Loss) per share
(basic & diluted) ($0.008) ($0.004)
Dividends declared Nil Nil
2004
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Q4 Q3 Q2 Q1
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Total Sales $1,072 $645 $849 $916
Gross Profit $616 $435 $572 $594
Gross Profit % 57.5% 67.4% 67.4% 64.8%
Operating Expenses $698 $544 $570 $566
EBITDA ($85) ($123) 4 $29
Net Income (Loss) ($324) ($284) ($139) ($137)
Net Income (Loss) per share
(basic & diluted) $ (0.03) ($0.02) $ (0.01) $ (0.01)
Dividends declared Nil Nil Nil Nil
2003
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Q4 Q3
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Total Sales $942 $500
Gross Profit $480 $317
Gross Profit % 51.0% 63.4%
Operating Expenses $728 $621
EBITDA ($182) ($468)
Net Income (Loss) ($404) ($711)
Net Income (Loss) per share
(basic & diluted) $ (0.04) $ (0.06)
Dividends declared Nil Nil
Sales for the quarter ended June 30, 2005 show an increase of $195,000, or 22.9% over the same quarter last year. The increase is largely attributed to hardware sales, which increased from $309,000 in 2004 and $244,000 in the first quarter of 2005 to $477,000 this quarter. These hardware sales were related to the increased deployments of iMediaTouch to new radio station clients and Intertain's retail previewing service to existing clients. Although sales are higher, due to the lower margins associated with hardware, the overall increase in gross profit was only $39,000 (6.8%) over the same quarter last year and $17,000 (2.7%) lower than the first quarter this year. Software and service sales increased slightly from $540,000 to $567,000 (5.0%) over the same quarter last year. Year to date, gross profit was $73,000 (6.2%) higher this year, as compared to last year. 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. at $635,000 were $65,000 (11.4%) higher than in the same period last year and $76,000 (13.6%) higher than the first quarter of this year. The change is largely related to a significant increase in audit and consulting fees this quarter to support various past and current business development initiatives, as well as additional sales and management personnel. Research and development expenses declined 24.9% over the previous year, which are a result of the maturity and reliability levels of the company's technologies and improved efficiencies. Other expenses increased by $67,000 (46.8%) as a result of debt service requirements on the $4,000,000 of convertible debt raised in December 2004. Payments toward this debt are for interest only, and no principle payments are required until maturity in December 2008. The loss before Interest, Taxes, Depreciation and Amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) was $25,000. Net loss after all costs and expenses was $236,000, or less than one cent per share. Liquidity OMT had a working capital balance of $228,499 as of June 30, 2005. This is a decrease of $117,826 since December 31, 2004. The current ratio of 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. to 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. is 1.22:1 as compared to 1.25:1 at December 31, 2004 and 0.5:1 at December 31, 2003. The improvement is a result of the financing that closed in December 2004. The company has no borrowings on the operating credit line of $600,000 as of June 30. During the second quarter, the cash position was reduced by $77,000. Funds were used for operations of $13,000, capital expense of $7,000, and payments of 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. of $56,000. OMT Inc. (TSX VENTURE:OMT) |
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