OnX Enterprise Solutions Announces First Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- OnX OnX - A graphics package from LAL Orsay. Enterprise Solutions Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ON),"OnX", a leading Managed Services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solution provider today announced its financial results for its first quarter ending July July: see month. 31, 2004. Q1 FY'05 Highlights - 10% increase in revenues over Q1 FY04 - Eighth consecutive quarter of positive operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (1) - Operating earnings of $0.1 million - Net loss of $0.3 million - Signed deal with Aviva Aviva plc (LSE: AV.) is the world's fifth-largest insurance group, the biggest insurance group in the UK and the second-largest insurance group in Canada. Worldwide, it trails behind AXA, Allianz, ING and Fortis. 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 Inc. to offer PC data protection through their broker network - Hired Victor Bocking Bocking, England: see Braintree. as VP, Business development for Web Solutions and Services business unit Q1 Summary Total revenue for the first quarter of fiscal 2005 increased by 10% to $16.1 million from the $14.6 million recorded in the same period of FY'04. Revenue was down by 13% or $2.5 million compared with $18.6 million recorded in Q4 FY'04. Historically, Q1 revenues are lower than Q4 revenues predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. due to seasonal factors. Total gross profit was $3.4 million, the same as in Q4 FY'04 but down from the $3.7 million recorded in Q1 FY'04. Selling and administrative expenses increased to $3.3 million in the first quarter compared with $3.2 million in the fourth quarter of FY'04 and $2.9 million recorded in the same quarter of the prior year. The increase in selling and administrative expenses were primarily as a result of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments of $0.15 million and facility lease costs of $0.20 million which will come to end of term in July, 2005. The above resulted in positive operating earnings of $0.1 million for the first quarter, down from the $0.2 million recorded in the fourth quarter of FY'04 and down from the $0.7 million recorded in the first quarter of FY'04. Nonetheless, this marks the eighth consecutive quarter of positive operating earnings. Amortization and interest for the first quarter was $0.5 million, no change from the fourth quarter of FY'04 but down from the $0.6 million recorded in the first quarter of FY'04. As a result, the net loss for the quarter was $0.3 million, no change from the net loss recorded in the fourth quarter of FY'04 but down from the net income of $0.1 million recorded in the same period in FY'04. "During the quarter, we saw improvements in two of our business units; Hardware/Software and Infrastructure Services while increasing our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. in Managed Services. However, our Web Solutions and Services revenues were down in the quarter due to a reduction in spending by a large customer," stated Sheldon
Sheldon may refer to: Places
pollack or pollock Either of two commercially important North Atlantic species of food fish in the cod family (Gadidae). , 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. of OnX. "I am optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that revenue from this one customer will be replaced by business from a number of new customers. This will benefit the Company as dependence will be reduced while opportunities from new markets will increase". Liquidity and Capital Resources At the end of the first quarter of fiscal 2005, OnX reported working capital of $1.6 million and a current ratio of 1.11:1 compared with working capital of $1.9 million and no change in its current ratio of 1.11:1 at the end of the fourth quarter of fiscal 2004. Due to the timing of payments to suppliers and receipts from customers, OnX reported a use of its line of credit of $1.0 million at the end of Q1 compared with cash of $7.8 million at the end of Q4. OnX continues to have available an additional $5.0 million in its operating line of credit. "It is not unusual for OnX's cash balance to fluctuate significantly during a quarter based on the need to finance large transactions from the Company's Hardware and Software line of business. As a result, we focus more on working capital and our current ratio which did not change significantly during the quarter", stated Daren Selfe C.A., CFO See Chief Financial Officer. of OnX.
Financial Highlights
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(in 000's of CDN Dollars except per share amounts)
Q1 Q4 Q1
FY'05 FY'04 FY'04
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Sales
Hardware and Software $12,342 $14,983 $10,243
Professional Services 3,221 3,073 3,792
Managed Services 508 516 542
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Total Sales $16,071 $18,572 $14,577
Cost of sales 12,648 15,183 10,911
Gross profit
Hardware and Software 1,853 1,962 1,543
15.0% 13.1% 15.1%
Professional Services 1,355 1,184 1,888
42.1% 38.5% 49.8%
Managed Services 215 243 235
42.3% 47.1% 43.4%
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Gross profit 3,423 3,389 3,666
Gross profit percentage 21.3% 18.2% 25.1%
Selling and administrative expenses 3,303 3,161 2,917
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Operating earnings $120 $228 $749
Amortization 413 459 533
Interest 48 64 106
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Net income (loss) ($341) ($295) $110
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Basic and diluted earnings (loss) per
share ($0.01) $0.00 $0.01
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OnX Enterprise Solutions Inc.
Consolidated Balance Sheets
As at July 31 and April 30, 2004
(In thousands of Canadian dollars)
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July 31, 2004 April 30, 2004
(Unaudited)
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Assets
Current assets:
Cash $ - $ 7,769
Accounts receivable 15,144 10,533
Prepaid expenses 996 763
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16,140 19,065
Capital assets 5,067 5,360
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$21,207 $ 24,425
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 956 $ -
Accounts payable 11,038 14,084
Accrued liabilities 781 1,071
Deferred revenue 702 900
Current portion of long-term debt 1,000 1,000
Current portion of obligations under capital
leases 47 100
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14,524 17,155
Long-term debt 1,067 1,317
Obligations under capital leases 66 79
Long-term facility lease accrual 243 251
Shareholders' equity 5,307 5,623
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$ 21,207 $ 24,425
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OnX Enterprise Solutions Inc.
Consolidated Statements of Operations (unaudited)
Three months ended July 31, 2004 and 2003
(In thousands of Canadian dollars, except share amounts)
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2004 2003
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Sales
Hardware and software $ 12,342 $ 10,243
Professional services 3,221 3,792
Managed services 508 542
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Sales 16,071 14,577
Cost of Sales
Hardware and software 10,489 8,700
Professional services 1,866 1,904
Managed services 293 307
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Cost of Sales 12,648 10,911
Gross Profit
Hardware and software 1,853 1,543
15.0% 15.1%
Professional services 1,355 1,888
42.1% 49.8%
Managed services 215 235
42.3% 43.4%
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Gross Profit 3,423 3,666
21.3% 25.1%
Expenses:
Selling 1,438 1,230
Administrative 1,865 1,687
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3,303 2,917
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Income before amortization and interest 120 749
Amortization of capital assets 413 533
Interest and bank charges 48 106
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461 639
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Net income (loss) $ (341) $ 110
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Deficit, beginning of period (70,792) (70,552)
Adjustment for stock based compensation (307) -
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Deficit, end of period $(71,440) $(70,442)
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Basic and diluted earnings (loss) per share $ (0.01) $ -
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Basic weighted average common shares
outstanding 59,493,302 53,175,217
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Diluted weighted average common shares
outstanding 62,172,889 55,377,642
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OnX Enterprise Solutions Inc.
Consolidated Statements of Cash Flows (unaudited)
Three months ended July 31, 2004 and 2003
(In thousands of Canadian dollars)
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2004 2003
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Cash provided by (used in):
Operations:
Income (loss) from operations $ (341) $ 110
Items not involving cash:
Amortization of capital assets and
intangibles 413 533
Stock based compensation 25 -
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97 643
Change in non-cash operating working capital (8,378) (2,875)
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(8,281) (2,232)
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Financing:
Increase in bank indebtedness 956 -
Payments on obligations under capital leases (66) (142)
Repayment of long-term debt (250) (250)
Long-term facility lease accrual (8) (105)
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632 (497)
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Investments:
Purchase of capital assets (120) (152)
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(120) (152)
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Decrease in cash (7,769) $ (2,881)
Cash beginning of period 7,769 2,965
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Cash end of period $ - $ 84
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About OnX Enterprise Solutions Inc. With over 1,000 customers, OnX Enterprise Solutions Inc. (www.onx.com) is a leading technology solution provider focused on "eXtending your enterprise" through the development and delivery of Web, Infrastructure and Networking services and solutions. Through ManagedServicesPlus which encompasses all three business units, the Company provides customers with Outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, , Managed and ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). solutions through its state-of-the-art Data and Network Operations Centre. OnX Enterprise Solutions is celebrating 21 years in business 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. . Headquartered in Thornhill, Ontario Thornhill (2006 population 106,394) is an upscale community in Ontario, Canada, directly north of Toronto. It is considered the most affluent of Toronto suburbs. It straddles two municipalities, the city of Vaughan having the portion west of Yonge Street and the town of Markham the Company has offices in Ottawa Ottawa, city, Canada Ottawa (ŏt`əwə), city (1991 pop. 313,987), capital of Canada, SE Ont., at the confluence of the Ottawa and Rideau rivers. Hull, Que. , Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. and Toronto. (1) Operating earnings is comprised of gross profit less selling and administrative expenses and therefore reflects income (loss) before amortization, interest and other items including asset write-downs, severance and lease exit costs. OnX uses operating earnings amongst other measures to assess the operating performance of its ongoing business. The term operating earnings does not have a recognized meaning under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and therefore may not be comparable to similarly titled measures presented by other companies. Operating earnings should not be construed as the equivalent to cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Forward Looking Statement Investors should take note that certain statements in this press release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and may not give full weight to all of the potential risks and uncertainties. These 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. include statements that are subject to risks and uncertainties. Forward-looking statements are subject by their nature to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the forward-looking statements. Any forward-looking statements speak only as of the date made. The company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by the securities laws. OnX Enterprise Solutions Inc. (TSX:ON) |
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