OnX Enterprise Solutions Announces Second 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 provider of IT services and mid-market outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. solutions today announced its financial results for its second quarter ending October October: see month. 31, 2004. Q2 FY'05 Highlights - Total revenue of $16.7 million - Awarded or extended $4.5 million in IT outsourcing contracts - Total services revenues of $4.4 million - 16% increase in services revenues over Q2 FY04 - 19% increase in services revenues over previous quarter - Ninth 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 $0.7 million - Net income of $0.2 million Q2 FY'05 Summary Total revenue for the second quarter of fiscal 2005 increased by 4%, or $0.6 million, to $16.7 million from the $16.1 million recorded in the first quarter of FY'05, but decreased by 6% compared with the $17.7 million recorded in the second quarter of the prior year. Services revenue (Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and 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 ), increased 19% compared with the first quarter of FY'05 and increased 16% over the second quarter of FY'04 based on an increase in contracts and projects awarded primarily from new customers. Hardware and software revenue decreased 1% compared with the first quarter of FY'05 and 12% over the second quarter of FY'04. Total gross profit was $3.4 million, the same as in the prior quarter but down from the $3.8 million recorded in same quarter last year. Selling and administrative expenses decreased to $2.7 million in the second quarter compared with $3.3 million in the first quarter of FY'05 and $2.9 million recorded in the same quarter of the prior year. This decrease occurred due to a reduction in headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. and facility lease costs. The above resulted in positive operating earnings of $0.7 million for the second quarter, an increase from the $0.1 million recorded in the first quarter of FY'05 but down slightly from the $0.8 million recorded in the second quarter of FY'04. This marks the ninth consecutive quarter of positive operating earnings. Amortization, interest and exchange for the second quarter were $0.5 million, unchanged from the first quarter of FY'05 and down from the $0.6 million recorded in the second quarter of FY'04. As a result, net income for the quarter was $0.2 million, an improvement of $0.5 million from the net loss of $0.3 million recorded in the first quarter of FY'05, but down slightly from net income of $0.3 million recorded in the second quarter of FY'04. "I believe that our results this quarter, particularly as they relate to the 19% growth in services revenues, provide clear validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. that our mid-market outsourcing strategy is beginning to take hold," 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. "In fact, during the quarter OnX was awarded or extended approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.5 million in IT outsourcing contracts, which came primarily from mid-sized organizations". Liquidity and Capital Resources OnX's cash balance improved by $2.4 million to $1.4 million at the end of the second quarter of fiscal 2005 compared with a use of its line of credit of $1.0 million at the end of the first quarter of fiscal 2005. OnX generated $2.7 million in cash from operations during the quarter and used $0.3 million to repay 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. and invest in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . OnX continues to have available an unused $6.0 million operating line of credit. "The continued generation of positive operating earnings and cash flow has enabled us to pay down debt and develop new offerings to further grow our services revenue," stated Daren Selfe C.A., CFO See Chief Financial Officer. of OnX.
Financial Highlights
---------------------
(in 000's of CDN Dollars except per share amounts)
Q2 Q1 Q2
FY'05 FY'05 FY'04
--------------------------------
Sales
Hardware and Software $ 12,242 $ 12,342 $ 13,876
Professional Services 3,825 3,221 3,418
Managed Services 600 508 385
--------------------------------
Total Sales $ 16,667 $ 16,071 $ 17,679
Cost of sales 13,278 12,648 13,911
Gross profit
Hardware and Software 1,869 1,853 2,121
15.3% 15.0% 15.3%
Professional Services 1,397 1,355 1,575
36.5% 42.1% 46.1%
Managed Services 123 215 72
20.5% 42.3% 18.7%
--------------------------------
Gross profit 3,389 3,423 3,768
Gross profit percentage 20.3% 21.3% 21.3%
Selling and administrative expenses 2,726 3,303 2,929
--------------------------------
Operating earnings $663 $120 $839
Amortization 419 413 571
Interest 70 48 77
Exchange - - (70)
--------------------------------
Net income (loss) $174 ($341) $261
--------------------------------
--------------------------------
--------------------------------
Basic and diluted earnings (loss)
per share $0.00 ($0.01) $0.00
--------------------------------
OnX Enterprise Solutions Inc.
Consolidated Balance Sheets
As at October 31 and April 30, 2004
(In thousands of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
October 31 April 30
(Unaudited)
---------------------------------------------------------------------
Assets
Current assets:
Cash $ 1,384 $ 7,769
Accounts receivable 17,094 10,533
Prepaid expenses 945 763
--------------------------------------------------------------------
19,423 19,065
Capital assets 4,732 5,360
---------------------------------------------------------------------
$ 24,155 $ 24,425
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 14,582 $ 14,084
Accrued liabilities 1,702 1,071
Deferred revenue 214 900
Current portion of long-term debt 1,000 1,000
Current portion of obligations under
capital leases 49 100
--------------------------------------------------------------------
17,547 17,155
Long-term debt 817 1,317
Obligations under capital leases 54 79
Long-term facility lease accrual 235 251
Shareholders' equity 5,502 5,623
---------------------------------------------------------------------
$ 24,155 $ 24,425
---------------------------------------------------------------------
---------------------------------------------------------------------
OnX Enterprise Solutions Inc.
Consolidated Statements of Operations (unaudited)
For the three and six months ended October 31, 2004 and 2003
(In thousands of Canadian dollars, except share amounts)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended Six months ended
October 31 October 31
2004 2003 2004 2003
---------------------------------------------------------------------
Sales
Hardware and software $ 12,242 $ 13,876 $ 24,584 $ 24,119
Professional services 3,825 3,418 7,046 7,210
Managed services 600 385 1,108 927
---------------------------------------------------------------------
Sales 16,667 17,679 32,738 32,256
Cost of Sales
Hardware and software 10,373 11,755 20,862 20,455
Professional services 2,428 1,843 4,294 3,747
Managed services 477 313 770 620
---------------------------------------------------------------------
Cost of Sales 13,278 13,911 25,926 24,822
Gross Profit
Hardware and software 1,869 2,121 3,722 3,664
15.3% 15.3% 15.1% 15.2%
Professional services 1,397 1,575 2,752 3,463
36.5% 46.1% 39.1% 48.0%
Managed services 123 72 338 307
20.5% 18.7% 30.5% 33.1%
---------------------------------------------------------------------
Gross Profit 3,389 3,768 6,812 7,434
20.3% 21.3% 20.8% 23.0%
Expenses:
Selling 1,287 1,460 2,725 2,690
Administrative 1,439 1,469 3,304 3,156
---------------------------------------------------------------------
2,726 2,929 6,029 5,846
---------------------------------------------------------------------
Income before amortization,
interest and exchange 663 839 783 1,588
Amortization of capital assets 419 571 832 1,104
Interest and bank charges 70 77 118 183
Exchange gain - (70) - (70)
---------------------------------------------------------------------
489 578 950 1,217
---------------------------------------------------------------------
Net income (loss) $ 174 $ 261 $ (167) $ 371
---------------------------------------------------------------------
---------------------------------------------------------------------
Deficit, beginning of period (71,440) (70,442) (70,792) (70,552)
Adjustment for stock based
compensation - - (307) -
---------------------------------------------------------------------
Deficit, end of period $ (71,266)$(70,181) $(71,266) $(70,181)
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic and diluted earnings
(loss) per share $ - $ - $ - $ 0.01
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic weighted average common
shares outstanding 59,493,312 59,493,307
53,319,764 53,247,491
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted weighted average
common shares outstanding 60,426,775 60,396,567
58,291,486 56,834,565
---------------------------------------------------------------------
---------------------------------------------------------------------
OnX Enterprise Solutions Inc.
Consolidated Statements of Cash Flows (unaudited)
For the three and six months ended October 31, 2004 and 2003
(In thousands of Canadian dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended Six months ended
October 31 October 31
2004 2003 2004 2003
---------------------------------------------------------------------
Cash provided by (used in):
Operations:
Income (loss) from operations $ 174 $ 261 $ (167) $ 371
Items not involving cash:
Amortization of capital
assets and intangibles 419 571 832 1,104
Stock based compensation 21 - 46 -
---------------------------------------------------------------------
614 832 711 1,475
Change in non-cash operating
working capital 2,078 (283) (6,300) (3,158)
---------------------------------------------------------------------
2,692 549 (5,589) (1,683)
---------------------------------------------------------------------
Financing:
Decrease in bank indebtedness (956) - - -
Payments on obligations under
capital leases (10) (134) (76) (276)
Repayment of long-term debt (250) (250) (500) (500)
Long-term facility lease accrual (8) (104) (16) (209)
Issuance of common shares, net
of issue costs - 1,668 - 1,668
Issuance of warrants, net of
issue costs - 372 - 372
---------------------------------------------------------------------
(1,224) 1,552 (592) 1,055
---------------------------------------------------------------------
Investments:
Purchase of capital assets (84) (213) (204) (365)
---------------------------------------------------------------------
(84) (213) (204) (365)
---------------------------------------------------------------------
Increase (decrease) in cash 1,384 1,888 (6,385) (993)
Cash beginning of period - 84 7,769 2,965
---------------------------------------------------------------------
Cash end of period $ 1,384 $ 1,972 $ 1,384 $ 1,972
---------------------------------------------------------------------
---------------------------------------------------------------------
About OnX Enterprise Solutions Inc. OnX Enterprise Solutions is a leading IT services organization focused on delivering superior customer value by way of our proven consulting, integration and outsourcing solutions. For over two decades, OnX has been helping organizations grow revenues, reduce costs and, overall, manage the complexity associated with information technology. 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. OnX Enterprise Solutions 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. . 1) Operating earnings is comprised of gross profit less selling and administrative expenses and therefore reflects income before amortization, interest and exchange gains. 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) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion