Perle Systems Reports Significant Sales and Earnings Growth.
TORONTO--(BUSINESS WIRE)--Sept. 23, 1998--
- First Quarter Sales Increase 28% -
Perle Systems Perle Systems is a Canadian company based in Markham, Ontario that develops and manufactures serial communications products. Product lines include terminal servers, device servers, serial console servers, serial cards, USB to serial adapters and remote access products. Limited (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PERLF)(TSE See Tokyo Stock Exchange.
1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). :PL) today reported sales of CN$11,387,736 for the first quarter ended August 31, 1998 and net profit of CN$457,859. This compares to sales of CN$8,913,544 and net profit of CN$39,053 in the first quarter of fiscal 1998. Earnings per share were CN$0.06 for the quarter, compared to CN$0.01 per share for the comparable quarter last year.
Quarterly sales increased 28% over those in the comparable quarter of fiscal 1998. This increase is primarily attributed to the Company's new Perle 594e Thin Client network controller product line.
Gross margin was 73% for the first quarter of fiscal 1999, as compared to 67% in the comparable quarter of fiscal 1998.
President and Chief Executive officer Joe Perle remarked, "Following a record year for earnings in fiscal 1998 of CN$0.31 per share, I am extremely pleased that we have achieved this record first quarter. We set a target this year of 20% growth in sales and earnings on an annual basis. These outstanding first quarter results put us clearly ahead of this target. Beyond this internal growth expectation, we are progressing with our acquisition plans and are hopeful of completing a transaction during this fiscal year. With our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market now over CN$2 billion dollars, I am optimistic op·ti·mist
1. One who usually expects a favorable outcome.
2. A believer in philosophical optimism.
op about the future."
Perle Systems Limited, founded in 1976, sells products to the remote access segment of the computer networking
Computer networking is the engineering discipline concerned with communication between computer systems or devices. market. Users in this segment require access from a remote site (e.g. a branch or home office, or hotel, etc.) to a more powerful host/server computer or local area network. Sophisticated network communications software (communications, software) communications software - Application programs, operating system components, and probably firmware, forming part of a communication system. These different software components might be classified according to the functions within the Open Systems and hardware are required to permit and efficiently manage the transmission of data. Perle develops this software and integrates it into its hardware products. Perle develops, designs, manufactures and sells remote network controllers, workstation workstation
Computer intended for use by one person, but with a much faster processor and more memory than an ordinary personal computer. Workstations are designed for powerful business applications that do large numbers of calculations or require high-speed graphical controllers, and LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. Remote Access Servers that are used to interconnect (1) To attach one device to another.
(2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. its customers' computing computing - computer resources.
For more information on Perle and its products, access the Company's web site at http://www.perle.com.
The Company's quarterly results vary depending on many factors including, but not limited to, fluctuations in sales levels. These quarterly results are not necessarily indicative indicative: see mood. of those in the future. 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. in this release, including targeted sales and profits and acquisition plans, are made pursuant to the "safe harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third party suppliers intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission. -0-
PERLE SYSTEMS LIMITED CONSOLIDATED BALANCE SHEETS (Canadian dollars) As at August 31, 1998 May 31, 1998 ASSETS (Unaudited) (Audited) Current: Cash and cash equivalents $6,354,974 $6,776,075 Accounts receivable 9,421,165 9,453,271 Inventories 2,295,584 2,022,257 Prepaid expenses 1,523,479 1,303,276 Income taxes recoverable 772,477 939,585 Total current assets 20,367,679 20,494,464 Capital assets, net 2,261,058 2,409,542 Other assets 8,140,941 7,627,423 Total Assets $30,769,678 $30,531,429 LIABILITIES AND SHAREHOLDERS' EQUITY Current: Accounts payable and accrued liabilities 5,797,495 5,919,439 Deferred revenue 2,218,067 2,315,733 Total current liabilities 8,015,562 8,235,172 Shareholders' Equity: Common share capital - authorized: unlimited (issued and outstanding: 7,172,508) 27,539,584 27,539,584 Deficit (4,785,468) (5,243,327) Total Shareholders' Equity 22,754,116 22,296,257 Total Liabilities and Shareholders' Equity $30,769,678 $30,531,429 CONSOLIDATED STATEMENTS OF INCOME (Canadian dollars) For the three months ended August 31 1998 1997 (Unaudited) (Unaudited) Sales $11,387,736 $8,913,544 Expenses: Cost of sales 3,108,623 2,923,841 Selling, general and administration 4,442,867 3,618,480 Advertising and marketing 1,377,073 1,022,202 Research and development expenditures (net of ITCs) 1,735,881 1,108,709 Amortization of capital assets 276,105 247,779 Interest income (61,545) (46,520) 10,879,004 8,874,491 Income before income taxes 508,732 39,053 Income tax expense 50,873 -- Net income for the period $457,859 $39,053 Earnings per common share - basic $0.06 $0.01 - fully diluted $0.06 $0.01 CONSOLIDATED STATEMENTS OF DEFICIT (Canadian dollars) For the three months ended August 31 1998 1997 (Unaudited) (Unaudited) Deficit, beginning of the period ($5,243,327) ($7,485,876) Net income for the period 457,859 39,053 Deficit, end of the period ($4,785,468) ($7,446,823) PERLE SYSTEMS LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Canadian dollars) For the three months ended August 31 1998 1997 Cash provided by (used in): (Unaudited) (Unaudited) Operating activities Net income for the period $457,859 $39,053 Add (deduct) items not affecting cash: Investment tax credits recoverable (297,000) (230,000) Amortization of capital assets 276,105 247,779 Deferred income taxes (32,789) (7,093) 404,175 49,739 Net change in non-cash working capital balances related to operations (513,926) 1,732,497 Cash used in operating activities (109,751) 1,782,236 Investing activities Loans to shareholders, officers and directors (183,729) (2,790) Additions to capital assets (127,621) (278,387) Cash used in investing activities (311,350) (281,177) Financing activities Issuance of Common Shares -- -- Cash provided by financing activities -- -- Net increase (decrease) in cash and cash equivalents during the period (421,101) 1,501,059 Cash and cash equivalents, beginning of the period $6,776,075 $4,863,935 Cash and cash equivalents, end of the period $6,354,974 $6,364,994 Components of net change in non-cash working capital balances related to operations: Accounts receivable $32,106 $4,503,370 Inventory (273,327) (15,020) Prepaid expenses (220,203) 129,110 Income taxes recoverable 167,108 12,216 Accounts payable and accrued liabilities (121,944) (2,710,837) Deferred revenue (97,666) (186,342) ($513,926) $1,732,497