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 TORONTO, March 10 /PRNewswire/ -- Promis Systems Corporation Ltd. (Toronto Stock Exchange: PSW) today reported record revenue and earnings for its 1992 fiscal year.
 Net income for the year jumped 72 percent to U.S.$1,227,700, and earnings per share were 79 cents compared to U.S.$715,300, or 77 cents per share for 1991. Per share figures for 1992 represent the weighted average number of common shares issued pursuant to the company's initial public offering completed on Nov. 5, 1992.
 Consolidated revenue rose approximately 3 percent in 1992 to U.S.$14,526,000 from U.S.$14,167,000 for the same period last year. Revenue for 1991 includes U.S.$3,885,000 of software sales to Samsung Electronics Co. Ltd. (Samsung). In 1992, no one customer accounted for more than 5 percent of the company's revenues. Said Elliot Wassarman, president and chief executive officer of Promis: "While we did not meet our targeted increase in revenues, we are very pleased with the improvement in profitability." Mr. Wassarman added that, "Despite weak economic conditions, Promis more than doubled its number of new customers this year compared to last."
 The following table sets out the company's audited results for fiscal 1992 and 1991.
 Consolidated Statements of Income
 (expressed in U.S. dollars)
 Years ended Dec. 31, 1992 1991
 Revenue $14,525,980 $14,166,928
 R&D 4,333,147 5,895,823
 Sales and marketing 4,792,113 4,185,318
 General & administrative 2,001,062 1,728,681
 Cost of hardware sale 331,490 452,229
 Depreciation & amort. 540,280 431,852
 Total 11,998,092 12,693,903
 Inc. from operations bef.
 the following 2,527,888 1,473,025
 Interest 380,180 400,394
 Inc. bef. inc. taxes 2,147,708 1,072,631
 Provision for inc. taxes 920,000 357,300
 Net inc. for the year 1,227,708 715,331
 Earnings per share $0.79 $0.77
 The increase in net income was the result of higher revenue, a more profitable sales mix and lower expenses. As the table shows, Promis' expenses were U.S.$12.0 million in 1992, as compared to U.S.$12.7 million for 1991.
 Expense increases of U.S.$0.6 million for sales and marketing were consistent with the company's strategies of extending its geographic presence, intensifying sales coverage and diversifying the application of its software to new industry groups. During 1992, Promis opened new offices in Los Angeles, Philadelphia, Orlando and Frankfurt, established new distributors in France, Spain and Taiwan, and added to its direct sales organization. Approximately 10 percent of the company's software and service revenues were derived from new markets in 1992, including the fibres, and pulp and paper industry.
 The termination of joint-development work with Samsung resulted in a 3.7 percent decline in 1992 research and development expenditures, as compared to 1991. In addition, the company redirected its expenditures toward the development of new object-oriented technologies and a new generation of plant floor management software. The feasibility of these technologies and products was confirmed during the last quarter of the year, and related costs incurred which will be recoverable through their sales were deferred until commencement of commercial production. As a result, the net amount of deferred costs increased by U.S.$1,345,000 as compared to 1991, and research and development expense declined accordingly.
 An increased amount of corporate activity accounts for the U.S.$0.3 million rise in general and administrative expenses.
 Comparison to Financial Forecast
 The following table compares the company's audited results for 1992 with the financial forecast prepared as at Sept. 16, 1992 and included in the company's prospectus dated Oct. 23, 1992.
 Consolidated Statements of Income
 (expressed in U.S. dollars)
 For the year ended
 Dec. 31, 1992 Audited Financial forecast
 Revenue $14,525,980 $16,603,000
 R&D 4,333,147 4,932,000
 Sales & management 4,792,113 4,857,000
 Gen. & administrative 2,001,062 2,487,000
 Cost of hardware sale 331,490 --
 Depreciation & amort. 540,280 530,000
 Total 11,998,092 13,806,000
 Inc. from operations
 bef. the following 2,527,888 2,797,000
 Interest - current 380,180 292,000
 Inc. bef. inc. taxes 2,147,708 2,505,000
 Provision for inc. taxes
 Current 430,000 96,000
 Deferred 490,000 1,056,000
 Total 920,000 1,152,000
 Net inc. for the year 1,227,708 1,353,000
 Earnings per share $0.79 $0.85
 Revenue was approximately U.S.$2,077,000 below the amount of U.S.$16,603,000 contained in the financial forecast. At the time the forecast was prepared, the company anticipated that approximately U.S.$6,400,000 of software sales would be generated to the end of the fiscal year. The actual amount of recorded software revenue was U.S.$4,117,000 and a further amount of approximately U.S.$1,500,000 was represented at year end by potential contracts which were under active negotiation.
 Net income for the year was U.S.$1,227,700 or 79 cents per share, compared to U.S.$1,353,000 or 85 cents per share. In addition to the above mentioned revenue shortfall, several other factors contributed to the change in net income. These factors included lower operating expenses than forecast, lower than anticipated interest income, and a more favorable effective income tax rate.
 Research and development expenses were U.S.$4,333,147, compared to U.S.$4,932,000 assumed in the financial forecast. This reduction is due primarily to an increase in the amount of costs deferred until development of certain new software is completed and commercial production of the software commences.
 Sales and marketing expenses were U.S.$4,792,113 as compared to U.S.$5,857,000, and represent 33 percent of actual revenue as compared to 35.3 percent of forecast revenue. A number of factors account for this decrease including lower revenue than forecast, lower headcount and office occupancy costs than were assumed, and a deferral of certain sales and marketing programs to 1993.
 General and administrative expenses were U.S.$2,001,000 compared to U.S.$2,487,000. The decrease is due mainly to lower spending than assumed, exchange benefits derived from conversion of the net proceeds of the offering into United States dollars and beneficial changes in the relative exchange rates between the Canadian and U.S. dollar.
 Net income was adversely affected by approximately U.S.$90,000 of higher net interest expense. This increase is the result of lower rates of interest earned on the net proceeds of the offering.
 Since its formation in 1978, Promis Systems Corporation Ltd. has become a predominant supplier of plant floor management software and manufacturing execution systems. Currently, more than 1,000 PROMIS software modules are installed in 17 countries at over 100 leading manufacturing sites. Promis helps businesses achieve higher productivity and lower manufacturing costs, improved product quality, faster delivery times and compliance with regulatory requirements.
 -0- 3/10/93
 /NOTE TO EDITORS: When referring to the company, please use Promis Systems Corporation or Promis (initial cap only). When referring to the company's product, please use PROMIS in all caps.
 PROMIS is a registered trademark of Promis Systems Corporation./
 /CONTACT: Gordon Wilde, vice president and CFO of Promis Systems Corporation, 416-960-0960/

CO: Promis Systems Corporation Ltd. ST: IN: CPR SU: ERN

PS-SH -- NY021 -- 8556 03/10/93 11:16 EST
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Date:Mar 10, 1993

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