GoldMining Inc. press release

OSI Geospatial Inc. Reports 2010 Fourth Quarter and Year End Results

2011-02-25

TSX - Toronto Stock Exchange · Gold · Copper · Silver · Uranium · Canada

Feb. 25, 2011 (Canada NewsWire Group) --

OTTAWA, Feb. 25 /CNW/ - OSI Geospatial Inc. (TSX: OSI) ("OSI Geospatial") today announced its financial results for the fourth quarter of fiscal year 2010 and 12 months ending November 30, 2010, reported in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

For the fourth quarter of 2010, OSI Geospatial reported consolidated revenue from continuing operations of $4.6 million, an increase of 15% from the $4.0 million reported in the fourth quarter of 2009. The consolidated revenue for the full year of 2010 from continuing operations was $13.5 million compared to $19.2 million in the prior year, a decrease of 30%.

For the fourth quarter of 2010, the Company reported a net loss from continuing operations of $0.8 million before taxes and a net loss from continuing operations after taxes of $0.5 million compared with net loss from continuing operations of $5.3 million before taxes and losses from continuing operations after taxes of $5.3 million in the fourth quarter of 2010. The fourth quarter of 2009 includes a one-time restructuring charge of $0.4 million and a non-cash goodwill impairment charge of $4.0 million. For the 12 months ending November 30, 2010, the Company reported a net loss from continuing operations of $0.1 million before taxes and $0.2 million after taxes compared to a $7.4 million loss before taxes and a $7.7 million loss after taxes in the same period of 2009. The 12 months ending November 30, 2010, include a one-time loss on sublease of $0.4 million, a restructuring charge of $0.9 million and a gain on sale of intellectual property of $5.2 million. The 12 months ending November 30, 2009 include a one-time restructuring charge of $0.7 million and a non-cash goodwill impairment charge of $4.0 million.

During 2010, the Company engaged in a plan to sell its mapping business unit. The sale closed on January 31, 2011, for proceeds of $1.15 million. The Mapcon business unit is presented as a discontinued operation in the Company's 2010 results. The loss from discontinued operations for the 12 months ended November 30, 2010, was $0.1 million compared with $0.3 million for the 12 months ended November 30, 2009.

For the fourth quarter of 2010, the net loss available to common shareholders was $0.6 million or $0.01 per share, compared to a net loss available to common shareholders of $5.9 million or $0.12 per share in 2009. For the full year of 2010, the net loss available to common shareholders was $0.5 million or $0.01 per share compared to the net loss available to common shareholders of $8.3 million or $0.18 per share in the prior year.

About OSI Geospatial

OSI Geospatial Inc. delivers advanced geospatial systems and software that enable shared real-time situational awareness for military, safety and security applications. Our products and services enable our customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. This capability provides our customers with enhanced operational performance, safety and security through shared real-time situational awareness. OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. For additional information please visit www.osigeospatial.com.

Forward-Looking Statements

This press release contains forward-looking statements and information which reflect the current view of OSI Geospatial Inc. ("OSI") with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties, and OSI's actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect OSI's financial results are detailed in disclosure documents filed from time to time with the applicable Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Copyright © 2011 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. iGEN is a registered trademark of CHI Systems Inc., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.

OSI Geospatial Inc. Consolidated Balance Sheets As at November 30, 2010 and 2009

| In thousands of Canadian dollars | 2010 | 2009 | | | | Assets | | | | | | Current assets | | | | | | Cash and cash equivalents | $ | 758 | $ | 315 | | Restricted cash | | 513 | | - | | Accounts receivable and unbilled revenue | | 3,522 | | 3,897 | | Income taxes recoverable | | 131 | | - | | Inventory | | 921 | | 1,139 | | Prepaid expenses and deposits | | 292 | | 367 | | Current portion of future income tax asset | | 101 | | 1,041 | | Current assets held-for-sale | | 2,812 | | 2,525 | | | | 9,050 | | 9,284 | | | | | | | | Restricted cash | | 61 | | - | | Deferred development costs | | 551 | | 653 | | Future income tax asset | | 124 | | 113 | | Equipment and furnishings | | 1,025 | | 1,196 | | Intangible and other assets | | 314 | | 275 | | Goodwill | | 4,198 | | 4,324 | | | $ | 15,323 | $ | 15,845 | | Liabilities | | | | | | Current liabilities | | | | | | Bank indebtedness | $ | - | $ | 685 | | Factored advances payable | | 325 | | 240 | | Accounts payable and accrued liabilities | | 2,929 | | 2,868 | | Unearned revenue | | 310 | | 547 | | Current portion of capital lease obligations | | 25 | | 68 | | Current portion of deferred rent | | 41 | | 34 | | Current portion of accrued loss on sublease | | 134 | | - | | Current liabilities held-for-sale | | 1,190 | | 997 | | | | 4,954 | | 5,439 | | | | | | | | Capital lease obligation | | 28 | | 54 | | Unearned revenue | | 65 | | 178 | | Deferred rent | | 219 | | 211 | | Accrued loss on sublease | | 234 | | - | | | | 5,500 | | 5,882 | | Shareholders' Equity | | | | | | Issued and outstanding | | | | | | Class A, Series A preference shares | | 30 | | 30 | | Class B, Series 2 preference shares | | 2,457 | | 5,383 | | Common shares | | 31,112 | | 29,876 | | | | 33,599 | | 35,289 | | | | | | | | Warrants | | - | | 4,546 | | | | | | | | Contributed surplus | | 9,765 | | 3,322 | | | | | | | | Accumulated deficit | | (32,025) | | (31,838) | | | | | | | | Accumulated other comprehensive loss | | (1,516) | | (1,356) | | | | 9,823 | | 9,963 | | | $ | 15,323 | $ | 15,845 |

OSI Geospatial Inc. Consolidated Statements of Operations For the years ended November 30, 2010 and 2009

| In thousands of Canadian dollars, except share related data | | 2010 | | 2009 | | | Revenue | | | | | | | Maritime navigation and tactical solutions | $ | 6,059 | $ | 9,562 | | | Advanced technology research and development | | 7,442 | | 9,674 | | | | | 13,501 | | 19,236 | | | | | | | | | | Cost of sales | | 8,456 | | 12,924 | | | | | | | | | | Gross profit | | 5,045 | | 6,312 | | | | | | | | | | Expenses (income) | | | | | | | General and administrative | | 4,461 | | 4,640 | | | Sales and marketing | | 2,333 | | 2,777 | | | Engineering | | 534 | | 872 | | | Technology Partnerships Canada royalty | | 288 | | 394 | | | Amortization | | 318 | | 390 | | | Interest expense | | 70 | | 111 | | | Interest income | | (11) | | (8) | | | Foreign exchange loss | | 24 | | 1 | | | Loss on disposal of equipment and furnishings | | 10 | | - | | | | | 8,027 | | 9,177 | | | | | | | | | | Loss beforeother items | | (2,982) | | (2,865) | | | | | | | | | | Other items (expenses) recovery | | | | | | | Gain on sale of intellectual property | | 5,214 | | - | | | Loss on sublease | | (373) | | - | | | Goodwill impairment charge | | - | | (4,027) | | | Restructuring costs | | (852) | | (652) | | | Income (loss) before income taxes | | 1,007 | | (7,544) | | | | | | | | | | Future income tax expense (recovery) | | 931 | | (187) | | | Current income tax expense | | 186 | | 9 | | | Income tax expense (recovery) | | 1,117 | | (178) | | | Net loss from continuing operations | | (110) | | (7,366) | | | Net loss from discontinued operations | | (72) | | (345) | | | Net loss | $ | (182) | $ | (7,711) | | | | | | | | | | Net loss available to common shareholders | $ | (540) | $ | (8,315) | | | | | | | | | | Basic and diluted loss per share | | | | | | | | Continuing operations | $ | (0.01) | $ | (0.17) | | | Discontinued operations | | (0.00) | | (0.01) | | | Net loss | | (0.01) | | (0.18) | | | | | | | | | Weighted average number of common shares outstanding | | | | | | | | Basic and diluted | | 51,513,586 | | 47,250,113 |

OSI Geospatial Inc. Consolidated Statements of Cash Flows November 30, 2010 and 2009

| In thousands of Canadian dollars | | 2010 | | 2009 | | | | Cash flows from (usedin) operating activities | | | | | | | | Net loss from continuing operations | $ | (110) | $ | (7,366) | | | | | Items not affecting cash | | | | | | | | | Amortization | | 385 | | 506 | | | | Stock-based compensation | | 207 | | 66 | | | | Gain on sale of intellectual property | | (5,214) | | - | | | | Goodwill impairment charge | | - | | 4,027 | | | | Future income taxes | | 931 | | (187) | | | | Loss on disposal of equipment and furnishings | | 10 | | - | | | | Loss on sublease | | 373 | | - | | | | (3,418) | | (2,954) | | | | Changes in non-cash working capital items | | | | | | | | | Accounts receivable and unbilled revenue | | 319 | | 4,049 | | | | Inventory | | 218 | | 265 | | | | Prepaid expenses and deposits | | 70 | | (20) | | | | Accounts payable and accrued liabilities | | (148) | | (328) | | | | Income taxes payable | | (131) | | (16) | | | | Unearned revenue | | (347) | | 182 | | | | Deferred rent | | (34) | | (34) | | | | | (53) | | 4,098 | | | | Cash provided by continuing operations | | (3,471) | | 1,144 | | | | Cash provided by discontinued operations | | 108 | | 773 | | | | Cash provided by operating activities | | (3,363) | | 1,917 | | | | Cash flows from (used in) investing activities | | | | | | | | Net increase in restricted cash | | (589) | | - | | | | Development costs deferred | | (30) | | (237) | | | | Additions to equipment and furnishings | | (81) | | (148) | | | | Additions to intangible and other assets | | (195) | | (24) | | | | Proceeds from sale of intellectual property and related tangible assets, net of costs to dispose | | 5,431 | | - | | | | Discontinued operations | | (74) | | (16) | | | | | | 4,462 | | (425) | | | | Cash flows from(used in) financing activities | | | | | | | | Net repayments of bank indebtedness | | (685) | | (1,275) | | | | Net advances from factoring facilities | | 89 | | 240 | | | | Repayment of capital lease obligations | | (66) | | (95) | | | | Issuance of shares related to exercise of stock options | | - | | 9 | | | | Class B preference share dividends declared and paid | | (5) | | (6) | | | | | | (667) | | (1,127) | | | | Effect of foreign exchange on cash balances | | 15 | | 36 | | | | | | | | | | | | Increase in cashand cash equivalents | | 447 | | 401 | | | | | | | | | | | | Cash andcash equivalents - beginning of year | | 401 | | - | | | | Cash andcash equivalents - end of year | $ | 848 | $ | 401 | | | | | | | | | | | | Cash and cash equivalents, continuing operations | $ | 758 | $ | 315 | | | | Cash and cash equivalents, discontinued operations | | 90 | | 86 | | | | | $ | 848 | $ | 401 | | |

Jim Girard Vice President Finance +1 778 373 4600 +1 778 373 0027 (FAX) invest@osigeospatial.com