Orezone Gold Corporation press release
OSI Geospatial Inc Reports 2009 Third Quarter Results
TSX - Toronto Stock Exchange · Gold · Silver · Canada
Oct. 15, 2009 (Canada NewsWire Group) --
OTTAWA, Oct. 15 /CNW Telbec/ -- OSI Geospatial Inc (TSX: OSI) ("OSI" or the "Company") today announced its financial results for the third quarter ending August 31, 2009 reported in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles. OSI Geospatial Inc. delivers advanced marine navigation and command and control systems that provide shared real-time situational awareness for military and security applications
For the third quarter of 2009, OSI reported consolidated revenue of $6.2 million, compared to the revenue reported in the third quarter of 2008 of $6.3 million. For the nine months ending August 31, 2009, the company reported revenue of $18.3 million compared to $18.7 million reported in the same period of 2008.
The Company reported a net loss of $293,000 before taxes and $263,000 after taxes compared with a net loss of $692,000 before taxes and $683,000 after taxes in the third quarter of 2008. The net loss attributable to common shareholders was $410,000 or $0.01 per share, compared to the net loss of $839,000 or $0.02 per share in the same quarter of 2008. For the nine months ending August 31, 2009, the company reported a net loss of $2.2 million before taxes and $2.0 million after taxes compared to a $2.8 million loss before taxes and $2.4 after taxes in the same period of 2008.
As of August 31, 2009, the Company did not meet certain covenants as outlined in the credit facilities agreement with its Canadian bank. Subsequent to the third quarter, Company was notified that its line of credit limit would be reduced to $1.35 million due to the Company's failure to remedy the covenant breaches.
Third Quarter Business Highlights Announced 10th new WECDIS customer with signing of the $1.3 million Royal Netherlands Navy contract Secured first DC4S contract with Department of Homeland Security in the area of border patrol Signed first R&D contract with Canadian Department of National Defence Signed follow-on contract with US Navy to provide support force protection security exercises Signed first sub-contract with L-3 Global Security & Engineering Solutions (L3 GS & ES) to provide IVA services for U.S. national security exercises Successful completion of Increment 1 of U.S. Army GSS (Ground Soldier System, formerly GSE) program
"In the third quarter, we were successful in securing our 10th naval customer. The Dutch Navy win is further evidence of our expanding leadership position in the WECDIS market," said Ken Kirkpatrick, president and CEO. "In addition, I am pleased to report that we have successfully completed Increment 1 for the Ground Soldier System project and recently signed the contract for Increment II of this important project."
For further comment, please join our Conference Call scheduled for 5:00PM, Eastern Time. The details are listed below.
Conference Call
OSI Geospatial will present the results of the 2009 third quarter at 5:00PM Eastern Time (2:00 PM Pacific Time), Thursday, October 15, 2009. To listen to the conference call live by telephone, dial +1-800-319-4610 for participants in North America or +1-604-638-5340 for Vancouver/Lower Mainland and international participants approximately ten minutes before the call is scheduled to begin. A telephone playback will be available beginning approximately one hour after the call. Dial +1-800-319-6413 for North American callers or +1-604-638-9010 for Vancouver and international callers. Enter access code 7826 followed by the number sign. The telephone replay will be available for three months. For the live webcast, please go to http://services.choruscall.com/links/osi091013.html. A replay version of the webcast can be accessed for three months on the company's investor website at http://www.osigeospatial.com/investors/default.htm.
About OSI Geospatial
OSI Geospatial Inc. delivers advanced marine navigation and command and control systems that provide 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. The company is publicly traded on the Toronto Stock Exchange as OSI. 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 (C) 2009 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, DC4S- Base, Commander & Assaulter and C3CORE are registered trademarks of CHI Systems Inc., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and August be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.
OSI Geospatial Inc. Consolidated Balance Sheets (unaudited) August 31, November 30, In thousands of Canadian dollars 2009 2008 Assets Current assets Cash $ 528 $ - Accounts receivable and unbilled revenue 6,986 11,183 Inventory 1,367 1,407 Prepaid expenses and deposits 417 388 Income taxes recoverable 71 - Current portion of future income tax asset 385 338 9,754 13,316 Deferred development costs 615 437 Future income tax asset 765 823 Equipment and furnishings 1,557 1,735 Intangible and other assets 509 732 Goodwill 9,030 10,269 $ 22,230 $ 27,312 Liabilities Current liabilities Bank indebtedness $ 1,312 $ 2,015 Accounts payable and accrued liabilities 3,734 4,519 Income taxes payable - 9 Unearned revenue 521 256 Current portion of deferred rent 41 41 Current portion of capital lease obligations 84 88 5,692 6,928 Deferred rent 270 347 Capital lease obligations 62 156 Unearned revenue 206 290 6,230 7,721 Shareholders' Equity Issued and outstanding Class A, Series A preference shares 30 30 Class B, Series 2 preference shares 5,383 5,731 Common shares 29,862 29,748 35,275 35,509 Warrants 4,545 4,898 Contributed surplus 3,319 2,674 Accumulated deficit (26,125) (24,121) Accumulated other comprehensive (loss) income (1,014) 631 16,000 19,591 $ 22,230 $ 27,312 OSI Geospatial Inc. Consolidated Statements of Loss and Deficit (unaudited) In thousands of Canadian dollars, Three months ended Nine months ended except share August 31, August 31, related data 2009 2008 2009 2008 Revenue Marine systems $ 2,003 $ 3,176 $ 6,642 $ 8,015 Land and air systems 2,890 2,209 8,602 7,501 Mapping 1,319 942 3,008 3,200 6,212 6,327 18,252 18,716 Cost of sales 3,850 4,081 12,236 12,263 Gross profit 2,362 2,246 6,016 6,453 Expenses (income) General and administrative 1,379 1,415 4,164 4,364 Sales and marketing 867 909 2,494 3,012 Engineering 175 300 813 874 Amortization 106 113 329 378 Interest expense 23 32 74 87 Interest income - (4) (3) (8) Foreign exchange loss (gain) 1 35 (15) 88 Loss on disposal of intangible and other assets - - - 28 Technology Partnerships Canada royalty 104 138 313 384 2,655 2,938 8,169 9,207 Net loss before income taxes (293) (692) (2,153) (2,754) Future income tax recovery (11) - (151) (38) Current income tax recovery (19) (9) (4) (318) Income tax recovery (30) (9) (155) (356) Net loss $ (263) (683) $ (1,998) $ (2,398) Accumulated deficit, beginning of period $ (25,859) $ (24,506) $ (24,121) $ (22,420) Dividends on Class B, Series 2 preference shares (3) - (6) (332) Tax expense on dividends - 39 - - Accumulated deficit, end of period $ (26,125) $ (25,150) $ (26,125) $ (25,150) Net loss attributable to common shareholders $ (410) $ (839) (2,455) $ (2,867) Loss per share basic and diluted $ (0.01) $ (0.02) $ (0.05) $ (0.06) Weighted average number of common shares outstanding basic and diluted 47,416,118 46,956,439 47,129,032 46,956,439 OSI Geospatial Inc. Consolidated Statements of Cash Flows (unaudited) Three months Nine months In thousands of ended August 31, ended August 31, Canadian dollars 2009 2008 2009 2008 Cash flows from (used in) operating activities Net loss for the period $ (263) $ (683) $ (1,998) $ (2,398) Items not affecting cash Amortization 157 167 477 536 Loss on disposal of equipment and furnishings - - - 28 Stock-based compensation 10 24 58 34 Future income tax recovery (11) - (151) (38) (107) (492) (1,614) (1,838) Changes in non-cash working capital items Accounts receivable (634) 325 3,746 3,986 Inventory (276) 369 37 114 Prepaid expenses and deposits 126 129 (61) 3 Accounts payable and accrued liabilities 16 (582) (606) (1,630) Income taxes payable 6 (37) (85) (343) Deferred rent (11) (10) (31) (32) Unearned revenue 350 519 182 224 (423) 713 3,182 2,322 (530) 221 1,568 484 Cash flows used in investing activities Deferred development costs (143) (140) (196) (386) Additions to equipment and furnishings (47) (45) (141) (151) Additions to intangible and other assets (3) (2) (19) (97) (193) (187) (356) (634) Cash flows from (used in) financing activities Advances from (repayment of) operating line of credit 762 (37) (647) 463 Repayment of capital lease obligations (41) (17) (76) (31) Class B preference share dividends declared and paid (3) - (6) (332) Tax on dividends - 39 - - 718 (15) (729) 100 Effect of foreign exchange on cash balances 20 (19) 45 50 Change in cash 15 - 528 - Cash - beginning of period 513 - - - Cash - end of period $ 528 $ - $ 528 $ -