OSI Geospatial Inc. Reports 2011 First Quarter Results

BURNABY, BC, April 29 /CNW/ - OSI Geospatial Inc. (TSX: OSI) today announced its financial results for the first quarter of fiscal year 2011 ending February 28, 2011, reported in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

For the first quarter of 2011, OSI Geospatial Inc. reported consolidated revenue of $2.7 million compared to $3.3 million reported in the first quarter of 2011. The Company reported a net loss of $1.3 million before taxes and a net loss after taxes of $1.3 million compared with net income of $4.3 million before taxes and net income after taxes of $2.1 million in the first quarter of 2010. The first quarter of 2010 included a gain before tax of $5.2 million on the sale of its non-core soldier systems intellectual property.

For the first quarter of 2011, the net loss attributable to common shareholders was $1.4 million or $(0.02) per share, compared to a net income of $2.0 million or $0.05 per share in the first quarter of 2010.

About OSI Geospatial
OSI Geospatial Inc. operates two distinct business units: Offshore Systems Ltd. (based in Vancouver, British Columbia), a world-leading naval fleet supplier of integrated navigation and tactical solutions; and CHI Systems, Inc. (based in Philadelphia, Pennsylvania), a leading-edge research, development, and systems integration supplier of technology solutions for defense, aerospace, health, and bioscience markets.  OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. The Company is publicly traded on the TSX Venture Exchange. For additional information please visit www.osigeospatial.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of OSI Geospatial.  Any such forward-looking statements are subject to risks and uncertainties and OSI Geospatial'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 Geospatial's financial results are detailed in disclosure documents filed from time to time with the applicable Canadian securities regulatory authorities.

Data subject to change without notice.

OSI Geospatial Inc.
Interim Condensed Consolidated Balance Sheets (Unaudited)

In thousands of Canadian dollars   February 28, 2011   November 30, 2010
Assets        
Current assets        
Cash and cash equivalents $ 1,470 $ 758
Non-cash current assets   4519   8,292
    5,989   9,050
         
Fixed assets   956   1,025
Other long term assets   6,870   9,786
Goodwill, intangible, and other assets,   4,285   4,512
  $ 12,111 $ 15,323
Liabilities          
Current liabilities $ 3,354 $ 4,954
Long term liabilities   469   546
    3,823   5,500
Shareholders' Equity        
Capital stock and warrants   33,599   33,599
Contributed surplus   9,803   9,765
Accumulated deficit   (33,312)   (32,025)
Accumulated other comprehensive loss   (1,802)   (1,516)
    8,288   9,823
  $ 12,111 $ 15,323

OSI Geospatial Inc.
Interim Condensed Consolidated Statements of Income (Loss) and Deficit (Unaudited)

  Three Months ended February 28,
In thousands of Canadian dollars   2011   2010
         
Revenue $ 2,690 $ 3,330
         
Gross profit   899   1,193
         
Expenses        
Sales, engineering, general and administrative   1,579   1,967
Amortization   77   79
Interest expense   10   38
         
         
Net loss before other items   (767)   (891)
         
Gain on sale of intellectual property   -   5,227
Restructing costs   (410)   -
Loss on lease termination   (56)   -
Loss on disposal of furniture and fixtures   (20)   -
         
Net income (loss) before income taxes   (1,253)   (4,336)
         
Income tax expense (recovery)   (36)   1,959
         
Net income (loss) from continuing operations $ (1,217) $ 2,377
Net loss from discontinued operations   (67)   (295)
Net income (loss)   (1,284)   2,082
         
Earnings (loss) per share - Basic $ (0.02) $ 0.05
Earnings (loss) per share - Diluted   (0.02)   0.04

OSI Geospatial Inc.
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)

  Three Months ended February 28,
In thousands of Canadian dollars   2011   2010
         
Cash flows from (used in) operating activities        
Net income (loss) for the period $ (1,217) $ 2,377
  Items not affecting cash   169   (4,211)
         
    (1,048)   (1,834)
Changes in non-cash working capital items   657   1,281
         
Cash used in continuing operations   (391)   (553)
Cash used in discontinued operations   (134)   (936)
    (525)   (1,489)
         
Cash flows from (used in) investing activities   1,642   4,764
Cash flows used in financing activities   (337)   (787)
Effect of foreign exchange on cash balances   (68)   42
         
Increase in cash   712   2,530
Cash - beginning of period   758   315
         
Cash - end of period $ 1,470 $ 2,845

 

SOURCE OSI Geospatial Inc.

For further information:

Jim Girard
Interim President and Chief Executive Officer
+1 778-373-4600
+1 888 880 9797
invest@osigeospatial.com

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OSI Geospatial Inc.

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