Tri-Vision revenues rose 143% in fourth quarter and 41% for the year



    
    Highlights:
    -   V-chip licensing rate continued with 6 licenses announced during the
        quarter, including 4 for the U.S. market
    -   Tri-Vision completed a $4 million Bought Deal equity financing
    -   Tri-Vision negotiated a merger with Wi-LAN Inc., an intellectual
        property licensing company which subject to shareholder approval
    

    TORONTO, June 25 /CNW/ - Tri-Vision International Ltd./Ltée (TSX: TVL)
today reported its financial results for fourth quarter and year ended
March 31, 2007.
    Najmul Siddiqui, Tri-Vision's CEO, stated: "Our fourth quarter expanded
on gains made in the third quarter and showed marked upward movement. Results
from continuing operations are very encouraging as we maintained gross profit
margin above 40% for two consecutive quarters."

    
    Fourth quarter and Fiscal Year Financial Summary
    ------------------------------------------------
    Three months ended March 31, 2007, as compared to three months ended March
31, 2006, were:

                                         Q4 2007       Q4 2006      % Change
                                         -------       -------      --------
    Revenues                         $ 3,391,712   $ 1,390,734          143%
    Cost of Sales                    $ 1,982,176   $ 1,537,190           29%
    Gross Profit (loss)              $ 1,409,536   $  (146,456)        1062%
    EBITDA (loss)(*)                 $(2,377,627)  $   (87,617)
    Net loss                         $(2,837,152)  $(2,153,468)         (32%)
    EPS (loss) - Basic & Diluted     $     (0.05)  $     (0.04)         (25%)

    Year ended March 31, 2007, as compared to year ended March 31, 2006, were:

                                            2007          2006
                                            ----          ----
    Revenues                         $ 9,551,954   $ 6,791,094           41%
    Cost of Sales                    $ 6,269,527   $ 4,867,001           29%
    Gross Profit                     $ 3,282,427   $ 1,924,093           71%
    EBITDA (loss)(*)                 $(2,660,485)  $   374,294
    Net loss                         $(4,199,036)  $(2,849,869)         (47%)
    EPS (loss) - Basic & Diluted     $     (0.07)  $     (0.05)         (40%)

    (*) EBITDA is a non-GAAP measure and represents earnings (loss) before
        interest, tax, stock-based compensation, depreciation, and
        amortization. All figures are in Canadian dollars and in accordance
        with Canadian Generally Accepted Accounting Principles (GAAP) except
        where otherwise noted.
    


    Revenue for the fourth quarter rose 143% to $3.4 million, compared with
$1.4 million in the prior year, and the net loss was ($0.05) per share
compared to ($0.04) per share a year earlier, as a result of increased
revenues for both V-chip licensing and Think Broadband ("TBB") product sales
offset by the previously disclosed $2.5 million legal fee accrual in fiscal Q4
2007 that was required to be made in accordance with the terms of one of the
company's license agreements. For the year ended March 31, 2007, total revenue
was $9.6 million, compared to $6.8 million in the prior year, an increase of
41%.
    Tri-Vision Electronics Inc. saw royalty revenues increase to $1.3 million
in the fourth quarter from $1.0 million in the third quarter of fiscal 2007
and nil from the prior year. TBB's revenues improved to $2.1 million in the
fourth quarter, up by $0.7 million over the previous year, fuelled by
increases in cable equipment sales.
    Fourth quarter gross profit grew to $1.4 million compared to a loss in
the previous year. This represents a gross profit margin of 42% compared to
41% in the third quarter of fiscal 2007 and negative 10% in the comparable
quarter last year. Gross profit for the fiscal year ended March 31, 2007 was
up at $3.3 million, representing a gross profit margin of 34% as compared to
$1.9 million, or gross profit margin of 28% for the previous fiscal year.
    Selling, general & administrative expenses were $1.5 million (excluding a
legal expense accrual of $2.5 million related to a certain license agreement)
in the fourth quarter compared to $1.4 million in the year prior. Research &
Development expenses were lower quarter over quarter at $0.2 million compared
to $0.7 million excluding a $1.1 million investment tax credit. For the fiscal
year ended March 31, 2007, selling, general & administrative expenses were
$4.2 million (excluding a legal expense accrual of $2.5 million related to a
certain license agreement) compared with $3.5 million for fiscal 2006.
Research & development expenses were down at $0.7 million for the year
compared to $1.2 million (excluding a $1.1 million investment tax credit) in
the previous year. Throughout fiscal 2007, expanding sales activities resulted
in increased travel and legal expenses beyond the levels incurred in fiscal
2006 as Tri-Vision's sales force and licensing team continued pursuing new
contracts around the world. The fourth quarter saw six new V-chip licenses
announced for the Canadian and/or the United States market. Subsequent to the
year end six additional licenses have been added to bring the total to
95 licensees, 49 for the Canadian Patent and 46 for the US Patent. Tri-Vision
continues to pursue licensing deals with all remaining major manufacturers
that each hold significant market share which, when finalized, would add
substantially to Tri-Vision's US market position. It is important to note that
regardless of when such licensing contracts are signed, Tri-Vision will be
entitled to collect royalties on sales that date back to the FCC mandated
deadlines.
    A net loss of $2.8 million was recorded for the fourth quarter (including
a $2.5 million legal expense accrual) compared to a net loss of $2.2 million
in the same period of the previous fiscal year. For the year ended March 31,
2007, there was a net loss of $4.2 million compared to a net loss of
$2.8 million for the previous fiscal year. This represents a loss per share
for the fourth quarter and fiscal year ended March 31, 2007, of ($0.05) and
($0.07) basic and fully diluted, respectively, compared to ($0.04) and
($0.05), respectively, for the same periods fiscal 2006.

    
    Fourth Quarter Operational Highlights
    -------------------------------------
    -   March 1, 2007 was FCC's deadline requiring all television receivers
        in the United States, with or without associated display to include a
        digital tuner. A digital tuner is required to provide "open" V-Chip
        capacity that is the basis of Tri-Vision's U.S. Licensing program
    -   Licensing activities continued resulting in six licenses announced
        during the fourth quarter, and six more announced since March 31,
        2007. Eight of those announced were for the more lucrative U.S.
        market.
    -   Tri-Vision closed a $4 million bought deal equity financing with
        Wellington West Capital Markets.
    -   Late in the fourth quarter Tri-Vision announced the signing of a
        Letter of Intent to merge with Wi-LAN Inc., a move which Tri-Vision's
        Board and management believe would strengthen its bargaining position
        in negotiations with licensees and protect its patents and
        proprietary technologies.

    Subsequent to Fiscal Year End
    -----------------------------
    -   Continued V-chip licensing with 6 new licensees for the Canadian
        and/or U.S. Patents announced, including Nexgen, Falcon, TPV and
        Microtek for the U.S. market.
    -   Tri-Vision signed a definitive agreement to merge with Wi-LAN Inc.,
        subject to shareholder approval. Once completed, the merger will
        create a Canadian pure play intellectual property giant building upon
        Wi-LAN's already strong intellectual property portfolio in the
        wireless and telecom sectors.
    -   Tri-Vision paid approximately $2.5 million for legal expenses
        relating to a certain license agreement.
    

    Outlook
    -------
    Looking forward, Mr. Siddiqui stated: "The future for Tri-Vision is up to
the shareholders who will vote on the proposed merger with Wi-LAN Inc. on
Thursday, June 28th. We believe the proposed transaction with Wi-LAN is fair
and provides for the strongest platform on which to build for the future of
V-chip technology."

    About Tri-Vision

    Tri-Vision International Ltd/Ltée is a public company founded in 1986.
Shares of the Company trade on Canada's Toronto Stock Exchange (TSX) under the
symbol TVL. Tri-Vision operates two wholly-owned subsidiaries: Tri-Vision
Electronics Inc. and Think Broadband Solutions Inc.
    To receive Company news releases, please email ana@chfir.com and mention
"TVL news" on the subject line.
    To find out more about Tri-Vision International Ltd. (TSX: TVL), visit
our website at www.tri-vision.ca.

    This news release contains forward-looking statements, as defined in
applicable legislation. The words "expect", "on track", "will" and other
expressions which are predictions of or indicate future events, trends or
prospects and which do not relate to historical matters identify
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Tri-Vision to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements.
    Although Tri-Vision believes it has a reasonable basis for making these
forward-looking statements, readers are cautioned not to place undue reliance
on such forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and uncertainties,
both general and specific, which contribute to the possibility that the
predictions, forecasts and other forward-looking statements will not occur.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: general
economic conditions; effects of competition and product pricing pressures;
government regulation; ability to adapt to industry changes; intellectual
property risks; risks inherent in international operations; and other risks
and factors described from time to time in filings with Canadian securities
regulatory authorities.
    Tri-Vision does not undertake to update any forward-looking statements,
whether as a result of new information, future events or otherwise, or to
publicly update or revise the above list of factors affecting this
information. See the "Forward-Looking Statements" section of the Management
Discussion and Analysis.


    
                     TRI-VISION INTERNATIONAL LTD./LTEE

                         CONSOLIDATED BALANCE SHEETS

                                                         As at         As at
    ASSETS                                            March 31      March 31
                                                          2007          2006
                                                             $             $
    -------------------------------------------------------------------------

    CURRENT
      Cash and cash equivalents                        807,238       483,900
      Restricted cash equivalents                    2,815,520             -
      Interest bearing deposits                      4,506,473     3,350,000
      Accounts receivables                           2,896,950     1,950,541
      Inventories                                    1,886,441       951,250
      Prepaid expenses and deferred costs              342,123       112,377
      Taxes recoverable                                185,459        61,918
    -------------------------------------------------------------------------
                                                    13,440,204     6,909,986

    Restricted term deposits                                 -     2,296,983
    Deferred development costs                       1,061,796     1,235,807
    Capital assets, net                              2,253,462     2,308,249
    V-Chip license and Patents, net                  7,439,683     8,369,337
    -------------------------------------------------------------------------

                                                    24,195,145    21,120,362
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT
      Accounts payable and accrued liabilities       3,998,558       669,339
      Customers' deposits and deferred revenue         519,807        40,523
      Government grants payable - current portion      120,000       120,000
      Mortgage payable - current portion               142,497       134,580
    -------------------------------------------------------------------------
                                                     4,780,862       964,442
    -------------------------------------------------------------------------

    Government grants payable                           97,076       187,688
    Mortgage payable                                   457,741       599,244
    -------------------------------------------------------------------------
                                                       554,817       786,932
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY

    Capital stock                                   37,197,040    34,459,736
    Contributed surplus                              1,490,253       538,043
    Deficit                                        (19,827,827)  (15,628,791)
    -------------------------------------------------------------------------
                                                    18,859,466    19,368,988
    -------------------------------------------------------------------------

                                                    24,195,145    21,120,362
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                     TRI-VISION INTERNATIONAL LTD./LTEE

                 CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT

                                For three months                    For year
                                  ended March 31              ended March 31
                              2007          2006          2007          2006
                                 $             $             $             $
    -------------------------------------------------------------------------

    Revenue              3,391,712     1,390,734     9,551,954     6,791,094
    Cost of sales        1,982,176     1,537,190     6,269,527     4,867,001
    -------------------------------------------------------------------------

    Gross profit (loss)  1,409,536      (146,456)    3,282,427     1,924,093
    -------------------------------------------------------------------------

    Selling, general
     and administrative
     expenses            1,547,521     1,448,377     4,266,835     3,495,759
    Legal expense
     accrual             2,457,000             -     2,457,000             -
    Research and
     development           202,962       656,738       668,774     1,233,439
    Investment
     tax credit                  -    (1,142,544)            -    (1,142,544)
    -------------------------------------------------------------------------
                         4,207,483       962,571     7,392,609     3,586,654
    -------------------------------------------------------------------------

    Loss before interest
     income (expense),
     foreign exchange
     and income taxes   (2,797,947)   (1,109,027)   (4,110,182)   (1,662,561)
    Interest income         75,376        57,965       232,996       188,589
    Interest expense       (11,563)      (15,358)      (61,986)      (53,444)
    Foreign exchange
     gain (loss)             4,674        31,319       (28,109)      (68,927)
    -------------------------------------------------------------------------
    Loss before
     income taxes       (2,729,460)   (1,035,101)   (3,967,281)   (1,596,343)
    Provision for
     current income
     taxes                 107,692     1,118,367       231,755     1,253,526
    -------------------------------------------------------------------------
    Net loss            (2,837,152)   (2,153,468)   (4,199,036)   (2,849,869)
    Deficit, beginning
     of period         (16,990,675)  (13,475,323)  (15,628,791)  (12,778,922)
    -------------------------------------------------------------------------
    Deficit, end of
     the period        (19,827,827)  (15,628,791)  (19,827,827)  (15,628,791)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net loss per share -
     basic and diluted       (0.05)        (0.04)        (0.07)        (0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Number of shares
     (000's) - basic
     and diluted            58,745        56,030        56,703        56,030
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                     TRI-VISION INTERNATIONAL LTD./LTEE

                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                For three months                    For year
                                  ended March 31              ended March 31
                              2007          2006          2007          2006
                                 $             $             $             $
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES:
      Net loss          (2,837,152)   (2,153,468)   (4,199,036)   (2,849,869)
      Add charges to
       operations not
        involving cash
        Compensation
         expense for
        Compensation
         expense for
         shares, options
         and warrants      108,261       234,083       256,756       283,583
        Amortization of
         capital assets     31,460        31,137       117,385       109,748
        Amortization of
         deferred
         development costs  43,511       492,457       174,011       782,797
        Amortization of
         V-Chip license
         and patent        232,414       232,414       929,654       929,654
        Foreign exchange
         gain (loss) on
         cash, cash
         equivalents and
         term deposits     (73,714)       11,581       (17,825)       37,968
    -------------------------------------------------------------------------
                        (2,495,220)   (1,151,796)   (2,739,055)     (706,119)

      Changes in non-cash
       working capital
       balance related
       to operations
        Accounts
         receivable       (308,219)       48,447      (946,409)       87,093
        Inventories       (464,821)      310,097      (935,191)      118,270
        Prepaid expenses
         and deferred
         costs             (18,328)      (12,733)     (229,746)      (12,556)
        Accounts payable
         and accrued
         liabilities     2,525,052       287,215     3,329,219        77,709
        Taxes payable
         (recoverable)    (103,590)      (52,606)     (123,541)      155,391
        Customers'
         deposits and
         deferred revenue   43,769       (43,516)      479,284      (161,185)
    -------------------------------------------------------------------------
    Cash flow used in
     operating activities (821,357)     (614,892)   (1,165,439)     (441,397)
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Interest bearing
       deposits         (3,150,001)     (350,000)   (1,156,473)      650,000
      Restricted term
       deposits             26,336        (9,833)     (518,537)     (275,897)
      Additions to
       capital assets      (46,401)      (50,046)      (62,598)     (167,846)
    -------------------------------------------------------------------------
    Cash flow provided
     by (used in)
     investing
     activities         (3,170,066)     (409,879)   (1,737,608)      206,257
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
      Repayment of
       mortgage payable    (34,301)      (33,657)     (133,586)     (375,716)
      Net proceeds from
       issuance of
       common shares     3,432,758             -     3,432,758             -
      Repayment of
       government grant    (32,990)      (14,816)      (90,612)      (85,423)
    -------------------------------------------------------------------------
    Cash flow provided
     by (used in)
     financing
     activities          3,365,467       (48,473)    3,208,560      (461,139)
    -------------------------------------------------------------------------
    Foreign exchange
     gain (loss) on cash,
     cash equivalents
     and term deposits      73,714       (11,581)       17,825       (37,968)
    -------------------------------------------------------------------------
    Net increase
     (decrease) in cash
     and cash equivalents
     during the period    (552,242)   (1,084,825)      323,338      (734,247)

    Cash and cash
     equivalents,
     beginning of
     period              1,359,480     1,568,725       483,900     1,218,147
    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end
     of period             807,238       483,900       807,238       483,900
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00004162E




For further information:

For further information: CHF Investor Relations, Jeanny So, Broker
Relations Specialist, Tel: (416) 868-1079 ext. 225, Email: jeanny@chfir.com

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