MITEC TELECOM REPORTS FIRST QUARTER, FISCAL 2011 RESULTS
MONTREAL, Sept. 29 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components, announced today its results for the first quarter of fiscal 2011, the three-month period ended July 31, 2010.
Sales were $5.8 million, which is a decrease of 14 percent from first quarter fiscal 2010 sales of $6.7 million. A net loss of $1.3 million, or $0.01 per share was also reported, an improvement of 35 percent compared with a net loss of $2.1 million or $0.01 per share in the first quarter of fiscal 2010.
EBITDA (earnings before interest, income taxes, depreciation and amortization) improved by 36 percent to negative $1.0 million compared to negative $1.6 million in the first quarter of fiscal 2010.
"The improvement in key areas such as net income and EBITDA, despite lower revenues for the quarter, demonstrates that Mitec's cost containment program is having the desired effect", commented Dan Piergentili, Mitec's President and CEO. "Although our satcom segment did not provide revenues up to our expectations, this turned out to be more of a timing issue and early in the second quarter, these sales resumed and have generated a nice backlog going forward."
"These results also provided some evidence that our long planned shift in our wireless sales strategy, launching products developed in previous quarters was successful. Wireless revenue in Q1 increased by 23 percent, as compared with our fourth quarter, fiscal 2010 revenues," said Piergentili.
Annual General Meeting Date
The Corporation's Annual General Meeting will take place on Thursday, October 28, 2010 at 11:00 a.m. EST. The meeting will be accessible by webcast. For details, please visit www.mitectelecom.com.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in China and California. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
MITEC TELECOM INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars) As at As at
July 31, 2010 April 30, 2010
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$ $
Unaudited Audited
ASSETS
Current
Cash 641 1,886
Short-term investments 181 181
Trade receivables 5,803 5,732
Other receivables 63 288
Income tax recoverable 132 380
Inventories 5,670 5,447
Prepaid expenses and other assets 455 493
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Total current assets 12,945 14,407
Property, plant and equipment 4,553 4,510
Intangible assets 1,676 1,762
Investments 25 25
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19,199 20,704
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Credit facility 100 733
Accounts payable and accrued liabilities 6,349 6,061
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Total current liabilities 6,449 6,794
Long-term debt 1,268 1,157
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Total liabilities 7,717 7,951
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Shareholders' equity
Common shares 132,142 132,142
Warrants 1,152 1,152
Equity component of convertible debentures 778 768
Contributed surplus 10,835 10,802
Deficit (132,769) (131,427)
Accumulated other comprehensive loss (656) (684)
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Total shareholders' equity 11,482 12,753
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19,199 20,704
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MITEC TELECOM INC.
INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(In thousands of Canadian dollars, except per share data and
number of shares)
Unaudited For the three months ended
July 31,
2010 2009
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$ $
Sales 5,771 6,707
Cost of sales 4,962 5,672
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Gross profit 809 1,035
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Expenses
Research and development 714 1,068
Selling and administrative 1,351 1,416
Financial expenses 188 154
Foreign exchange (gain) loss (134) 411
Gain on disposal and impairment of property,
plan and equipment (1) 25
Stock-based compensation 33 59
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2,151 3,143
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Loss before income taxes (1,342) (2,108)
Income tax recovery - (39)
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Net loss for the period (1,342) (2,069)
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Net change in the unrealized gain (loss) on
translating financial statements of
self-sustaining foreign operations 28 (344)
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Comprehensive loss for the period (1,314) (2,413)
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Basic and diluted loss per outstanding
common share (0.01) (0.01)
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Weighted average number of outstanding
common shares 220,666,756 220,666,756
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MITEC TELECOM INC.
INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands of Canadian dollars, except for number of shares)
Unaudited
Equity
component
of
convertible
Common shares Warrants debentures
-------------------------------------------------------------------------
No.(000) $ No.(000) $ $
Balance,
April 30,
2009 220,666 132,142 37,829 1,925 14
Issued upon
conversion
of
convertible
debentures - - - - (7)
Stock-based
compensation - - - - -
Other
comprehensive
loss for the
period - - - - -
Net loss for
the period - - - - -
-------------------------------------------------------------------------
Balance,
July 31,
2009 220,666 132,142 37,829 1,925 7
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Balance,
April 30,
2010 220,666 132,142 23,603 1,152 768
Issued under a
convertible
debenture
financing - - - - 10
Stock-based
compensation - - - - -
Other
comprehensive
gain for the
period - - - - -
Net loss for
the period - - - - -
-------------------------------------------------------------------------
Balance,
July 31,
2010 220,666 132,142 23,603 1,152 778
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated
other
compre- Share-
Contributed Deficit hensive holders'
surplus (A) loss (A) equity
-------------------------------------------------------------------------
$ $ $ $
Balance,
April 30,
2009 9,836 (119,980) (280) 23,657
Issued upon
conversion
of
convertible
debentures - - - (7)
Stock-based
compensation 59 - - 59
Other
comprehensive
loss for the
period - - (344) (344)
Net loss for
the period - (2,069) - (2,069)
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Balance,
July 31,
2009 9,895 (122,049) (624) 21,296
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Balance,
April 30,
2010 10,802 (131,427) (684) 12,753
Issued under a
convertible
debenture
financing - - - 10
Stock-based
compensation 33 - - 33
Other
comprehensive
gain for the
period - - 28 28
Net loss for
the period - (1,342) - (1,342)
-------------------------------------------------------------------------
Balance,
July 31,
2010 10,835 (132,769) (656) 11,482
-------------------------------------------------------------------------
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(A): The total of deficit and accumulated other comprehensive loss is
$133,425 (2009 - $122,673). Accumulated other comprehensive loss is
comprised only of the unrealized gains and losses on translation of
the financial statements of self-sustaining foreign operations.
MITEC TELECOM INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of Canadian dollars)
Unaudited For the three months ended
July 31,
2010 2009
-------------------------------------------------------------------------
$ $
OPERATING ACTIVITIES
Net loss for the period (1,342) (2,069)
Items not affecting cash
Amortization 278 468
Gain on disposal and impairment of property,
plant and equipment (1) 25
Stock-based compensation 33 59
Accretion expense 121 111
Income tax recovery - (39)
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(911) (1,445)
Changes in non-cash working capital balances
related to operating activities 579 677
-------------------------------------------------------------------------
Cash flows used in operating activities (332) (768)
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INVESTING ACTIVITIES
Additions to property, plant and equipment (304) (364)
Proceeds on disposal of property, plant and
equipment 37
Additions to intangible assets (8)
Purchase of short-term investments (181) -
Sale of short-term investments 181 -
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Cash flows used in investing activities (275) (364)
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FINANCING ACTIVITIES
Repayment of credit facility (633) -
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Cash flows used by financing activities (633) -
Loss on foreign cash held (5) (9)
-------------------------------------------------------------------------
Net decrease in cash for the period (1,245) (1,141)
Cash, beginning of the period 1,886 4,485
-------------------------------------------------------------------------
Cash, end of the period 641 3,344
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%SEDAR: 00002350E
For further information: Mr. Jeffrey Mandel, Director, Investor and Corporate Relations, Tel.: (514) 694-9000, [email protected]; Source: Mitec Telecom Inc.
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