MONTREAL, March 16, 2012 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), today announced its results for the third quarter and first three quarters of fiscal 2012, the three and nine month periods ending January 31, 2012 respectively. Similar to Mitec's second quarter, fiscal 2012 results, several technical accounting factors have affected these results, including accounting for Mitec's VSAT division as a discontinued activity.
Consequently, as Mitec continues to transition from its legacy operations and initiates the initial phases of its strategy to reposition itself in the wireless market, significant extraordinary activity has impacted the presentation of the third quarter and first three quarters of fiscal 2012 results as compared with previous quarterly financial reports. Details are available on Sedar (www.sedar.com).
If Mitec were to report revenues in the same manner as in fiscal 2011 and prior periods, as if Mitec's VSAT division was still "operating", total revenue for the third quarter of fiscal 2012 would be $1.6 million, as compared with $1.5 million in the third quarter of fiscal 2011 and $6.5 million for the three quarters of fiscal 2012 as compared with $11.6 million in the first three quarters of fiscal 2011. However, accounting for this division as a discontinued activity results in Mitec reporting only on its North American wireless division during the third quarter and first three quarters of fiscal 2012 as described below and is nominal under these reporting guidelines, as the company continues to reposition itself away from markets which, due to a variety of factors but mainly because of the worldwide slowdown impacting Mitec and its competition for these products, did not generate anticipated sales.
Revenue was $7,000 for the third quarter of fiscal 2012, compared to revenue of $298,000 in the third quarter of fiscal 2011. Revenue was $48,000 for the first three quarters of fiscal 2012, as compared with revenue of $1.2 million in the first three quarters of fiscal 2011, when Mitec was successful in deploying some of its wireless coverage solutions equipment in India and North America for field trial purposes.
Mitec reported a net loss of $448,000 or $nil per share for the third quarter of fiscal 2012. These results compare to a net loss of $944,000 or $nil per share in the third quarter of fiscal 2011. Mitec reported a net loss of $4.3 million or negative $.01 per share for the first three quarters of fiscal 2012. These results compare to a net loss of $3.0 million or negative $.01 per share in the first three quarters of fiscal 2011.
Earlier in the month, Mitec reported that it had concluded the sale of its VSAT assets, valued at approximately $2.8 million. As previously reported, the VSAT sale was part of Mitec's strategy to reposition the company away from products which have demonstrated that they cannot generate acceptable profit margins. Mitec continues to explore new wireless opportunities where it can exploit its expertise, credibility and infrastructure to better position itself to achieve long term sustainable profitability.
"Now that the VSAT transaction has concluded, we are focusing on other new initiatives such as our previously announced transaction with Optiway Inc. which has the potential to achieve our objectives", said Jeffrey Mandel, Mitec's President and CEO.
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. Mitec is located in Montreal, Canada. 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.
For further information:
Mitec Telecom Inc.
Mr. Jeffrey Mandel
Chairman and Director, Investor and Corporate Relations
Tel.: (514) 694-9000