OSI Geospatial Inc Reports 2009 Third Quarter Results
For the third quarter of 2009, OSI reported consolidated revenue of
The Company reported a net loss of
As of
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
For further comment, please join our Conference Call scheduled for
Conference Call
OSI Geospatial will present the results of the 2009 third quarter at
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
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 $ -
---------------------------------------------------
---------------------------------------------------
For further information: Jane Hayward, Investor Relations, Toll Free 1-888-880-9797, [email protected]
Share this article