Intrinsyc Reports 2012 Second Quarter Financial Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/09/12 -- Intrinsyc Software International, Inc. (TSX: ICS) ("Intrinsyc" or the "Company"), developer of intelligent connected devices, today announced its financial results for the second quarter ended June 30, 2012, reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS"). The Company's results are presented in comparison to the three months ended March 31, 2012 and the three months ended June 30, 2011, also in accordance with IFRS.
Intrinsyc achieved revenue of approximately $2.2 million in the second quarter, consistent with the previous quarter, with lower core business operating expenses, excluding administrative expenses related to strategic activities. The Company reported negative EBITDA(1) of $143,703 and a Net Loss of $73,183.
"We made significant progress in the design and development of new platform solutions and made our first delivery of "Internet of Everything" ("IEM") modules in production quantities," stated Tracy Rees, Chief Executive Officer, Intrinsyc Software International. "The delivery of these modules, wireless development kits and legacy computing modules resulted in an increase in revenue from hardware sales from $9,305 or less than 1% of total revenue in the previous quarter to $121,201 or 6% of total revenue in the second quarter."
Three Month Comparative Results
The Company reported revenue of approximately $2.2 million for three months ended June 30, 2012 as compared to approximately $2.2 million for the three months ended March 31, 2012 and approximately $2.4 million in the period ended June 30, 2011. Total revenue attributable to the Company's Software Solutions was 18% of revenues, including software licensing, maintenance/support and software-related services, as compared to 22% and 30% in the respective comparative quarters ended March 31, 2012 and June 30, 2011. Gross margin(2) was 43% in the three months ended June 30, 2012, which was higher than 39% in the three months ended March 31, 2012 but lower than the gross margin experienced of 50% in the three months ended June 30, 2011.
Total expenses (excluding other operating expenses)(3) for the three months ended June 30, 2012 were approximately $1.1 million which was an increase of 3% over the preceding three months ended March 31, 2012 but a 7% decrease over the three months ended June 30, 2011.
EBITDA for the three months ended June 30, 2012 was ($143,703) compared to ($204,060) in the previous three months ended March 31, 2012 and $53,776 for the three months ended June 30, 2011.
Six Month Comparative Results
The Company reported revenue of approximately $4.3 million for the six months ended June 30, 2012 as compared to approximately $5.0 million for the six months ended June 30, 2011. Total revenue attributable to the Company's Software Solutions decreased to 20% of revenues, including software licensing, maintenance/support and software-related services, as compared to 33% in the respective comparative period which is primarily due to the decline in the Company's navigation business. Gross margin was 41% for the six months ended June 30, 2012, a decrease from 53% for the six months ended June 30, 2011.
Total operating expenses (excluding other operating expenses) for the six months ended June 30, 2012 were approximately $2.1 million, compared to approximately $2.4 million for the six months ended June 30, 2011.
EBITDA for the six months ended June 30, 2012 was ($347,763) compared to $265,912 for the six months ended June 30, 2011.
Working capital(4) as of June 30, 2012 was approximately $11.6 million (which included cash and cash equivalents of approximately $6.5 million and short-term investments of approximately $5.1 million). This is compared to net working capital of approximately $11.9 million as of December 31, 2011 (which included cash and cash equivalents of approximately $9.4 million and short-term investments of approximately $2.7 million).
Business Highlights
Notable events, developments, and achievements during the second quarter include the following:
The Company experienced an undesired attrition of engineering personnel in recent months and this has impacted revenue from engineering services. While revenue from engineering services is expected to decline in the second half of the year, revenue from hardware, including wireless modules, development kits and system-on-modules ("SOM") is expected to increase in future quarters. These platform solutions are a crucial component to the Company's long-term revenue growth and profitability. A development kit and initial production-ready SOM will be officially launched upon completion of development, which is expected in the third quarter.
The introduction of leading edge system-on-module solutions by Intrinsyc represents a substantial offering of value for mobile and embedded device makers. By utilizing a system-on-module solution, device developers realize a fully customized electronics design, complete with custom interfaces and form factor without the effort of a ground-up electronics design. Customers can purchase an off-the-shelf SOM and combine it with an easy to develop carrier board to create a solution functionally identical to one that is fully custom-engineered. Other advantages include the ability for device developers to use off the shelf hardware with the same processing core as the finished product, enabling application development to be done earlier in the development cycle. Also, a SOM offers greater product flexibility, including the ability to swap in another computer SOM board to deal with end of life components or to upgrade to a new processor. In summary, the SOM approach reduces product development costs while decreasing time to market and technical risk.
Conference call
The Company will release its fiscal second quarter financial results on Thursday, August 9, 2012 at 4:00 p.m. Eastern Time (1:00 p.m. Pacific Time). The company will hold a conference call to discuss the financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) the same day. On the call, Tracy Rees, President and Chief Executive Officer, and George Reznik, Chief Financial Officer, will discuss the financial results announced. This conference call may be accessed, toll-free, by dialing 1-866-610-8602 approximately 10 minutes prior to the start of the call. This conference line is operator assisted and an access PIN is not required. The conference call will also be broadcast live over the Internet and available for replay on the Company's Investor Relations Conference Calls web page (). Analysts and investors are invited to participate on the call. Questions may be submitted to prior to the call.
The Audit Committee of the Company has reviewed the contents of this news release.
Non-IFRS Measures
The following and preceding discussion of financial results includes reference to Gross Margin, Total Expenses (excluding other operating expenses), EBITDA and Working Capital, which are all non-IFRS financial measures. The measure of gross margin is provided as management believes this is a good indicator in evaluating the operating performance of the Company. Total expenses excluding other operating expenses is provided as a proxy for cash expenses incurred from the operations of the business. EBITDA is defined as operating loss less other operating expenses. The measure is provided as a proxy for the cash earnings from the operations of the business as operating loss for the Company includes non-cash amortization and depreciation expense, share-based compensation and restructuring which are classified as other operating expenses. The measure of working capital is provided as management believes this is a good indicator of the operating liquidity available to the Company.
Forward-Looking Statements
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the need to develop, integrate and deploy software solutions to meet the Company's customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on the Company's customer's satisfaction; the timing of entering into significant contracts; customers' continued commitment to the deployment of the Company's solutions; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to international expansion; concentration of sales; international operations and sales; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and other factors described in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2011. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Intrinsyc Software International, Inc.
Intrinsyc is a product development company that brings to market next generation intelligent connected devices, from smartphones and tablets, to emerging categories of M2M (Machine-to-Machine) solutions. Intrinsyc is helping to lead the way to a networked society with 50 billion intelligent connected devices expected by 2020. Intrinsyc is publicly traded (TSX: ICS) and is headquartered in Vancouver, Canada, with operations in Taiwan and the United States.
(1) Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable IFRS measure. EBITDA referenced here relates to operating loss less other operating expenses. Please refer to the reconciliation of EBITDA to reported financial results attached to this press release.
(2) Non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross Margin referenced here relates to revenues less cost of sales.
(3) Non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Total Expenses excludes other operating expenses.
(4) Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable IFRS measure. Working Capital is defined as current assets less current liabilities.
Contacts:
Intrinsyc Software International, Inc.
George Reznik
Chief Financial Officer
+1-604-678-3734
(604) 801-6417 (FAX)
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 09.08.2012 - 14:00 Uhr
Sprache: Deutsch
News-ID 1141181
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
VANCOUVER, BRITISH COLUMBIA
Phone:
Kategorie:
Peripherals
Anmerkungen:
Diese Pressemitteilung wurde bisher 144 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Intrinsyc Reports 2012 Second Quarter Financial Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Intrinsyc Software International, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
