N@N

Mitec Telecom announces year-end and fourth quarter results for fiscal 2009

^{Published on 2009-07-29 13:39:14, Last Modified on 2009-07-29 13:39:23 - Market Wire}
 

 MONTREAL, July 29 /CNW Telbec/ - Mitec Telecom (TSX: MTM) today announced its year-end and fourth quarter results for the 2009 fiscal year, which ended April 30, 2009. Annual sales for fiscal 2009 were $40.3 million, an increase of 12 per cent over fiscal 2008 sales of $36.2 million. In addition, the Corporation's net loss for the year was reduced to $4.6 million, or $0.02 per share compared with a net loss of $6.4 million, or $0.03 per share in th previous year. These results also include a one-time, non-cash, after-tax accounting charge of $1.1 million for goodwill associated with the prior acquisition of the Corporation's U.S. operations. Without this adjustment, Mitec's net loss for the year would have been reduced to $3.5 million. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for fiscal 2009 were negative $666,000. This marks a significant improvement over 2008 EBITDA which was negative $1,933,000. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for fiscal 2009 were negative $666,000. This marks a significant improvement over 2008 EBITDA which was negative $1,933,000. "Fiscal 2009 represents a third consecutive year of consistent and substantial improvement for Mitec," says Dan Piergentili, Mitec President and CEO. "This is progress in the face of a brutal recession which we addressed, in part, through effective cost containment that helped us achieve sustainable gross margins." "We have begun to see a gradual improvement in economic conditions over the last few months, as worldwide demand for mobile data access continues to necessitate cellular network upgrades. There is also a strong commitment throughout the telecom industry to expand and upgrade wireless capacity and Mitec is well-positioned to benefit from it." Mitec also committed over $4.3 million in fiscal 2009 to research and development activities, including the Corporation's Keragis product line. Cash flow generated from operating activities improved by 146 per cent from negative $1.9 million in fiscal 2008 to positive $0.9 million in fiscal 2009. Fourth Quarter Results Sales for the fourth quarter of fiscal 2009 were $6.9 million. This is a decrease of 13 percent compared with sales during the previous quarter, and a reduction of 36 per cent in comparison with an unusually strong fourth quarter sales in 2008. The net loss for the quarter was $3.1 million, or $0.01 per share compared with a net loss of $1.8 million, or $0.01 in the fourth quarter of 2008. Results for the quarter also include the one-time, non-cash, after-tax accounting charge of $1.1 million referred to in the summary of yearend results above. Without this adjustment, the fourth quarter net loss would have been $2.0 million, compared with a net loss of $1.8 million in the fourth quarter of the previous year. EBITDA for the quarter were negative $1.4 million compared to negative $507,000 during the fourth quarter of fiscal 2008. About Mitec Telecom Mitec Telecom 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. The Company 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, the Company also operates facilities in California and China. Mitec Telecom Inc. 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 the Corporation's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Corporation's public filings with the appropriate securities regulatory authorities. MITEC TELECOM INC. CONSOLIDATED BALANCE SHEETS (In thousands of Canadian dollars) Audited As at As at April 30, April 30, 2009 2008 $ $ ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 4,485 4,784 Short-term investments, consisting of money market funds 181 77 Trade receivables 5,592 10,036 Other receivables 126 630 Income tax recoverable 323 839 Inventories 8,088 8,759 Prepaid expenses and other 629 580 ------------------------------------------------------------------------- Total current assets 19,424 25,705 Property, plant and equipment 5,493 6,084 Intangible assets 3,263 4,310 Goodwill 1,991 3,598 Investments 25 25 Deferred charges - 321 Future income tax 125 - ------------------------------------------------------------------------- 30,321 40,043 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 5,449 11,373 Current portion of long-term debt 1,215 382 ------------------------------------------------------------------------- Total current liabilities 6,664 11,755 Long-term debt - 742 Future Income tax - 515 ------------------------------------------------------------------------- 6,664 13,012 ------------------------------------------------------------------------- Shareholders' equity Common shares 132,142 132,097 Warrants 1,925 1,931 Equity component of convertible debentures 14 46 Contributed surplus 9,836 9,223 Deficit (119,980) (115,372) Accumulated other comprehensive loss (280) (894) ------------------------------------------------------------------------- Total shareholders' equity 23,657 27,031 ------------------------------------------------------------------------- 30,321 40,043 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MITEC TELECOM INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands of Canadian dollars, except per share data and number of shares) Unaudited Audited For the three months For the twelve months ended April 30, ended April 30, 2009 2008 2009 2008 $ $ $ $ ------------------------------------------------------------------------- Sales 6,927 10,766 40,348 36,176 Cost of sales 5,844 8,367 31,836 28,058 ------------------------------------------------------------------------- Gross profit 1,083 2,399 8,512 8,118 ------------------------------------------------------------------------- Expenses Research and development 1,122 1,300 4,310 4,477 Selling and administrative 1,891 1,577 6,569 6,229 Amortization of intangible assets 211 222 1,000 1,145 Financial expenses 178 110 853 518 Foreign exchange (470) 147 (1,706) 787 Impairment of property, plant and equipment 80 104 470 104 Impairment of intangible assets 50 40 50 40 Impairment of goodwill 1,607 - 1,607 - Impairment of investments - 450 - 725 Stock-based compensation 45 325 607 611 ------------------------------------------------------------------------- 4,714 4,247 13,760 14,636 ------------------------------------------------------------------------- Loss before income tax (3,631) (1,848) (5,248) (6,518) Income tax recovery (523) (97) (640) (97) ------------------------------------------------------------------------- Net loss for the period (3,108) (1,751) (4,608) (6,421) Net change in the unrealized gain (loss) on translating financial statements of self- sustaining operations (575) (125) 614 23 ------------------------------------------------------------------------- Comprehensive loss for the period (3,683) (1,876) (3,994) (6,398) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted loss per common share (0.01) (0.01) (0.02) (0.03) ------------------------------------------------------------------------- Weighted average number of outstanding common shares 220,666,756 217,037,556 220,658,990 197,634,243 ------------------------------------------------------------------------- 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. (000s) $ No. (000s) $ $ ------------------------------------------------------------------------- Balance, April 30, 2007 174,502 125,631 27,915 1,311 - Issued for business acquisition 32,841 4,883 - - - Issued under a convertible debenture financing - - 13,888 753 70 Issued upon conversion of convertible debentures 8,832 999 - - (24) Stock options exercised 350 72 - - - Warrants exercised 3,787 512 (3,787) (133) - Stock-based compensation - - - - - Other comprehensive loss for the year - - - - - Net loss for the year - - - - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2008 220,312 132,097 38,016 1,931 46 Issued upon conversion of convertible debentures 354 45 - - (32) Expired warrants - - (187) (6) - Stock-based compensation - - - - - Other compre- hensive profit for the year - - - - - Net loss for the year - - - - - ------------------------------------------------------------------------- Balance, April 30, 2009 220,666 132,142 37,829 1,925 14 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Share- Contributed hensive holders surplus Deficit loss equity $ $ $ $ ------------------------------------------------------------------------- Balance, April 30, 2007 8,645 (108,951) (917) 25,719 Issued for business acquisition - - - 4,883 Issued under a convertible debenture financing - - - 823 Issued upon conversion of convertible debentures - - - 975 Stock options exercised (33) - - 39 Warrants exercised - - - 379 Stock-based compensatio 611 - - 611 Other comprehensi loss for th year - - 23 23 Net loss for the year - (6,421) - (6,421) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Balance, April 30, 2008 9,223 (115,372) (894) 27,031 Issued upon conversion of convertible debentures - - - 13 Expired warrants 6 - - - Stock-based compensatio 607 - - 607 Other compre hensive profit for the year - - 614 614 Net loss for the year - (4,608) - (6,408) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2009 9,836 (119,980) (280) 23,657 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MITEC TELECOM INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of Canadian dollars) Unaudited Audited For the three months For the twelve months ended April 30, ended April 30, 2009 2008 2009 2008 $ $ $ $ ------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss for the period (3,108) (1,751) (4,608) (6,421) Items not affecting cash Amortization of property, plant and equipment, intangible assets and deferred charges 478 734 2,327 3,276 Loss on disposal and impairment of property, plant and equipment 80 205 470 211 Impairment of intangibles assets 50 40 50 40 Impairment of goodwill 1,607 - 1,607 - Impairment of investments - 450 - 725 Income tax recovery (523) (97) (640) (97) Stock-based compensation 45 325 607 611 Accretion expense 104 14 636 325 ------------------------------------------------------------------------- (1,267) (80) 449 (1,330) Changes in non-cash working capital balances related to continuing operations 2,246 14 435 (571) ------------------------------------------------------------------------- Cash flows from operating activities 979 (66) 884 (1,901) ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (437) (442) (786) (619) Additions to intangible assets (3) (56) (3) (64) Proceeds on disposal of property, plant and equipment 2 - 15 48 Business acquisition, net of cash acquired of $14 - - - (1,231) Purchase of short-term investment (337) - (516) (229) Sale of short-term investments 335 - 412 227 ------------------------------------------------------------------------- Cash flows from in investing activities (440) (498) (878) (1,868) ------------------------------------------------------------------------- FINANCING ACTIVITIES Common shares issued upon exercise of warrants - 379 - 379 Common shares upon exercised of stock options - - - 39 Convertible debentures issued - - - 2,294 Repayment of long-term debt (68) (125) (458) (500) Cash flows from financing activities (68) 254 (458) 2,212 ------------------------------------------------------------------------- Gain on foreign cash and cash equivalents held 153 7 153 55 ------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 624 (303) (299) (1,502) Cash and cash equivalents, beginning of the period 3,861 5,087 4,784 6,286 ------------------------------------------------------------------------- Cash and cash equivalents, end of the period 4,485 4,784 4,485 4,784 ------------------------------------------------------------------------- ------------------------------------------------------------------------- %SEDAR: 00002350EF 

For further information: Mr. Jeffrey Mandel, Director, Investor and Corporate Relations, [ jeffrey.mandel@mitectelecom.com ], (514) 694-9000; Source: Mitec Telecom Inc.