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OSI Geospatial Inc Reports 2009 Third Quarter Results

^{Published on 2009-10-15 13:11:39 - Market Wire}
 

 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 

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 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 $ - --------------------------------------------------- ---------------------------------------------------