N@N

RDM Corporation Reports Third Quarter Financial Results

^{Published on 2010-07-30 04:16:07 - Market Wire}
 

 - Total revenues were $4.8 million in the third quarter of fiscal 2010, compared to $5.9 million in the third quarter of 2009. - Payment Processing Services segment revenues, which are recurring in nature, were $2.3 million in Q3 2010, compared to $2.5 million a year earlier. - Transaction volumes for RDM's Image & Transaction Management System (ITMS(R)) averaged 3.6 million items per week during the third quarter, compared to 3.8 million items per week a year earlier, and 3.6 million items per week during Q2 2010. - ITMS end user locations increased from 18,500 to 18,750 during the third quarter. - RDM added two additional bank distributors and five new independent sales organizations (ISOs) during the quarter. - The Company shipped 4,200 proprietary scanners in the third quarter, compared to 5,250 a year earlier. - Gross profit was $1.8 million or 37% of revenues, compared to $2.5 million or 42% of revenues in the third quarter of 2009. - Net loss was $1.0 million or $0.05 per share in Q3 2010, compared to net earnings of $0.2 million or $0.01 per share in Q3 2009. Foreign exchange was a loss of $365,000 in Q3 2010 versus a gain of $692,000 in Q3 2009. The change is due to the forward contracts. - Cash and equivalents were $15.2 million at June 30, 2010, compared to $16.1 million at March 31, 2010. 

 - re-deployed its resources within the sales organization and re-directed them to our most profitable growth market segments and; - integrated and expanded its product features into its "Connect" scanner to be market-ready this September. 

 (In thousands Payment Digital Electronic of Canadian Processing Imaging Payment Quality dollars) Services Products Solutions Assurance Total -------------------------------------------------------- Revenue $2,315 $1,960 $126 $350 $4,751 Gross profit $892 $534 $64 $262 $1,752 Gross profit percentage 39% 27% 51% 75% 37% 

 (In thousands Payment Digital Electronic of Canadian Processing Imaging Payment Quality dollars) Services Products Solutions Assurance Total -------------------------------------------------------- Revenue $2,491 $2,948 $180 $322 $5,941 Gross profit $1,173 $1,032 $66 $235 $2,506 Gross profit percentage 47% 35% 37% 73% 42% 

 RDM CORPORATION Consolidated Balance Sheets (Amounts In Canadian Dollars, In Thousands) ------------------------------------------------------------------------- June 30, September 30, 2010 2009 Unaudited Audited ------------------------------------------------------------------------- Assets: Current assets: Cash and cash equivalents $ 15,196 $ 15,718 Accounts receivable 3,735 4,123 Inventories 3,511 3,409 Investment tax credit receivable 1,341 1,770 Other 774 2,039 ------------------------------------------------------------------------- Total current assets 24,557 27,059 Furniture and equipment 3,430 3,275 Intangible assets 382 288 ------------------------------------------------------------------------- Total assets $ 28,369 $ 30,622 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and shareholders' equity: Current liabilities: Accounts payable and accrued liabilities $ 3,146 $ 3,062 Deferred revenue 456 498 ------------------------------------------------------------------------- Total current liabilities 3,602 3,560 ------------------------------------------------------------------------- Future income tax liability 201 201 Shareholders' equity: Share capital 27,592 27,639 Contributed surplus 2,084 1,886 Retained earnings (deficit) (5,110) (2,664) ------------------------------------------------------------------------- Total shareholders' equity 24,566 26,861 ------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 28,369 $ 30,622 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RDM CORPORATION Consolidated Statements of Operations (Amounts in Canadian Dollars, In Thousands, Except Per Share Amounts) Three months ended Nine months ended June June 2010 2009 2010 2009 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------------------------------------------------------------------- Revenue $ 4,751 $ 5,941 $ 15,701 $ 18,810 Cost of revenue 2,999 3,435 9,780 10,776 ------------------------------------------------------------------------- Gross Profit 1,752 2,506 5,921 8,034 Operating expenses (income): Sales and marketing 941 1,233 2,938 3,879 Research and development 976 1,130 3,366 3,295 General and administration 415 533 1,425 1,449 Depreciation and amortization 51 64 147 186 Stock-based compensation 65 75 198 332 Foreign exchange loss (gain) 365 (692) (96) 1,319 Interest Income (12) (12) (30) (117) Restructuring - - 419 - ------------------------------------------------------------------------- 2,801 2,331 8,367 10,343 ------------------------------------------------------------------------- Earnings (loss) before income taxes (1,049) 175 (2,446) (2,309) Income Tax expense - - - - ------------------------------------------------------------------------- Net earnings (loss) and comprehensive earnings (loss) (1,049) 175 (2,446) (2,309) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (loss) per share - basic and diluted $ (.05) $ .01 $ (.12) $ ( .11) ------------------------------------------------------------------------- ------------------------------------------------------------------------- RDM CORPORATION Statement of Shareholder's Equity (Amounts in Canadian Dollars, In Thousands) ------------------------------------------------------------------------- Retained Share Contributed earnings Capital Surplus (deficit) Total ------------------------------------------------------------------------- Balance as at September 30, 2008 $ 28,338 $ 1,162 $ (641) $ 28,859 Net loss and comprehensive loss - - (6,309) (2,309) Repurchase of share capital (358) - - (358) Stock-based compensation - 332 - 332 ------------------------------------------------------------------------- Balance as at June 30, 2009 $ 27,980 $ 1,494 $ (2,950) $ 26,524 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance as at September 30, 2009 $ 27,639 $ 1,886 $ (2,664) $ 26,861 Net loss and comprehensive loss - - (2,446) (2,446) Repurchase of share capital (47) - - (47) Stock-based compensation - 198 - 198 ------------------------------------------------------------------------- Balance as at June 30, 2010 $ 27,592 $ 2,084 $ (5,110) $ 24,566 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RDM CORPORATION Consolidated Statements of Cash Flows (Amounts in Canadian Dollars, In Thousands) Three months ended Nine months ended June June 2010 2009 2010 2009 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net earnings (loss) Items not involving cash: $ (1,049) $ 175 $ (2,446) $ (2,309) Amortization of furniture and equipment 319 262 857 711 Amortization of intangible assets 10 13 27 36 Stock-based compensation 65 75 198 332 Future income taxes - 10 - (64) Change in non-cash operating working capital 77 (238) 1,435 2,159 ------------------------------------------------------------------------- Cash provided by (used in) operations (578) 297 71 865 Investing: Repurchase of share capital (4) (25) (47) (358) Purchase of furniture and equipment (228) (181) (425) (913) Additions to intangible assets (41) (16) (121) (76) ------------------------------------------------------------------------- Cash used in investing activities (273) (222) (593) (1,347) Increase (decrease) in cash and cash equivalents (851) 75 (522) (482) Cash and cash equivalents, beginning of period 16,047 16,864 15,718 17,421 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 15,196 $ 16,939 $ 15,196 $ 16,939 ------------------------------------------------------------------------- Supplementary cash flow information: Noncash furniture and equipment additions included in accounts payable $ 587 $ - $ 587 $ - ------------------------------------------------------------------------- -------------------------------------------------------------------------