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MITEC TELECOM REPORTS FIRST QUARTER, FISCAL 2011 RESULTS

^{Published on 2010-09-29 13:45:10 - Market Wire}
 

 MITEC TELECOM INC. INTERIM CONSOLIDATED BALANCE SHEETS (In thousands of Canadian dollars) As at As at July 31, 2010 April 30, 2010 ------------------------------------------------------------------------- $ $ Unaudited Audited ASSETS Current Cash 641 1,886 Short-term investments 181 181 Trade receivables 5,803 5,732 Other receivables 63 288 Income tax recoverable 132 380 Inventories 5,670 5,447 Prepaid expenses and other assets 455 493 ------------------------------------------------------------------------- Total current assets 12,945 14,407 Property, plant and equipment 4,553 4,510 Intangible assets 1,676 1,762 Investments 25 25 ------------------------------------------------------------------------- 19,199 20,704 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Credit facility 100 733 Accounts payable and accrued liabilities 6,349 6,061 ------------------------------------------------------------------------- Total current liabilities 6,449 6,794 Long-term debt 1,268 1,157 ------------------------------------------------------------------------- Total liabilities 7,717 7,951 ------------------------------------------------------------------------- Shareholders' equity Common shares 132,142 132,142 Warrants 1,152 1,152 Equity component of convertible debentures 778 768 Contributed surplus 10,835 10,802 Deficit (132,769) (131,427) Accumulated other comprehensive loss (656) (684) ------------------------------------------------------------------------- Total shareholders' equity 11,482 12,753 ------------------------------------------------------------------------- 19,199 20,704 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MITEC TELECOM INC. INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (In thousands of Canadian dollars, except per share data and number of shares) Unaudited For the three months ended July 31, 2010 2009 ------------------------------------------------------------------------- $ $ Sales 5,771 6,707 Cost of sales 4,962 5,672 ------------------------------------------------------------------------- Gross profit 809 1,035 ------------------------------------------------------------------------- Expenses Research and development 714 1,068 Selling and administrative 1,351 1,416 Financial expenses 188 154 Foreign exchange (gain) loss (134) 411 Gain on disposal and impairment of property, plan and equipment (1) 25 Stock-based compensation 33 59 ------------------------------------------------------------------------- 2,151 3,143 ------------------------------------------------------------------------- Loss before income taxes (1,342) (2,108) Income tax recovery - (39) ------------------------------------------------------------------------- Net loss for the period (1,342) (2,069) ------------------------------------------------------------------------- Net change in the unrealized gain (loss) on translating financial statements of self-sustaining foreign operations 28 (344) ------------------------------------------------------------------------- Comprehensive loss for the period (1,314) (2,413) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted loss per outstanding common share (0.01) (0.01) ------------------------------------------------------------------------- Weighted average number of outstanding common shares 220,666,756 220,666,756 ------------------------------------------------------------------------- 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.(000) $ No.(000) $ $ Balance, April 30, 2009 220,666 132,142 37,829 1,925 14 Issued upon conversion of convertible debentures - - - - (7) Stock-based compensation - - - - - Other comprehensive loss for the period - - - - - Net loss for the period - - - - - ------------------------------------------------------------------------- Balance, July 31, 2009 220,666 132,142 37,829 1,925 7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2010 220,666 132,142 23,603 1,152 768 Issued under a convertible debenture financing - - - - 10 Stock-based compensation - - - - - Other comprehensive gain for the period - - - - - Net loss for the period - - - - - ------------------------------------------------------------------------- Balance, July 31, 2010 220,666 132,142 23,603 1,152 778 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Share- Contributed Deficit hensive holders' surplus (A) loss (A) equity ------------------------------------------------------------------------- $ $ $ $ Balance, April 30, 2009 9,836 (119,980) (280) 23,657 Issued upon conversion of convertible debentures - - - (7) Stock-based compensation 59 - - 59 Other comprehensive loss for the period - - (344) (344) Net loss for the period - (2,069) - (2,069) ------------------------------------------------------------------------- Balance, July 31, 2009 9,895 (122,049) (624) 21,296 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2010 10,802 (131,427) (684) 12,753 Issued under a convertible debenture financing - - - 10 Stock-based compensation 33 - - 33 Other comprehensive gain for the period - - 28 28 Net loss for the period - (1,342) - (1,342) ------------------------------------------------------------------------- Balance, July 31, 2010 10,835 (132,769) (656) 11,482 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (A): The total of deficit and accumulated other comprehensive loss is $133,425 (2009 - $122,673). Accumulated other comprehensive loss is comprised only of the unrealized gains and losses on translation of the financial statements of self-sustaining foreign operations. MITEC TELECOM INC. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of Canadian dollars) Unaudited For the three months ended July 31, 2010 2009 ------------------------------------------------------------------------- $ $ OPERATING ACTIVITIES Net loss for the period (1,342) (2,069) Items not affecting cash Amortization 278 468 Gain on disposal and impairment of property, plant and equipment (1) 25 Stock-based compensation 33 59 Accretion expense 121 111 Income tax recovery - (39) ------------------------------------------------------------------------- (911) (1,445) Changes in non-cash working capital balances related to operating activities 579 677 ------------------------------------------------------------------------- Cash flows used in operating activities (332) (768) ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (304) (364) Proceeds on disposal of property, plant and equipment 37 Additions to intangible assets (8) Purchase of short-term investments (181) - Sale of short-term investments 181 - ------------------------------------------------------------------------- Cash flows used in investing activities (275) (364) ------------------------------------------------------------------------- FINANCING ACTIVITIES Repayment of credit facility (633) - ------------------------------------------------------------------------- Cash flows used by financing activities (633) - Loss on foreign cash held (5) (9) ------------------------------------------------------------------------- Net decrease in cash for the period (1,245) (1,141) Cash, beginning of the period 1,886 4,485 ------------------------------------------------------------------------- Cash, end of the period 641 3,344 ------------------------------------------------------------------------- -------------------------------------------------------------------------