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MITEC TELECOM REPORTS IMPROVED THIRD QUARTER 2011 RESULTS

^{Published on 2011-03-09 05:40:52 - Market Wire}
 

 MITEC TELECOM INC. INTERIM CONSOLIDATED BALANCE SHEETS (In thousands of Canadian dollars) As at As at January 31, April 30, 2011 2010 ------------------------------------------------------------------------- $ $ Unaudited Audited ASSETS Current Cash 525 1,886 Short-term investments 182 181 Trade receivables 6,361 5,732 Other receivables 159 288 Income tax recoverable 44 380 Inventories 5,725 5,447 Prepaid expenses and other assets 393 493 ------------------------------------------------------------------------- Total current assets 13,389 14,407 Property, plant and equipment 4,113 4,510 Intangible assets 1,498 1,762 Investments 25 25 ------------------------------------------------------------------------- 19,025 20,704 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Credit facility 537 733 Accounts payable and accrued liabilities 5,310 6,061 Deferred liabilities 600 - Current portion of the long-term debt 1,910 - ------------------------------------------------------------------------- Total current liabilities 8,357 6,794 Long-term debt - 1,157 ------------------------------------------------------------------------- Total liabilities 8,357 7,951 ------------------------------------------------------------------------- Shareholders' equity Common shares 132,885 132,142 Warrants - 1,152 Equity component of convertible debentures 777 768 Contributed surplus 12,036 10,802 Deficit (134,434) (131,427) Accumulated other comprehensive loss (596) (684) ------------------------------------------------------------------------- Total shareholders' equity 10,668 12,753 ------------------------------------------------------------------------- 19,025 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 For the three months ended nine months ended January 31, January 31, 2011 2010 2011 2010 ------------------------------------------------------------------------- $ $ Sales 5,983 5,161 18,778 19,066 Cost of sales 4,713 4,299 14,904 16,353 ------------------------------------------------------------------------- Gross profit 1,270 862 3,874 2,713 ------------------------------------------------------------------------- Expenses Research and development 638 1,031 2,072 2,782 Selling and administrative 1,205 1,694 4,099 4,918 Financial expenses 236 161 633 535 Foreign exchange loss 137 279 6 682 Gain on disposal and impairment of property, plant and equipment - - (1) (25) Stock-based compensation 8 41 72 149 ------------------------------------------------------------------------- 2,224 3,206 6,881 9,041 ------------------------------------------------------------------------- Loss before income taxes (954) (2,344) (3,007) (6,328) Income tax recovery - (39) - (117) ------------------------------------------------------------------------- Net loss for the period (954) (2,305) (3,007) (6,211) ------------------------------------------------------------------------- Net change in the unrealized gain (loss) on translating financial statements of self-sustaining foreign operations 30 (32) 88 (383) ------------------------------------------------------------------------- Comprehensive loss for the period (924) (2,337) (2,919) (6,594) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted loss per outstanding common share (0.00) (0.01) (0.01) (0.03) ------------------------------------------------------------------------- Weighted average number of outstanding common shares 267,010,959 220,666,756 236,114,824 220,666,756 ------------------------------------------------------------------------- MITEC TELECOM INC. INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands of Canadian dollars, except for number of shares) Unaudited Equity component of conver- tible deben- Common shares Warrants tures ------------------------------------------------------------------------- No. (000) $ No. (000) $ $ ------------------------------------------------------------------------- Balance, April 30, 2009 220,666 132,142 37,829 1,925 14 Issued upon conversion of convertible debentures - - - - (14) Issued under a convertible debentures financing - - - 747 - Expired warrants - - (14,226) (774) - Stock-based compensation - - - - - Other comprehensive loss the period - - - - - Net loss for the period - - - - - ------------------------------------------------------------------------- Balance, January 31, 2010 220,666 132,142 23,603 1,151 747 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2010 220,666 132,142 23,603 1,152 768 Issued for cash (net of issue costs of $94) 55,167 693 - - - Issued upon conversion of convertible debentures 834 50 - - (21) Issued under a convertible debenture financing - - - - 30 Expired warrants - - (23,603) (1,152) - Stock-based compensation - - - - - Other comprehensive gain for the period - - - - - Net loss for the period - - - - - ------------------------------------------------------------------------- Balance, January 31, 2011 276,667 132,885 - - 777 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumu- lated other compre- Share- Contributed hensive holders' surplus Deficit Loss equity ------------------------------------------------------------------------- $ $ $ $ ------------------------------------------------------------------------- Balance, April 30, 2009 9,836 (119,980) (280) 23,657 Issued upon conversion of convertible debentures 28 - - 14 Issued under a convertible debentures financing - - - 747 Expired warrants 774 - - - Stock-based compensation 149 - - 149 Other comprehensive loss for the period - - (383) (383) Net loss for the period - (6,211) - (6,211) ------------------------------------------------------------------------- Balance, January 31, 2010 10,787 (126,191) (663) 17,973 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance, April 30, 2010 10,802 (131,427) (684) 12,753 Issued for cash (net of issue costs of $94) - - - 693 Issued upon conversion of convertible debentures 10 - - 39 Issued under a convertible debenture financing - - - 30 Expired warrants 1,152 - - - Stock-based compensation 72 - - 72 Other comprehensive gain for the period - - 88 88 Net loss for the period - (3,007) - (3,007) ------------------------------------------------------------------------- Balance, January 31, 2011 12,036 (134,434) (596) 10,668 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MITEC TELECOM INC. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of Canadian dollars) Unaudited For the For the three months ended nine months ended January 31, January 31, 2011 2010 2011 2010 ------------------------------------------------------------------------- $ $ OPERATING ACTIVITIES Net loss for the period (954) (2,305) (3,007) (6,211) Items not affecting cash Amortization 342 420 958 1,309 (Gain) on disposal and impairment of property, plant and equipment - - (1) (25) Stock-based compensation 8 41 72 149 Accretion expense 128 93 373 308 Income tax recovery - (39) - (117) ------------------------------------------------------------------------- (476) (1,790) (1,605) (4,587) Changes in non-cash working capital balances related to operating activities 164 1,606 (385) 2,198 ------------------------------------------------------------------------- Cash flows used in operating activities (312) (184) (1,990) (2,389) ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (26) (35) (352) (361) Additions to intangible assets - (10) - (12) Proceeds on disposal of property, plant and equipment - 10 37 45 Purchases of short- term investments - - (363) (181) Sales of short-term investments - - 362 181 ------------------------------------------------------------------------- Cash flows used in investing activities (26) (35) (316) (328) ------------------------------------------------------------------------- FINANCING ACTIVITIES Secured debentures issued - (24) 500 1,679 Repayment of secured debentures (50) - (50) - Issuance of common shares 693 - 693 - Repayment of credit facility (692) - (196) (1,400) ------------------------------------------------------------------------- Cash flows generated (used) by financing activities (49) (24) 947 279 ------------------------------------------------------------------------- Gain (loss) on foreign cash and cash equivalents held 4 2 (2) (11) ------------------------------------------------------------------------- Net decrease in cash and cash equivalents for the period (383) (241) (1,361) (2,449) Cash, beginning of the period 908 2,277 1,886 4,485 ------------------------------------------------------------------------- Cash, end of the period 525 2,036 525 2,036 ------------------------------------------------------------------------- -------------------------------------------------------------------------