|
|  |
 |
OSI Reports Financial Results for Q4 & Fiscal Year End 2003
VANCOUVER, British Columbia -- Offshore Systems International Ltd. (OSI) (TSX: OSI - News; OTCBB: OFSYF - News) today announced its financial results for the fourth quarter and fiscal year ended November 30, 2003.
"In fiscal 2003 we strengthened our position in naval navigation and continued building from this niche into new areas to expand our market opportunities and ultimately improve revenue stability," said John Jacobson, President and CEO of OSI. "We maintained profitability despite delays in customer orders and investments for future growth. In addition, we signed several major contracts subsequent to our year end, and I am confident that our business development efforts last year will have a measurable impact on our financial results in fiscal 2004."
Financial Highlights
Fourth quarter revenue decreased 33% to $2.7 million (US$2.1 million), compared to $4.1 million in the same quarter last year. For the year ended November 30, 2003, revenue decreased 17% to $11.5 million (US$8.1 million), from $13.9 million for the year ended November 30, 2002.
The company's revenue can vary from period to period, primarily as a result of the level, timing and duration of customer procurements or delivery requirements within the Defense industry. During fiscal 2003, three key contracts, which provided significant revenue in prior quarters, reached substantial completion. Subsequent to year end, the company's Navigation Systems unit signed significant contracts that begin to generate revenue in fiscal 2004.
Earnings for the fourth quarter were $323,756 (US$242,969), equal to $0.01 (US$0.01) per diluted share, compared with earnings of $519,179, or $0.02 per diluted share, in the fourth quarter of 2002. Earnings for the full year decreased to $385,369 (US$271,119), equal to $0.01 (US$0.01) per diluted share, from $1,635,031, or $0.06 per diluted share, in fiscal 2002.
OSI's total order backlog at the end of fiscal 2003 was approximately $3.3 million (US$2.5 million) including option backlog of $2.4 million (US$1.9 million) versus $6.1 million at November 30, 2002, which included option backlog of $2.4 million. Subsequent to November 30, 2003, OSI has booked an additional $18.5 million (US$14.2 million) in total orders, including an additional $14.5 million (US$11.2 million) of option backlog.
At November 30, 2003, current assets totalled $10.4 million (US$8.0 million) and current liabilities totalled $2.3 million (US$1.8 million). The resulting working capital position of $8.1 million (US$6.2 million) is an increase of $3.6 million (US$2.8 million) over the fiscal 2002 year-end position of $4.4 million. Cash and cash equivalents were $3.9 million (US$3.0 million) at November 30, 2003, versus $3.2 million at November 30, 2002.
Operational Highlights
- September 2003: Announced the appointment of Mr. Peter W. Roberts, Chief Financial Officer of Sierra Wireless, Inc., to the Company's Board of Directors and its Audit Committee.
- September 2003: Announced that its Data production unit, OSI Geomatics, had received new orders worth more than $1,500,000 and its new Applications unit had made five initial sales of its COP-IDS™ product into the military command and control market.
- November 2003: Announced that Alan Vlemmiks had joined the company as Director of Sales and Marketing, Navigation Systems. Mr. Vlemmiks, who has 28 years of experience in tactical sales and strategic business development, is expected to build upon OSI's leadership position in military navigation systems as that market broadens beyond early adoption.
- December 2003: Announced the delivery of developer tool kits and support for the COP-IDS(TM) server platform. This is expected to extend the capabilities of third-party application developers and increase the availability of additional products for potential COP-IDS™ customers.
- December 2003: The Canadian Navy awarded a $800,000 contract to OSI for the deployment of navigation systems on new training vessels, with deliveries to commence in April 2004. This is the latest order following the Canadian Navy's fleet purchase of OSI's ECPINS-M navigation systems.
- January 2003: Subsequent to year-end, the Company announced a major fleet-wide contract with the United Kingdom Royal Navy. OSI, as part of a successful teaming arrangement with Lockheed Martin UK and Kelvin Hughes Ltd., will begin to deliver ECPINS-M software to the Royal Navy fleet in mid-2004. The initial purchases total approximately CDN $3 million. The total contract value, including long term support and options for auxiliary systems and software development is approximately CDN $17.5 million.
About Offshore Systems International Limited
Offshore Systems International Ltd. (OSI) was founded in 1977 and is a leader in delivering products and systems for situational awareness. The company provides display systems and geo-spatial data within mission-critical applications for several defense and commercial customers. OSI conducts its operations through three business units: Geomatics (data production and distribution), Navigation Systems, and Applications (products and services for command and control systems). OSI's common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI - News) and OTC Bulletin Board (OTCBB: OFSYF - News). For more information, please visit www.osil.com.
Offshore Systems International Ltd. 107 - 930 West 1st Street, North Vancouver, BC, Canada, V7P 3N4, telephone: (604) 904-4600, fax: (604) 987-2555. ECPINS and COP-IDS are trademarks of Offshore Systems Limited. All other trade names mentioned are trademarks and/or registered trademarks of their respective owners.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws including Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, OSI's analysis of opportunities in the acquisition and development of various project interests and other matters. These statements are made under the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995 and, as such, involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Although Offshore Systems International believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, uncertainties associated with contract negotiations, industry supply.
Offshore Systems International Ltd.
Selected Consolidated Financial Information (Unaudited)
(Canadian dollars - Canadian GAAP)
| Statement of Earnings Information |
Three months ended November 30 2003 (unaudited)
|
Years ended November 30 2002 (unaudited)
|
|
2003
|
2002
|
2003
|
2002
|
| Revenue |
2,724,439 |
4,058,028 |
11,520,793 |
13,868,779 |
| Earnings (loss) for the period |
323,756 |
519,179 |
385,369 |
1,635,031 |
| Basic earnings per share |
0.01 |
0.02 |
0.01 |
0.06 |
| Fully diluted earnings per share |
0.01 |
0.02 |
0.01 |
0.06 |
| Balance Sheet Information |
November 30 2003
(unaudited)
|
November 30 2002
(unaudited)
|
| Cash and cash equivalents |
3,837,555 |
3,244,048 |
| Working capital |
8,071,926 |
4,449,492 |
| Current assets |
10,377,836 |
8,810,568 |
| Total assets |
11,728,257 |
10,766,438 |
| Current liabilities |
2,305,910 |
4,361,076 |
| Long-term debt |
187,384 |
372,717 |
| Total liabilities |
2,493,294 |
4,733,793 |
| Shareholder's equity |
9,234,963 |
6,032,645 |
|
|
 |
 |
Jane Hayward
Investor Relations |
|
|
| Phone: (613) 287-0462 |
 |
|
| Toll-Free: (888) 880-9797 |
|
|
|
| Send an email |
|
|
|
|
|
|
| |
|
|
|
|
