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Offshore Systems International announces Q2 2005 financial results
Vancouver, Canada — Offshore Systems International Ltd. (TSX: OSI/ OTCBB: OFSYF) today announced second quarter financial results for the three months ended May 31, 2005. Revenues were $1.9 million, compared to $2.8 million for the same quarter last year. Consolidated revenues for the first six months were $4.1 million, compared with $6.8 million for the same period ended May 31, 2004. Revenues for the quarter were affected by the timing of contract awards, and existing contract delivery schedules. The company confirmed the guidance released earlier this week that stated revenues for fiscal 2005 will be in the range of $16 to $19 million, up from the $13.5 million in 2004.
The company reported a loss of $1.7 million in Q2 for fiscal 2005, compared to earnings of $380,088 for the second quarter in 2004. For the three months ended May 31, 2005, net earnings available to common shareholders were a loss of $6.9 million, or a loss of $0.25 per share on a basic and diluted basis. This is largely the result of accounting for a one-time accretive dividend on the Class B Preference Shares Series 2, as required by U.S. GAAP accounting. For the six months ended May 31, 2005, the company reported a loss of $1.9 million, compared to earnings of $931,879 for the same period last year. Net earnings available to common shareholders for the first six months of 2005 were a loss of $7.1 million, or a loss of $0.26 per share on a basic and diluted basis.
Total backlog* was $20.2 million at the end of the second quarter ($12.7 million in option backlog*) for fiscal 2005, compared to $22.6 million ($13.9 million in option backlog*) for Q2 last year.
In releasing guidance for the year, OSI announced projected revenues in the range of $16 million to $19 million. This exceeds the $13.5 million the company reported in fiscal 2004. While its quarterly results can vary substantially, OSI indicated year-over-year results have a more meaningful trend. The company stated the guidance reflects current business indicators, with projected revenues based on management’s assessment of the new order pipeline and existing contracts. The guidance provided also includes Mapcon Mapping results, but does not account for the effect of any future acquisitions. OSI’s actual results could differ materially.
Conference Call
OSI will host a live conference call on July 15 at 1:00 p.m. Eastern (10 a.m. Pacific). You are invited to attend by calling 416-640-4127 or 800-814-3911. A taped replay of the conference call will be available until July 22, 2005 at 11:59 p.m. Eastern by calling 416-640-1917 or 877-289-8525, passcode 21131159#. A live audio webcast of the conference call will also be available at OSI’s website at www.osil.com. This webcast will be archived for approximately 90 days.
About Offshore Systems International Ltd.
Offshore Systems International Ltd. (OSI) makes computer-based geospatial intelligence software, systems and data products mainly for large government and civilian customers. The company has three business units: OSI Navigation Systems (moving map display systems and software for naval surface ships and submarines); OSI Applications (network-based map and target display software and services for national defence) and Mapcon Mapping (digital map data production services for civilian customers). OSI’s common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI) and the OTC Bulletin Board (OTCBB: OFSYF). Visit OSI’s website at www.osil.com for more information and the latest company updates.
*Non-GAAP Definitions
The company reports in accordance with U.S. GAAP. Total backlog, firm backlog, option backlog and working capital are non-GAAP measures that do not have a standardized meaning and are likely not comparable to similar measures presented by other issuers. These measures also do not have a comparable GAAP measure. Total backlog is the total of the firm and option backlogs. Firm backlog consists of firm, fixed, signed orders issued to the company and executable by the company subsequent to the balance sheet date. Option backlog consists of unexercised contract options at the balance sheet date and indefinite-quantity contracts executable by the company subsequent to the balance sheet date. Should our customers elect to exercise contract options or place orders against indefinite-quantity contracts, the option backlog converts to firm backlog.
Forward-Looking Statements
This news release contains items that 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. 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. Offshore Systems International can give no assurances that its representations will be achieved or that it will update them at any time in the future.
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Jane Hayward
Investor Relations |
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| Phone: (613) 287-0462 |
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| Toll-Free: (888) 880-9797 |
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