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Offshore Systems International announces Q1 2005 financial results
Vancouver, Canada — Offshore Systems International Ltd. (TSX: OSI/ OTCBB: OFSYF) today announced first quarter financial results for the three months ended February 28, 2005. Revenues were $2.3 million, compared to $4.0 million for the same quarter last year. Revenues for the quarter were affected by the timing of when new contracts are awarded, as well as the delivery schedule of existing contracts. The Company recorded a loss of $219,591 or $0.01 per diluted share, compared to earnings of $551,791 or $0.02 per diluted share for the first quarter in 2004.
Total backlog* was $19.8 million at the end of Q1 ($7 million in option backlog*), compared to $18.0 million ($7 million in option backlog*) for Q1 last year. As at February 28, 2005, the Company had received $1.7 million in assistance from Technology Partnerships Canada to fund research and development activities.
The Company elected to prepare financial statements in accordance with U.S. Generally Accepted Accounting Principles effective December 1, 2004.
Conference Call
The Company will host a live conference call on Monday April 11, 2005 at 4 p.m. Eastern Time (1 p.m. Pacific Time) by calling 416-913-8746 or 800-814-3911. A taped replay of the conference call will be available until April 18 at 11:59 p.m. Eastern Time by calling 416-640-1917 or 877-289-8525, pass code 21120741#. A live audio webcast of the conference call will also be available at OSI’s website at www.osil.com. The webcast will be archived at www.osil.com for approximately 90 days.
About Offshore Systems International Ltd.
Offshore Systems International Ltd. (OSI) is the pioneer in geospatial intelligence and the world leading fleet supplier of electronic chart systems and software for navigation and situational awareness in NATO and allied markets. The Company’s core competency is electronic geography and the production, management and display of many forms of geographic data. The Company provides display systems and data for several defence, government and commercial customers, and conducts its operations through three business units: OSI Navigation Systems (moving map display systems and software), OSI Applications (situational awareness products and services for command and control systems) and OSI Geomatics (digital map and electronic chart data production services: land and marine). OSI’s common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI) and the OTC Bulletin Board (OTCBB: OFSYF). Please 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. Working capital is defined as current assets less current liabilities.
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, and industry supply.
Offshore Systems International Ltd.
Selected Consolidated Financial Information
(Canadian dollars - U.S. GAAP)
| Statement of Earnings Information |
Three months ended
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February 28, 2005
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February 29, 2004
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| Revenue |
2, 259, 863 |
4, 029, 760 |
| Earnings (loss) for the period |
(219,591) |
551,791 |
| Basic earnings (loss) per share |
(0.01) |
0.02 |
| Fully diluted earnings (loss) per share |
(0.01) |
0.02 |
| Balance Sheet Information |
February 28, 2005
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November 30, 2004
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| Cash |
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251,037 |
| Working capital |
7,994,833 |
8,287,798 |
| Current assets |
10,361,954 |
10,964,025 |
| Total assets |
11,784,565 |
12,310,738 |
| Current liabilities |
2,367,121 |
2,676,227 |
| Total liabilities |
2,367,121 |
2,676,227 |
| Shareholder's equity |
9,417,444 |
9,634,511 |
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For more information contact:
Jane Hayward
Investor Relations
+1 613 287 0462 or +1 888 880 9797
+1 613 287 0466 (FAX)
invest@osigeospatial.com
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