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OSI Geospatial Reports 2006 Fourth Quarter and Full Year Results
Vancouver, Canada — OSI Geospatial Inc. (TSX: OSI; OTCBB: OSIIF) announced today its financial results for the fourth quarter and year ended November 30, 2006. All amounts are reported in U.S. dollars and in accordance with U.S. GAAP.
For the fourth quarter of 2006, OSI Geospatial reported revenue of $10.0 million, up from $5.1 million for the same quarter in 2005. The increase of $4.9 million includes approximately $2.4 million in marine systems revenue driven by the timing of new contract awards and the delivery schedule of existing contracts and approximately $2.5 million in land and air systems revenue gained through the company’s U.S. systems operations.
The significant revenue growth for 2006 was due to the company’s U.S. systems acquisition, and an increase in the marine and mapping business revenue. Consolidated revenue was $24.1 million compared to $11.1 million in 2005, an increase of 117%. The increase of $13 million includes $8.8 million in land and air systems revenue, $3.1 million in marine systems revenue, and $1.1 million in mapping revenue.
For the fourth quarter of 2006, the company reported net earnings of $2.7 million compared to net loss of $872,000 for the same quarter in 2005. For the full year of 2006, the net earnings of $693,000 compares to the net loss of $2.7 million for 2005. The increase in net earnings for the fourth quarter and for the full year of 2006 was largely attributable to the increase of marine systems revenue and the inclusion of revenue from the company’s U.S. systems acquisition.
For the fourth quarter of 2006, the net income attributable to common shareholders was $2.2 million or $0.07 per share compared to the net loss of $2.6 million or $0.09 per share in 2005. For the full year of 2006, the net loss attributable to common shareholders was $825,000 or $0.03 per share compared to the net loss available to common shareholders of $9.4 million or $0.34 per share in the prior year.
About OSI Geospatial
OSI Geospatial Inc. delivers advanced systems and software to address the growing need for enhanced situational awareness in command, control, communications, and intelligence applications. By providing essential tactical and geospatial information, the company’s systems and software help decision-makers know the precise location of mission operations across all military forces while integrating information with allies. OSI Geospatial systems are in use by military, government, and commercial customers around the world. The company is publicly traded on the Toronto Stock Exchange (OSI) and the Over the Counter Bulletin Board (OSIIF). For additional information please visit www.osigeospatial.com.
Forward-Looking Statements
Certain statements made in this news release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 138.4(9) of the Ontario Securities Act. These forward-looking statements are subject to risks and uncertainties. Actual results may differ from these projections. The risks associated with the Company's business include risks related to its reliance on international government contracts; the number of large customer transactions and the related lengthy sales cycles in executing those opportunities; uncertainties associated with competitive bidding processes and contract negotiations; actions by government authorities; the effects of general economic and political conditions; changing foreign exchange rates; and challenges related to the company's ability to introduce, develop and implement new products and enhancements to existing products that respond to customer requirements in a changing, complex, technological market. A complete discussion of the company’s risk factors is presented in the company’s most recent annual reports, filed with the United States Securities and Exchange Commission (“SEC”) and the Canadian Securities Administrators (“CSA”), as well as other periodic reports filed with the SEC and the CSA. The Company does not undertake any obligation to update the forward-looking statements.
Copyright © 2006 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.
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