Not So Good News ReleaseNHC announces first quarter results for fiscal 2000
MONTREAL, Dec. 17 /CNW/ - NHC Communications Inc. (TSE:NHC) today
announced results for the first quarter of fiscal year 2000. Revenues totaled
$1,549,400 for the first quarter ended October 29, 1999, compared to
$2,789,400 for the similar period last year, a decrease of 44%. The decrease
was mainly attributable to decreased IT spending from companies in
anticipation of year 2000 transition, as well as an overall industry decline
in connectivity equipment sales.
``The decline in connectivity sales and the impact of year 2000
transition is in line with the overall industry average,'' said Sylvain
Abitbol, President and Chief Executive Officer of NHC Communications.
``Moreover, in line with our focus on the VCCS(TM) (Virtual Cross-Connect
System) Business Unit, our sales force has been redeployed to support the
growth of VCCS(TM) sales. In addition, we are currently implementing a
restructuring program.''
Gross profit was $599,100, compared to $1,294,600 in the first quarter of
fiscal 1999. Operating loss from continuing operations was $1,090,800 in the
first quarter compared to $172,400 in the similar period last year. Loss for
the quarter totaled $1,136,100 ($0.09 per share on a primary basis) compared
to a loss of $20,600 ($0.00 per share on a primary basis) in the first quarter
of fiscal 1999.
NHC also announced that it will be mailing its 1999 annual consolidated
financial statements to its shareholders on December 17, 1999. The financial
statements include a going concern note to the effect that NHC may not have
sufficient funds to continue its business operations and meet its liabilities
as they fall due. In order to continue as a going concern, NHC may require
additional financing or sources of funding through equity financing or
additional borrowings, including a rescheduling of existing liabilities.
Should this not come to pass, NHC may not be able to continue as a going
concern.
A special committee of the board of directors of NHC consisting entirely
of non-management directors has been struck to explore the options available
to NHC, which might include a sale of assets or obtaining equity financing.
Although active negotiations are well underway, there can be no assurance that
any such transaction will be completed by NHC.
NHC Communications Inc. (TSE: NHC) specializes in developing products
that increase the competitive edge of its customers by applying innovative
technology to the delivery of high-speed mixed media networks. NHC is
committed to its customers by delivering superior solutions for physical layer
network infrastructures. NHC sells through leading resellers supported by
sales locations in Atlanta, Boston, Chicago, New York, Philadelphia, Paris
(France) and Montreal (Canada).
NHC may be contacted through its web site: www.nhc.com
NHC COMMUNICATIONS INC.
SUMMARY OF UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
For the Three-Month Period Ended October 29th, 1999
(in thousands of Canadian dollars, except per share amounts)
Q1 2000 Q1 1999
_________________________________________________________________________
Sales $ 1,549,400 $ 2,789,400
Gross profit $ 599,100 $ 1,294,600
Operating loss from continuing operations $ (1,090,800) $ (172,400)
Loss from continuing operations $ (1,139,000) $ (226,000)
Loss $ (1,136,100) $ (20,600)
Loss from continuing operations per share
- primary $ (0.09) $ (0.02)
Loss per share - primary $ (0.09) $ 0.00
Loss per share - fully diluted Anti-dilutive $ 0.00
Shares used in the calculation of the per share amounts:
Primary 12,629,221 12,615,659
Fully diluted Not applicable 15,441,300
-0- 12/17/1999
For further information: Sylvain Abitbol, President and CEO, NHC Communications Inc., 1-800-361-1965, Fax: (514) 735-8057, Internet: pr@nhc.com, Web Site: www.nhc.com; Sylvain Brossard, CA, Vice President, Finance and Operations, NHC Communications Inc., 1-800-361-1965, Fax: (514) 735-8057, Internet: s.brossard@nhc.com To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw.