NEWS RELEASE !!!! 80 CN 21-Dec-99 at 10:38:00 10:50
First quarter momentum continues
for Unique Broadband Systems, Inc.
Symbol: UBS
Industry: TLS
Subject: ERN
News release via Canada NewsWire, Toronto 416-863-9350 -ME-
Attention Business/Financial Editors:
TORONTO, Dec. 21 /CNW/ - Unique Broadband Systems, Inc. (CDNX: UBS)
announced today that the momentum of the Company that began late in the first
quarter of fiscal 2000 increased during the second quarter with earnings for
the quarter rising to $806,363 compared with a loss of $772,181 in the first
quarter of the year. In the second quarter, sales were $2,358,218, more than
double the $836,745 in sales in the first quarter, to bring sales for the
first half to $3,174,963 compared with $4,110,445 last year.
Alex Dolgonos, President and Chief Executive Officer, said "As a result,
for the six months ended November 30, 1999 the Company achieved a profit of
$34,182. While this was lower than the $504,896 earned in the first half of
last year, the significantly improved sales and earnings in the second quarter
of fiscal 2000 are more indicative of the continuing improvements in the
Company's operations than the loss that occurred during the first three months
of the year."
He said the increase in earnings of the Company in the second quarter of
the year could be attributed to income directly derived from UBS's design
contract with XM Satellite Radio and the introduction of new and important
technology and products to the marketplace.
Dolgonos pointed out that "UBS is heavily involved in research and
development projects and sales and income do not always directly correlate.
Much of the work that is currently underway will not be reflected in income
until the products are manufactured and shipped, but is reflected in a
corresponding increase in assets of UBS."
The six month report mailed to shareholders today said that the Company
continues to tighten controls over selling and administrative expenses,
although advertising, promotion and travel costs have increased as a result of
the Company's pursuit of global markets. It is not expected that these will
decrease as the Company expands into more and more markets.
"With the signing of our teaming agreement with Hughes Network Systems,
we are now poised to capture a significant portion of satellite digital radio
business in North America and globally. Management remains confident that
there are a wide range of wireless broadband opportunities ahead and UBS
intends to take full advantage of those opportunities."
<<
UNIQUE BROADBAND SYSTEMS, INC.
SECOND QUARTER FISCAL 2000
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited - prepared by management)
Three months ended Six months ended
November 30 November 30
1999 1998 1999 1998
--------------------------------------------------------
Sales $2,338,218 $3,065,175 3,174,963 4,110,445
Cost of sales 1,060,403 989,362 1,352,157 1,380,881
--------------------------------------------------------
1,277,815 2,075,813 1,822,806 2,729,564
--------------------------------------------------------
Expense
Research 120,448 594,629 863,118 1,201,836
Selling and
administrative 236,747 594,870 716,664 1,023,542
Amortization 114,257 159,305 208,842 223,732
--------------------------------------------------------
471,452 1,348,804 1,788,624 2,449,110
--------------------------------------------------------
Profit from
operations 806,363 727,009 34,182 280,454
Other income (expense) 0 (131,866) 0 224,442
--------------------------------------------------------
Profit for the
period $806,363 $595,143 $34,182 $504,896
Earnings per share $0.01 $0.01 $0.00 $0.01
--------------------------------------------------------
Weighted average
number of shares 84,744,836 65,835,168 84,744,836 65,835,168
--------------------------------------------------------
UNIQUE BROADBAND SYSTEMS, INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited - prepared by management)
November 30
1999 1998
-------------------------------
Assets
Current assets $5,292,240 $4,316,283
Capital assets (net) 1,589,053 1,448,486
Other assets 3,298,831 1,633,772
-------------------------------
$10,180,124 $7,398,541
-------------------------------
Liabilities and Shareholders' Equity
Current liabilities 1,484,071 3,394,937
Long-term liabilities 695,381 2,212,521
Shareholders' equity 8,000,672 1,791,083
-------------------------------
$10,180,124 $7,398,541
-------------------------------
UNIQUE BROADBAND SYSTEMS, INC.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited - prepared by management)
Three months ended Six months ended
November 30 November 30
1999 1998 1999 1998
--------------------------------------------------------
Cash flows operating activities
Operating activities
Income for the
period $806,363 $595,143 $34,182 $504,896
Adjustment for
amortization 114,257 159,305 208,842 223,732
--------------------------------------------------------
Funds provided by
operations 920,620 754,448 243,024 728,628
Changes in non-cash
working capital (1,451,991) (1,066,791) (2,479,286) (963,615)
--------------------------------------------------------
(531,371) (312,343) (2,236,262) (234,987)
--------------------------------------------------------
Cash flows from
financing activities
(Increase in) repayment
of shareholder loans (1,943) 33,000 (779,718) 69,613
(Repayment of)
capital leases (80,165) (87,743) (160,330) (175,966)
Increase in
(repayment of)
long-term
borrowings (595,173) 737,670 (356,085) 700,339
Proceeds from
issuance of
share capital (net) 957,994 (32,600) 2,442,497 475,700
--------------------------------------------------------
280,713 650,327 1,146,364 1,069,686
--------------------------------------------------------
Cash flows from
investing activities
Purchase of capital
assets (187,832) (5,155) (235,818) (237,691)
--------------------------------------------------------
(187,832) (5,155) (235,818) (237,691)
--------------------------------------------------------
Increase (decrease)
in cash and cash
equivalents (438,490) 332,829 (1,325,716) 597,008
Cash and cash
equivalents at
beginning of period 756,285 572,693 1,643,511 308,514
--------------------------------------------------------
Cash and cash
equivalents at
end of period $317,795 $905,522 $317,795 $905,522
--------------------------------------------------------
--------------------------------------------------------
"Cash" comprises cash and short term investments and excludes cash held
for restricted purposes
>>
-0- 12/21/1999
/For further information: For Company information: Stephen Rosen, Chief
Financial Officer, Unique Broadband Systems, Inc, (905) 474-0091;
(Media) Robert Harper, Harper & Harper Public Relations, (416) 490-6961/
(UBS.)
CO: Unique Broadband Systems, Inc.
ST: Ontario
IN: TLS
SU: ERN
-30-