FINANCIAL NEWSFOR: DATAWAVE SYSTEMS INC.
CDNX SYMBOL: DTV
OTC Bulletin Board SYMBOL: DWVSF
NOVEMBER 8, 2000 - 18:06 EST
Datawave Systems Inc. Reports Results For Second Quarter
Fiscal 2001
VANCOUVER, BRITISH COLUMBIA--DataWave Systems Inc. today reported
its financial results for the second quarter, ending September 30,
2000, in fiscal 2001.
Revenues generated from the resale of prepaid long distance time
in the U.S. increased 5% to $5,053,823 for the six months ended
September 30, 2000 compared with $4,818,229 with the same period
last year. Revenues from sale of prepaid long distance phone
cards through the DataWave Merchandisers ("DTMs") increased 11%
for the six months compared with the same period last year.
"A Net Loss (before unusual items) for the quarter of $243,614
compares with Net Income of $602,286 in the same period last year.
The Net Loss is consistent with our aggressive development of new
technology and in moving forward with new alliances and
partnerships. Development costs for the quarter at $186,795 were
$113,836 higher than in the same period last year and are running
at 7% of revenues compared with 3% last year. We expect this trend
will continue for the balance of the fiscal year," reports Josh
Emanuel, President and CEO. "Test results from both the Lipman and
Coinstar developments are very encouraging and there is a high
level of interest in the marketplace in what we are doing,"
reports Bill Turner, Vice President, Business Development.
A development plan for enhancement of the DataWave System is in
place which, when complete, will allow DataWave to offer prepaid
services for other new product lines such as Prepaid Cash Cards,
Prepaid Travel Cards, Prepaid Gift Cards, Prepaid Internet Payment
Cards (the recent announcement of a joint project with Michigan
National Bank provides for development of technology related to
the marketing and distribution of a prepaid payment card) and Bus
Passes.
Development expenses for the six months were $375,817 or 7% of
revenues compared with $152,635 or 3% of revenues in the same
period last year. The Company expenses development costs as they
are incurred.
At September 30, 2000, the Company had working capital of
$1,835,185 and cash and cash equivalents of $3,127,422 compared
with a deficiency of $2,728,224 and cash of $1,303,582 at
September 30 last year.
/T/
Expressed in 3 months 3 months 6 months 6 months
thousands of ended ended ended ended
US Dollars Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 2000
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Revenues $2,509 $2,505 $5,053 $4,818
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Earnings (loss)
interest, taxes
and depreciation
(EBITDA) $(101) $863 $94 $953
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Loss (income)
before unusual
items $(244) $602 $(200) $423
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Unusual items - $377 - $1,287
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Net loss (income) $(244) $979 $(200) $1,710
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Loss (income)
per share $(0.006) $0.036 $(0.005) $0.064
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Loss (income)
per share
fully diluted $(0.004) $0.021 $(0.003) $0.037
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Certain of the prior period's amounts have been reclassified
to conform to the current period's presentation for the
financial statements.
/T/
About DataWave (https://www.datawave.ca)
DataWave Systems designs, develops, produces, owns and manages a
proprietary, intelligent, automated direct-merchandising network,
comprised of free-standing intelligent machines (DTMs) and over
the counter "swipe" units (OTCs) connected to the gateway and
database software through a wireless and/or landline wide area
network. This unique leading-edge technology provides for
point-of-sale activation, cash/credit card acceptance, detailed
reporting and 24/7 remote self-diagnostic troubleshooting, making
it virtually maintenance-free. The proven success of the DataWave
System has won many prestigious national accounts in the US
prepaid calling card market.
Recently named 21st fastest growing technology company in Canada
by Deloitte & Touche in its 2000 Canadian Technology Fast 50
Program, DataWave is now poised to capitalize on the flexibility
of its System by augmenting its product range to meet the
diversified and changing needs of the prepaid market and in
further developing strategic partnerships.
DataWave Systems Inc.
John Gunn, General Manager, CFO