News From Canada's Leader in RFID
NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE - A SERVICE OF ITG
FOR: SIRIT TECHNOLOGIES INC.
CDNX SYMBOL: YSR
APRIL 25, 2001 - 10:45 EDT
SIRIT Technologies Inc. Reports Strong Growth In The
First Quarter Of Fiscal 2001
TORONTO, ONTARIO--SIRIT Technologies Inc. ("SIRIT" or the
"Company"), a Canadian-based public company, today reported
unaudited financial results for the three-month period ended
February 28, 2001. In this quarter revenue of $5,729,000 was
reported an increase of $4,607,000 for the similar period in
fiscal 2000 when revenue was $1,122,000.
SIRIT is pleased to report that this is the last quarter in which
it will have to report legal expenses in connection with the
litigation against Able Telcom. The Company has been able to
offset these expenses by the receipt of approximately 840,000
Bracknell Corporation common shares valued at $7.1 million, which
represents the final settlement of the judgment against Able
received in May 2000. A more detailed account of the litigation
and the terms of its settlement are available in SIRIT's Year 2000
Annual Report, which was recently mailed to shareholders and is
available on our website.
Total expenses for continuing operations for the quarter were
$1,380,000, an increase of $730,000 over the first quarter of
fiscal 2000 when expenses for on-going operations were $650,000.
The increased operating expenses were associated with the added
expenses of the acquired U.K. subsidiaries, i2R and id Systems,
and with increased costs for legal and other professional
services. Amortization increased to $304,000 from $76,000 as a
result of the acquisitions of the two companies.
Net income before taxes was $4,490,000 versus a net loss of
$504,000 in the first quarter of fiscal 2000 representing an
increase of $4,994,000. The increase in net income before taxes
was due to increased profitability in operations and to the final
payment of the judgment due to SIRIT as discussed above.
The earnings reported for the latest quarter ended February 28,
2001 were $0.07 per share, an increase of $0.09 per share over the
loss of $0.02 per share a year earlier. During the past twelve
months the average shares outstanding have increased by 5% to 34.1
million, largely result of shares issued in partial payment for
shares in the acquired subsidiaries.
A summary of the data for the first quarter of fiscal 2001 is
provided below, together with figures for the comparative 2000
period.
/T/
(Dollars in thousands except for per share amounts)
3 Months Ended (Unaudited) Feb 28, 2001 Feb 29, 2000
-----------------------------------------------------------------------
Revenues $5,729 $1,122
Net profit/(loss) before taxes $4,490 ($504)
Income/(Loss) per common share
Basic $0.07 ($0.02)
Fully Diluted $0.07 ($0.01)
Shares in millions
Outstanding (weighted average) 34.1 32.4
Fully diluted 37.2 34.1
/T/
During the quarter, SIRIT completed the acquisition of id Systems
Ltd. of Manchester, England. Established in 1994, id Systems is
recognized as a world leader in RFID. The company has expertise
in all leading RFID tag and smart label technologies manufactured
by global semiconductor companies including Omron, Phillips
Semiconductors and Texas Instruments. id Systems has a strong
commercial and marketing base which has resulted in a large number
of customers and an internationally recognized profile and brand
image.
id Systems, coupled with i2R which was acquired last year, provide
complementary skills to SIRIT with unrivalled RFID capabilities
and a dominant market position.. These acquisitions will lead to
substantial growth as the implementation of RFID technology is
being accepted by Fortune 500 companies. The id Systems purchase
represents another strategic initiative in the growth of SIRIT and
provides the Company with a significant competitive edge in the
rapidly growing RFID marketplace.
SIRIT is now in the process of completing the previously announced
merger with Gemstar Communications Inc. (Symbol: YGS on CDNX) of
Oakville, Ontario and the acquisition of MeterVision.com Inc., a
private New Brunswick based company. Both transactions will be
made through the exchange of common shares. The closings of the
transactions are subject to all requisite regulatory and other
approvals, including approval of the Canadian Venture Exchange
Inc. It is expected that both transactions can be closed prior to
May 31, 2001.
SIRIT focuses its business on wireless, e-commerce payment
solutions and identification systems using radio frequency
technology. SIRIT designs, develops and manufactures one of the
broadest ranges of radio frequency identification products
available today. SIRIT markets its products through its
partnerships with the end-user, distributors, integrators and
original equipment manufacturers.
SIRIT currently has 34.3 million shares outstanding.