NovAtel Inc. (NASDAQ:NGPS), a precise positioning technology
company, today announced its financial results for the third
quarter ended September 30, 2005. Revenues in the third quarter
2005 were CDN $14.3 million (US $11.8 million) compared to CDN
$13.8 million (US $10.4 million) in the similar period a year ago.
The Company is reporting net income for the third quarter 2005 of
CDN $3.2 million (US $2.6 million) or CDN $0.36 (US $0.30) per
share (diluted) compared to a net income of CDN $2.9 million (US
$2.2 million) or CDN $0.33 (US $0.25) per share (diluted) in the
similar period a year ago. Revenues in the nine months ended
September 30, 2005 were CDN $47.1 million (US $38.4 million)
compared to CDN $39.6 million (US $29.7 million) in the similar
period a year ago. The Company is reporting net income for the nine
months ended September 30, 2005 of CDN $11.6 million (US $9.4
million) or CDN $1.32 (US $1.07) per share (diluted) compared to a
net income of CDN $7.0 million (US $5.3 million) or CDN $0.82 (US
$0.62) per share (diluted), in the similar period a year ago. "I am
pleased to announce continued year-over-year revenue growth for the
third quarter of 2005 compared to 2004 for NovAtel, as we
experienced strong sales of our precise positioning system
components into a number of vertical markets in our Special
Applications category, and higher revenues from our Geomatics
category," said Jon Ladd, President and CEO. "As expected, the
contribution from our Aerospace and Defence category was down due
to the substantial completion of certain contracts at the end of
2004." The Company's third quarter 2005 revenue in its Special
Applications category grew by 25% over the similar period in 2004.
The majority of this year-over-year revenue increase is
attributable to higher product shipments into the surveying/mapping
market, as well as into other applications, such as port
automation. "These revenue increases were partially dampened by
lower sales in the precision agriculture market, although we are
optimistic that the recently announced agreement between AGCO
Corporation and BEELINE Technologies, Inc. will result in increased
shipments beginning in the fourth quarter 2005, which we expect to
continue through 2006," Ladd continued. Revenue in the Company's
Geomatics category in the third quarter of 2005 increased by 32%
over the similar period a year ago due to higher revenues
attributable to the Company's joint venture, Point, Inc., and
design wins with new geomatics customers. "Our overall business
with Point has been on an upward trend this year, reflecting the
commitment we and our joint venture partner, Sokkia Co. Ltd., have
made with Point management towards improving the operating
performance at Point," added Ladd. As expected, revenue from the
Company's Aerospace and Defence category in the third quarter of
2005 decreased by 62% over the similar period a year ago. "Our
Aerospace and Defence revenue is highly dependent on the timing of
government contracts and fluctuates quarter to quarter. Our third
quarter 2005 revenues were primarily comprised of deliveries to
Raytheon Company for Satellite Based Augmentation System (SBAS)
equipment for the US WAAS program," stated Ladd. NovAtel's
Executive Vice President and CFO, Werner Gartner, commented, "The
4% growth in reported year-over-year third quarter revenue was
somewhat restrained by the lower US dollar relative to the Canadian
dollar. Our third quarter 2005 revenues grew at approximately 13%
in US dollars, the base currency of the majority of our revenues."
"The growth in revenue, combined with steady gross margins and
higher operating expenses, resulted in operating income of CDN $2.9
million in the third quarter of 2005, compared to CDN $3.1 million
in the third quarter of 2004," continued Gartner. "In terms of cash
flow, we generated positive cash flow from operations of CDN $3.6
million, enabling us to maintain a cash/short term investments
balance of CDN $30.0 million, even after acquiring Waypoint
Consulting Inc. for CDN $3.3 million." Foreign Exchange Although
approximately 95% of the Company's revenues are earned in US
dollars, the Company's financial results are reported in Canadian
dollars and in accordance with Canadian generally accepted
accounting principles. The CDN/US dollar exchange rate has declined
from an average rate of approximately CDN $1.30 per US dollar in
all of 2004 to a rate of CDN $1.16 per US dollar as of September
30, 2005. The US dollar financial information presented above is
translated from the Canadian dollar financial information at the
average rates in effect during the relevant reporting periods, as
follows: -0- *T Three months ended Nine months ended
-------------------- ------------------- Sep. 30, Oct. 2, Sep. 30,
Oct. 2, 2005 2004 2005 2004 --------------------
------------------- Canadian dollar per US dollar $1.216 $1.327
$1.229 $1.332 *T During the conference call scheduled for this
afternoon, the Company will be providing updates and further
information on the following: revenues from the Special
Applications, Aerospace & Defence and Geomatics categories;
Point, Inc.; its recent acquisition of Waypoint Consulting Inc.;
2005 trends; and recognition of future income tax assets. The
Company will have a conference call today at 4:30 p.m. ET.
Participants may access the NovAtel Inc. conference call by dialing
1-888-334-7880 (North America) or 416-695-7896 (International).
This call is also being web cast and can be accessed at NovAtel's
web site www.novatel.com or at www.fulldisclosure.com. A replay of
the conference call will be available until November 3, 2005 by
dialing 1-888-509-0082 (North America) or 416-695-5275
(International), or until January 15, 2006 at the web addresses
noted above. The web cast is also being distributed over CCBN's
Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through
CCBN's individual investor centre at www.fulldisclosure.com or by
visiting any of the investor sites in CCBN's Individual Investor
Network such as America Online's Personal Finance Channel, Fidelity
Investments(R) (Fidelity.com) and others. Institutional investors
can access the call via CCBN's password-protected event management
site, StreetEvents (www.streetevents.com). NovAtel designs, markets
and sells high-precision GPS and other positioning components and
sub-systems used in a wide variety of commercial applications
principally in the aviation, geomatics (surveying and mapping),
mining, precision agriculture, marine and defence industries.
NovAtel's solutions combine hardware, such as receivers and
antennas, with software to enable its customers to fully integrate
the Company's high-precision GPS technology into their respective
products and systems. NovAtel, an ISO 9001 certified company, is
focused on supplying core high-precision positioning technology to
OEMs and system integrators who build systems for various end
market applications. For more information, visit www.novatel.com.
Certain statements in this news release, including those about the
Company's future plans and intentions, long-term growth prospects,
levels of activity or other future events, are forward-looking
statements. These forward-looking statements are not based on
historical facts but rather on management's current expectations
regarding NovAtel's future growth, results of operations,
performance, future capital and other expenditures, competitive
advantages, business prospects and opportunities. Wherever
possible, words such as ''anticipate'', ''believe'', ''expect'',
''may'', ''could'', ''will'', ''potential'', ''intend'',
''estimate'', ''should'', ''plan'', ''predict', "forecast"' or the
negative or other variations of these words, or similar words or
phrases, have been used to identify these forward-looking
statements. Forward-looking statements involve significant known
and unknown risks, uncertainties and assumptions. Many factors
could cause actual results, performance or achievements to differ
materially from the results discussed or implied in the
forward-looking statements, including operating results of Point,
impact and timing of large orders, US dollar to Canadian dollar
exchange rate fluctuations, establishing and maintaining effective
distribution channels, certification and market acceptance of
NovAtel's new products, credit risks of customers and Point,
pricing pressures in the market and other competitive factors,
maintaining technological leadership, timing of revenue recognition
in connection with certain contracts, actions by governmental
authorities, and other factors described in our Form 20-F for the
year ended December 31, 2004 and other SEC filings, many of which
are beyond the control of NovAtel. These factors should be
considered carefully and undue reliance should not be placed on the
forward-looking statements. These forward-looking statements are
made as of the date of this news release, and NovAtel assumes no
obligation to update or revise them to reflect new events or
circumstances. -0- *T NOVATEL INC. CONSOLIDATED BALANCE SHEETS (in
Canadian $ thousands) (Unaudited) Sep. 30, Dec. 31, 2005 2004
--------- --------- ASSETS Current assets: Cash and cash
equivalents $ 3,242 $ 8,949 Short-term investments 26,803 14,410
Accounts receivable 9,506 9,413 Related party receivables 1,360
1,591 Related party notes receivable 1,568 1,614 Inventories 5,368
5,191 Prepaid expenses and deposits 3,916 268 Future income tax
asset - current portion 1,924 1,286 --------- --------- Total
current assets 53,687 42,722 Capital assets 3,176 3,447 Intangible
assets 2,813 2,515 Deferred development costs 1,772 2,359 Future
income tax asset - long term portion 2,546 1,903 ---------
--------- Total assets $63,994 $52,946 --------- ---------
--------- --------- LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable and accrued liabilities $ 8,657 $
9,148 Related party payables 4 345 Note payable 1,568 1,614
Deferred revenue 354 755 Provision for future warranty costs 573
538 --------- --------- Total current liabilities 11,156 12,400
Deferred gain on sale/leaseback of capital assets 370 453 ---------
--------- Total liabilities 11,526 12,853 --------- ---------
Shareholders' equity: Capital stock 39,338 38,870 Contributed
surplus 764 442 Retained earnings 12,366 781 --------- ---------
Total shareholders' equity 52,468 40,093 --------- --------- Total
liabilities and shareholders' equity $63,994 $52,946 ---------
--------- --------- --------- NOVATEL INC. CONSOLIDATED STATEMENTS
OF OPERATIONS (in Canadian $ thousands, except per share data)
(Unaudited) Three months ended Nine months ended Sep. 30, Oct. 2,
Sep. 30, Oct. 2, 2005 2004 2005 2004 --------- -------- --------
--------- Revenues: Product sales $13,791 $12,646 $44,805 $35,097
NRE fees 504 1,131 2,333 4,464 --------- -------- --------
--------- Total revenues 14,295 13,777 47,138 39,561 ---------
-------- -------- --------- Cost of sales: Cost of product sales
5,200 4,757 17,273 13,878 Cost of NRE fees 414 652 1,458 2,424
--------- -------- -------- --------- Total cost of sales 5,614
5,409 18,731 16,302 --------- -------- -------- --------- Gross
profit 8,681 8,368 28,407 23,259 --------- -------- --------
--------- Operating expenses: Research and development 2,606 2,394
7,826 6,830 Selling and marketing 1,689 1,485 4,907 4,533 General
and administration 1,520 1,325 5,154 3,935 Share offering costs -
20 - 742 --------- -------- -------- --------- Total operating
expenses 5,815 5,224 17,887 16,040 --------- -------- --------
--------- Operating income 2,866 3,144 10,520 7,219 Interest
income, net 218 87 541 195 Other expense (212) (342) (296) (327)
Benefit of prior years' investment tax credits - - 1,036 -
--------- -------- -------- --------- Income from continuing
operations before income taxes 2,872 2,889 11,801 7,087 Income
taxes Current provision 75 18 1,497 52 Future income tax expense
(benefit) (371) - (1,281) - --------- -------- -------- ---------
Net income $ 3,168 $ 2,871 $11,585 $ 7,035 --------- --------
-------- --------- --------- -------- -------- --------- Net income
per share (basic) $ 0.38 $ 0.36 $ 1.40 $ 0.88 --------- --------
-------- --------- --------- -------- -------- --------- Weighted
average shares outstanding (basic) 8,304 8,069 8,280 8,033
--------- -------- -------- --------- --------- -------- --------
--------- Net income per share (diluted) $ 0.36 $ 0.33 $ 1.32 $
0.82 --------- -------- -------- --------- --------- --------
-------- --------- *T NOVATEL INC. (Nasdaq:NGPS)
Grafico Azioni Novatel (MM) (NASDAQ:NGPS)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Novatel (MM) (NASDAQ:NGPS)
Storico
Da Giu 2023 a Giu 2024