Lightscape Technologies Inc. (OTCBB: LTSC), an operator of outdoor
LED billboards and provider of LED solutions, reported financial
results for the fiscal 2009 second quarter ending September 30,
2008.
Total net revenue for the three months ended September 30, 2008
increased 137% to $1.08 million, from $0.46 million for the three
months ended September 30, 2007. Operating expenses for the three
months ended September 30, 2008 were $1.01 million which represents
a 2% increase in operating expenses over $0.99 million for the
three months ended September 30, 2007.
Net loss for the three months ended September 30, 2008 was $0.74
million, or $0.01 per fully diluted share, compared to a net loss
of $0.99 million, or $0.02 per fully diluted share, for the three
months ended September 30, 2007.
Bondy Tan, President and CEO of Lightscape, said, "We continue
to see excellent opportunities for growth in our LED outdoor
billboard and LED solutions businesses as evidenced by our solid
revenue growth in the first half of fiscal 2009. Our partnerships
with Ogilvy & Mather, XinTong Media and major property owners
are beginning to yield tangible results and we continue to seek
opportunities to expand our LED billboard network. We're pleased
with our progress."
Business Highlights:
-- Lightscape has completed and installed three LED outdoor billboards in
the cities of Beijing, Shenzhen and Jinan in China and three additional
screens are in progress in Shenyang, Tianjin and Hangzhou in China.
-- Pre-selling of advertising space has begun in cooperation with Ogilvy
and XinTong Media for 11 out-of-home advertising screens in China and Hong
Kong.
-- LED solutions business also continues to improve with 25 LED solutions
projects in pipeline, of which 15 are on schedule to be completed by March
2009; we have already completed 18 in Hong Kong, China, Singapore and
Macau.
Results of Operations
Total net revenue for the three months ended September 30, 2008
was $1,084,091 representing a 137% increase from the total net
revenue of $457,206 for the three months ended September 30, 2007.
The increase in net revenues is primarily attributable to an
increase in revenues from LED solutions.
Revenue related to the Company's LED solutions business
increased to $749,920 for the three months ended September 30, 2008
from $23,242 during the three months ended September 30, 2007. The
increase in revenue resulted directly from the completion of
several new LED solutions contracts during the three months ended
September 30, 2008. This business is beginning to recognize more
significant revenue from the large LED contracts it was awarded in
2007 as it continues to enter into new contracts for significant
projects.
The LED outdoor billboard business is expected to contribute
more substantial revenue going forward as the Company ramps up the
selling of advertising space on the three LED billboard
installations completed during the three months ended September 30,
2008.
Revenue from the Company's other business, which includes sales
of lighting source products, was $334,171 for the three months
ended September 30, 2008 compared to $433,964 for the three months
ended September 30, 2007, representing a decrease of 23%. The
decrease in sales of lighting source products was due primarily to
internal restructuring.
Total cost of revenues for the three months ended September 30,
2008 was $730,940 which represents an increase of 137% as compared
with the total cost of revenues of $307,809 for the three months
ended September 30, 2007. The increase in the total cost of
revenues was a direct correlation to the corresponding 137%
increase in total sales revenue.
Operating expenses for the three months ended September 30, 2008
were $1,174,033, which represents an 18% increase in operating
expenses over $994,451 for the three months ended September 30,
2007. Selling and marketing expenses, general and administrative
expenses, and bad debts expenses constitute the main components of
the Company's operating expenses.
Selling and marketing expenses for the three months ended
September 30, 2008 decreased approximately 25% to $122,322 from
$162,449 for the three months ended September 30, 2007. The
decrease was mainly due to decreased advertising expenses and staff
costs. The Company anticipates that selling and marketing expenses
will remain steady or increase in the future to support the
Company's further expansion in its core LED outdoor billboard and
LED solutions businesses.
General and administrative expenses increased by 7% during the
three months ended September 30, 2008 to $890,398 from $832,002 for
the three months ended September 30, 2007. The increase was mainly
due to increased staff and business development costs for the three
months ended September 30, 2008 to provide the foundation to
support the Company's anticipated overall business growth,
particularly its LED outdoor billboard and LED solutions
businesses. The Company anticipates that general and administrative
costs will continue to increase in the foreseeable future as the
Company's operations continue to expand.
Bad debt expenses increased to $161,313 during the three months
ended September 30, 2008 from $nil for the three months ended
September 30, 2007. The increase in bad debts was due primarily to
the increase in allowance for doubtful accounts of the Company's
operational subsidiary in the lighting source products
business.
As of September 30, 2008, the Company had a net working capital
surplus of $10,359,950 compared with a surplus of $11,490,237 as of
March 31, 2008, representing a decrease in working capital of
$1,130,287. The cash and cash equivalents of the Company decreased
to $2,588,041 as at September 30, 2008 as compared to $3,978,500 as
of March 31, 2008.
Lightscape incurred capital expenditures of $39,436 during the
six months ended September 30, 2008 and $133,155 for the six months
ended September 30, 2007. The decrease in capital expenditures for
the six months ended September 30, 2008 as compared to September
30, 2007 was mainly attributable to decreased purchases of
equipment.
Additional information regarding Lightscape's financial
performance for the three and six months ending September 30, 2008
and a comparison to the periods ended September 30, 2007 can be
found in the financial tables below and in the Company's Quarterly
Report on Form 10-Q, which has been filed with the Securities and
Exchange Commission.
Lightscape also announces that President and CEO Bondy Tan and
Chief Strategist Aaron Ratner will present at the upcoming Roth
China Comes to Vegas Conference to be held on November 19 - 21,
2008 at the Wynn Hotel, Las Vegas, NV.
The Roth China Comes to Vegas Conference is a three-day
conference in Las Vegas that features presentations of executives
from approximately 70 U.S.-listed Chinese companies. During the
conference, Lightscape will be available to meet with analysts and
portfolio managers. Participation in the Roth China Comes to Vegas
Conference is by invitation only. For more information, please
visit http://www.roth.com/ or email conference@roth.com.
About Lightscape Technologies
Lightscape Technologies Inc. (OTCBB: LTSC) is one of the leading
digital media and LED solutions companies in Asia. Lightscape is
building an outdoor LED media network in China focused on LED
billboards in prime locations. The Company also designs, markets,
sells and installs large-scale LED video screens and LED systems,
operates outdoor LED advertising billboards, and provides LED
screen rentals. Lightscape is headquartered in Hong Kong, and the
Company has offices in Singapore, China and Macau. For additional
information, please visit www.lightscapetech.com.hk.
Cautionary Disclaimer -- Forward-Looking Statements
This news release contains "forward-looking statements," as that
term is defined in Section 27A of the United States Securities Act
of 1933, as amended, and Section 21E of the United States
Securities Exchange Act of 1934, as amended. Such forward-looking
statements include, among others, the estimation, expectation
and/or claim, as applicable, that: Lightscape anticipates overall
business growth, particularly within the Company's LED outdoor
advertising and LED solutions businesses; Lightscape intends to
continue to build and expand the Company's outdoor LED advertising
network and LED solutions business through partnerships with Ogilvy
& Mather, XinTong Media and major property owners; Lightscape
is currently installing and expects to complete the installation of
three LED outdoor advertising screens in Shenyang, Tianjin and
Hangzhou in China; Lightscape has begun and intends to pre-sell
advertising space in cooperation with Ogilvy & Mather and
XinTong Media for 11 out-of-home advertising screens in China and
Hong Kong; Lightscape has 25 LED solutions projects in the
pipeline, of which 15 are expected to be completed by March 2009;
Lightscape expects its LED outdoor advertising business to
contribute increased revenue in the near future as the Company
ramps up the selling of advertising space on the three LED
billboard installations which were completed during the three
months ended September 30, 2008; Lightscape expects its selling and
marketing expenses to remain steady or increase in the future to
support the Company's intended expansion in its core LED outdoor
advertising and LED solutions businesses; and Lightscape
anticipates that its general and administrative costs will continue
to increase in the foreseeable future alongside the anticipated
expansion of the Company's operations. Actual results could differ
from those projected in any forward-looking statements due to a
variety of risks, uncertainties and other factors, including, but
not limited to, delays in the supply of LED modules, LED video
screens and other hardware; risks of downturns in economic
conditions generally and in Hong Kong, China and Singapore
specifically; competition with larger companies with greater
resources and more experience in providing LED outdoor advertising
services and LED solutions; the availability of timely financing;
and the Company's ability to manage growth. These forward-looking
statements are made as of the date of this news release and the
Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although the Company believes that the beliefs, plans, expectations
and intentions contained in this press release are reasonable,
there can be no assurance those beliefs, plans, expectations, or
intentions will prove to be accurate. Investors should consider all
of the information set forth herein and should also refer to the
risk factors disclosed in the Company's periodic reports filed from
time-to-time with the Securities and Exchange Commission and
available at www.sec.gov.
(financial tables to follow)
LIGHTSCAPE TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Expressed in US dollars (except for per share amounts)
Three Months Ended Six Months Ended
September 30, September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
$ $ $ $
----------- ----------- ----------- -----------
Revenues:
Advertising revenue - - - -
LED solutions revenue 749,920 23,242 1,402,869 23,242
Other revenue 334,171 433,964 1,239,929 1,248,860
----------- ----------- ----------- -----------
Total net revenues 1,084,091 457,206 2,642,798 1,272,102
----------- ----------- ----------- -----------
Cost of revenues:
Cost of sales of
Advertising revenue - - - -
Cost of sales of LED
solutions revenue (488,368) (19,070) (996,003) (87,477)
Contract costs of Other
revenue (242,572) (288,739) (861,905) (848,422)
----------- ----------- ----------- -----------
Total cost of revenues (730,940) (307,809) (1,857,908) (935,899)
----------- ----------- ----------- -----------
Gross profit 353,151 149,397 784,890 336,203
Bad debts (161,313) - (246,953) -
Amortization (187,701) (187,400) (393,354) (374,626)
Depreciation (52,124) (64,456) (94,619) (126,302)
Selling and marketing
expenses (122,322) (162,449) (286,297) (357,756)
General and administrative
expenses (890,398) (832,002) (1,827,192) (1,590,802)
----------- ----------- ----------- -----------
Loss from operations (1,060,707) (1,096,910) (2,063,525) (2,113,283)
Interest expense (9,954) (39,592) (10,254) (395,645)
Interest income 283 11,152 609 35,452
Gain on redemption of
redeemable convertible
notes and options - 194,968 - 194,968
Other income 13,645 (7,294) 15,086 7,624
----------- ----------- ----------- -----------
Loss from continuing
operations before
income tax and
minority interests (1,056,733) (937,676) (2,058,084) (2,270,884)
Income taxes 206,977 - 206,977 -
----------- ----------- ----------- -----------
Net loss from continuing
operations before
minority interests (849,756) (937,676) (1,851,107) (2,270,884)
Minority interests 76,645 22,727 98,081 57,795
----------- ----------- ----------- -----------
Net loss from continuing
operations (773,111) (914,949) (1,753,026) (2,213,089)
----------- ----------- ----------- -----------
Discontinued operations
Net profit (loss) from
discontinued
operations, net of
income taxes 33,780 (77,713) 19,834 (99,545)
----------- ----------- ----------- -----------
Net loss attributable
to common shareholders (739,331) (992,662) (1,733,192) (2,312,634)
=========== =========== =========== ===========
Loss per share
- Basic and diluted
Continuing operations (0.01) (0.02) (0.03) (0.06)
Discontinued operations 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total (0.01) (0.02) (0.03) (0.06)
=========== =========== =========== ===========
Weighted average number
of common shares
outstanding
- Basic and diluted 55,876,410 40,320,975 55,876,410 38,894,033
=========== =========== =========== ===========
LIGHTSCAPE TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Expressed in US dollars
September 30, March 31,
2008 2008
(Unaudited) (Audited)
----------- -----------
$ $
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents 2,551,832 3,976,565
Accounts receivable, net of allowance for
doubtful accounts of $1,013,905 on September
30, 2008 and $817,790 on March 31, 2008 2,920,145 4,438,207
Costs and estimated earnings in excess of
billings on uncompleted Contracts 62,339 639,035
Prepaid expenses and other current assets 3,027,950 1,742,031
Inventories 4,196,215 3,903,798
Current assets of discontinued operations 673,666 699,847
----------- -----------
Total current assets 13,432,147 15,399,483
----------- -----------
Intangible assets, net 1,331,187 1,700,114
Goodwill 4,476,574 4,476,574
Plant and equipment, net 4,537,075 4,650,398
Net investment in sales-type leases of
discontinued operations 74,521 126,521
----------- -----------
10,419,357 10,953,607
----------- -----------
TOTAL ASSETS 23,851,504 26,353,090
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans - current portion 49,721 -
Secured loan 400,896 -
Trade payables 682,543 2,413,203
Amount due to a director 552,699 -
Amount due to a director of a subsidiary 150,823 -
Accrued expenses and other current liabilities 748,491 763,797
Obligations under capital leases - current
portion 12,046 1,774
Income tax payable 185,659 366,281
Current liabilities of discontinued operations 289,319 364,191
----------- -----------
Total current liabilities 3,072,197 3,909,246
----------- -----------
Non-current liabilities:
Bank loans - long-term portion 47,701 -
Obligations under capital leases - non-current
portion 4,582 5,469
----------- -----------
Total non-current liabilities 52,283 5,469
----------- -----------
Total liabilities 3,124,480 3,914,715
----------- -----------
Minority interest 1,323,623 1,421,702
----------- -----------
COMMITMENTS
Shareholders' equity:
Preferred stock, par value of $0.001
each; 100,000,000 shares authorized, none
issued or outstanding
Common stock
Authorized:
800,000,000 common shares, par value $0.001 per
share
Issued and outstanding:
55,876,410 common shares at September 30, 2008
and at March 31, 2008 55,876 55,876
Additional paid-in capital 34,140,708 34,140,708
Common stock warrants 344,673 344,673
Statutory surplus reserves 28,944 28,944
Accumulated other comprehensive income 1,202,362 1,082,442
Accumulated deficit (16,369,162) (14,635,970)
----------- -----------
Total shareholders' equity 19,403,401 21,016,673
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 23,851,504 26,353,090
=========== ===========
Contacts: Aaron Ratner Lightscape Technologies 917-519-3852
Thomas Smith or Robert Cavosi Ogilvy Public Relations
212-880-5200
Grafico Azioni Lightscape Technologies (CE) (USOTC:LTSC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Lightscape Technologies (CE) (USOTC:LTSC)
Storico
Da Giu 2023 a Giu 2024
