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Offshore Systems International Reports Fiscal First-Quarter Earnings & Revenues
Vancouver, Canada -- Offshore Systems International Ltd. (TSX: OSI / OTCBB:OFSYF), a marine electronic navigation company with a strong defense niche, today announced strong first quarter operating results for its quarter ended February 28, 2003.
"We're very pleased to report OSI's thirteenth successive profitable quarter," said John Jacobson, President and CEO Offshore Systems International. "It's been a great quarter for the company: we had an exciting new product announcement, we built up our working capital with an institutional private placement and we received news that OSI is short-listed prior to final selection by two international navies."
Financial Highlights
During the fiscal first quarter of 2002, revenues increased 8% to $3.6 million (US$2.3 million) compared to $3.3 million in the same quarter last year. Earnings from operations increased to $248,248 from $169,862, in the year-earlier first quarter. Net earnings were $248,248 or $0.01 per diluted share, down from $267,852, or $0.01 a diluted share in the year-earlier first quarter, reflecting lower tax recoveries. All amounts are in Canadian dollars unless otherwise specified.
Offshore Systems' order backlog at the end of the fiscal 2003 first quarter was in excess of $2.3 million compared to $3.7 million at the end of its fiscal year November 30, 2002.
The Company's profitable growth and a private placement of preference shares helped to strengthen its balance sheet during the quarter. At February 28, 2003, the Company had working capital of $7.2 million compared to $4.4 million at November 30, 2002, OSI's year-end, including cash and cash equivalents of $6.2 million.
Operational Highlights
In January 2003, the Company proceeded with a Normal Course Issuer Bid whereby it will purchase its own shares out of the market through the facilities of the TSX. All shares repurchased by the Company will be cancelled. The bid commenced on January 16, 2003 and terminates January 15, 2004.
In February 2003, the Company announced that it has completed a private placement of US$2,000,000 (CDN$3,100,000) with a group of New York based institutional funds.
Also in February 2003, the Company announced the launch of COP-IDS, a client server application that allows customers to integrate OSI's mapping and imagery display technology into existing Command and Control systems rapidly and cost effectively. COP-IDS™ stands for Common Operational Picture - Image Display Server and it is designed to meet the emerging requirements for our international fleets to be able to operate from and share common tactical data in the field. COP-IDS™ allows our customers to share data across Command and Control systems, regardless of the systems in use.
In March 2003, the Company, through its wholly-owned subsidiary, OSI Geomatics Ltd., announced that it has won a contract with the City of Ottawa to produce land mapping data critical to the planning and management of city infrastructure in the Nation's capital.
Again, in March, 2003 the Company confirmed that OSI and its teaming partners have been short-listed as potential contractors to supply its ECPINS® navigation display system to two international customers in the military defence industry. The award of formal contracts is subject to further technical evaluation and preparation of formal agreements.
In April 2003, the Company received a contract from the Canadian Navy to develop submarine navigation systems for deployment on the Canadian Navy's Victoria Class Navy submarines.
The Company
Offshore Systems International Ltd. (OSI) provides precise electronic display systems and geo-spatial data for geographic situational awareness. Founded in 1977, OSI maintains a position of technological leadership in its field, a record appreciated by military, government, and commercial customers around the world. OSI conducts its operations through two business units: Offshore Systems Ltd. which provides systems for the dynamic display of geo-spatial data for mission-critical operations such as fleet navigation; and OSI Geomatics which provides analysis, production, and distribution of geo-spatial data for electronic display. OSI is listed on the Toronto Stock Exchange (TSX:OSI) and in the United States of America on the Over the Counter Bulletin Board (OTCBB:OFSYF). For more information, visit www.osl.com.
Forward-Looking Statements
Statements in this News Release, to the extent not based on historical events, constitute forward-looking statements. Forward-looking statements include, without limitation, statements evaluating market and general economic conditions in the preceding sections, and statements regarding future-oriented costs and expenditures. Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date thereof. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties with respect to the company include the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forwardlooking statements
Offshore Systems International Ltd.
Selected Consolidated Financial Information (Unaudited)
(Canadian dollars - Canadian GAAP)
| Statement of Earnings Information |
Three months ended February 28 2003 (unaudited)
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2003 |
2002 |
| Revenue |
3,563,175 |
3,285,518 |
| Earnings from operations |
248,248 |
169,862 |
| Tax recovery |
- |
97,990 |
| Earnings for the period |
248,248 |
267,852 |
| Basic earnings per share |
0.01 |
0.01 |
| Fully diluted earnings per share |
0.01 |
0.01 |
| Balance Sheet Information |
February 28 2003 (unaudited)
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November 30 2002 (unaudited)
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| Cash and cash equivalents |
6,154,779 |
3,244,048 |
| Working capital |
7,231,951 |
4,449,492 |
| Current assets |
10,027,113 |
8,810,568 |
| Total assets |
11,930,172 |
10,766,438 |
| Current liabilities |
2,795,162 |
4,361,076 |
| Long-term debt - royalties payable |
129,568 |
372,717 |
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For more information contact:
Jane Hayward
Investor Relations
+1 613 287 8004 or +1 888 880 9797
+1 613 287 0466 (FAX)
invest@osigeospatial.com
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