RDM Corporation Reports First Quarter Results
Toronto Stock Exchange Symbol: RC
Q1 2009 Highlights
- Total revenues were $7.1 million in the first quarter of fiscal
2009, unchanged from $7.1 million in the first quarter of last
year.
- Revenues in the Payment Processing Services segment doubled to
$2.2 million in Q1 2009, compared to $1.1 million a year earlier.
- Transaction volumes for RDM's Image & Transaction Management
System (ITMS(R)) averaged 3.3 million items per week during the
first quarter, compared to 2.1 million items per week a year
earlier, and 3.1 million items per week during Q4 2008.
- ITMS(R) end user locations increased from 14,900 to 15,900 during
the first quarter of 2009.
- RDM added five additional bank distributors and seven new
independent sales organizations (ISOs) during the quarter.
- RDM shipped 7,700 proprietary scanners during the quarter,
compared to 10,700 units in Q1 2008.
- Gross profit was $2.9 million or 42% of revenues, compared to $2.7
million or 38% of revenues in the first quarter of 2008.
- Net loss was $1.6 million or $0.08 per share (fully diluted) in Q1
2009, compared to net earnings of $1,000 or $0.00 per share in Q1
2008, and is due primarily to a foreign exchange loss on the
forward contracts.
- Cash and equivalents of $17.3 million at December 31, 2008, is
virtually unchanged from $17.4 million three months earlier.
“We made progress on some of our top strategic priorities in the first quarter during a time of significant macroeconomic instability,” said
Financial Review
RDM recorded revenues of
Gross profit increased to
Sales and marketing expense increased
RDM recognized a
RDM repurchased 190,400 shares in the first quarter under its Normal Course Issued Bid. At
Conference Call
RDM will be hosting a conference call to discuss the Company’s first quarter financial results on
About RDM Corporation
RDM Corporation is headquartered in
This news release contains forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RDM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RDM believes are appropriate in the circumstances. Many factors could cause RDM’s actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. Risk factors relating to RDM are discussed in the Risks and Uncertainties section of RDM’s Annual Information Form and year-end Management’s Discussion and Analysis. These factors should be considered carefully, and readers should not place undue reliance on RDM’s forward-looking statements. RDM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
RDM CORPORATION
Consolidated Balance Sheets
(Amounts In Canadian Dollars, In Thousands)
December 31, September 30,
2008 2008
Unaudited Audited
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Assets:
Current assets:
Cash and cash equivalents $ 17,264 $ 17,421
Accounts receivable 4,660 4,929
Inventories 5,904 6,325
Investment tax credit receivable 1,748 1,703
Other 963 1,087
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Total current assets 30,539 31,465
Furniture and equipment 2,955 2,893
Intangible assets 305 278
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Total assets $ 33,799 $ 34,636
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Liabilities and shareholders' equity:
Current liabilities:
Accounts payable and accrued liabilities $ 5,607 $ 4,945
Deferred revenue 841 631
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Total current liabilities 6,448 5,576
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Future income tax liability 127 201
Shareholders' equity:
Share capital 28,178 28,338
Contributed surplus 1,306 1,162
Retained earnings (deficit) (2,260) (641)
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Total shareholders' equity 27,224 28,859
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Total liabilities and shareholders' equity $ 33,799 $ 34,636
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RDM CORPORATION
Consolidated Statements of Operations and Deficit
(Amounts in Canadian Dollars, In Thousands, Except Per Share Amounts)
Three months ended
December 31
2008 2007
(unaudited) (unaudited)
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Revenue $ 7,087 $ 7,071
Cost of revenue 4,139 4,411
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Gross profit 2,948 2,660
Operating expenses:
Sales and marketing 1,425 1,145
Research and development 1,071 1,014
General and administration 478 389
Depreciation and amortization 60 57
Stock-based compensation 144 121
Foreign exchange loss 1,448 70
Interest income (59) (202)
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4,567 2,594
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Earnings (loss) before income taxes $ (1,619) $ 66
Income tax expense - 65
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Net earnings (loss) and comprehensive
earnings (loss) (1,619) 1
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Earnings (loss) per share - basic and diluted $ (0.08) $ 0.00
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RDM CORPORATION
Consolidated Statements of Cash Flows
(Amounts in Canadian Dollars, In Thousands)
Three months ended
December 31
2008 2007
(unaudited) (unaudited)
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Cash provided by (used in):
Operations:
Net Earnings (loss) $ (1,619) $ 1
Items not involving cash:
Amortization of furniture and equipment 212 179
Amortization of intangible assets 12 8
Stock based compensation 144 121
Future income taxes (74) 65
Change in non-cash operating working capital 1,641 684
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Cash provided by operations 316 1,058
Financing:
Repayment of share purchase loans - 8
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Cash provided by financing activities - 8
Investing:
Repurchase of share capital (160) -
Purchase of furniture and equipment (274) (484)
Additions to intangible assets (39) (2)
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Cash used in investing activities (473) (486)
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Increase (decrease) in cash and cash equivalents (157) 580
Cash and cash equivalents, beginning of year 17,421 17,418
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Cash and cash equivalents, end of period $ 17,264 $ 17,998
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SOURCE RDM Corporation