2/6/2003 - Mindready Solutions Inc. (TSX:MNY), a leading supplier of test engineering, manufacturing automation and real-time communications solutions for the telecommunications, automotive and aerospace industries, announced its financial results for its fourth quarter and fiscal year ended December 31, 2002.
Revenues for the fourth quarter 2002 were $6.5 million, compared to $6.3 million for the previous quarter ended September 30, 2002, and $6.1 million for the fourth quarter of 2001.
For the fourth quarter of 2002, losses before income taxes and amortization of goodwill reached $3.2 million, including special charges of $2.1 million. These special charges comprise a provision of $1.7 million for unoccupied office space, a partial writeoff of goodwill for an amount of $1.1 million, and a writeoff of long-term assets of $0.6 million ; these amounts are partially compensated by the reversal of short-term asset writeoffs of $0.9 million, and of restructuring costs of $0.3 million posted for the previous quarters of 2002. Mindready's losses had reached $1.7 million for the third quarter of 2002, including special charges and other non-recurring expenses of $0.4 million. Losses totalled $18.6 million for the fourth quarter of 2001, including special charges for an amount of $15.2 million and other non-recurring expenses.
Despite difficult market conditions, the cashflow required for operating activities for the fourth quarter of 2002 were limited to $84,000, allowing Mindready to dispose of approximately $16.4 million in cash and cash equivalents as at December 31, 2002, or the equivalent of $1.37 per share.
"During the last quarter of 2002, Mindready once again reduced its expenses and pursued the diversification of its client base, 45% of which now comes from sectors other than telecommunications, most notably from aerospace, automotive, industrial, and medical sectors", commented Marc Doré, Mindready's interim President and CEO. "Because it reduced its operating expenses, Mindready has for the past three months assured its operations without having to dip into its liquidity. By streamlining its corporate structure, and with the orientation of its client base towards broader markets, we believe that 2003 will be a year full of challenges for Mindready. Our expertise, our diversification efforts, and the dynamic management of our balance sheet should place us in a favourable position for the eventual return of the markets", concluded Marc Doré.
At the fourth quarter of 2002, the world giant Texas Instruments and Mindready jointly announced the development of a next generation testing platform for the control and harmonization of automotive telematics systems. This platform allows the integration of navigational systems, digital video cameras, DVD videos, and MP3 music players: all technologies which will be found in the automobiles of the future, and all of which will use the same communications protocole IDB-1394. This consortium is working toward bringing this norm to market, of which the ultimate clients will be the automobile manufacturers in North America, in Europe, and in Asia.
For the fiscal year ended December 31, 2002, Mindready generated consolidated revenues of $24.9 million, compared to $59.8 million for the previous fiscal year. This marked decrease is explained mainly by the persistent slow down in the telecommunications industry, where Mindready realized more than 90% of its sales figure in 2001 compared to only 57% in 2002. Losses before income taxes and amortization of goodwill climbed to $24.9 million in 2002, compared to losses of $16.6 million in 2001. For the fiscal year ended December 31, 2002, operations required a cashflow of $7.1 million compared to an increase in liquidity of $10.5 million for the fiscal year 2001.
About Mindready Solutions Inc.
Mindready Solutions Inc., (TSX:MNY), is a leading supplier of test engineering, manufacturing automation, and real-time communications solutions for the telecommunications, automotive, aerospace, industrial, and medical sectors. Mindready offers a comprehensive range of industrial test solutions from x-ray, in-circuit, functional, and environmental testing to design, development, and integration of complete platforms and test stations. Recognized as a leader in IEEE-1394-based products and professional services, Mindready offers a complete range of innovative solutions based on this technology. Mindready's numerous clients include, notably, Nortel Networks, Sanmina-SCI, Solectron, Visteon, Alcatel, Hewlett-Packard, Wind River, Boeing, and Fujitsu.
For more information about Mindready and its products and services, consult the web site at www.mindready.com.
Previous Page | News by Category | News Search
If you found this page useful, bookmark and share it on: