RDM Corporation Reports First Quarter Financial Results
Toronto Stock Exchange Symbol: RC
WATERLOO, ON, Feb. 8 /PRNewswire-FirstCall/ - RDM Corporation (TSX: RC), a leading developer of specialized software and hardware products for electronic payment processing, today reported its financial results for the three month period ended December 31, 2010. All figures are reported in Canadian dollars unless otherwise stated.
Q1 2011 Highlights
- The Special Committee of the Board concluded its work and recommended a renewed focus on profitability. Management changes were also announced and Mr. Randy Fowlie was named as interim CEO.
- Total revenues were $6.3 million in the first quarter of fiscal 2011, compared to $5.7 million in the first quarter of 2010.
- Digital Imaging Product revenue increased 21% to $3.6 million in the first quarter of fiscal 2001, compared to $3.0 million in the first quarter of 2010.
- RDM's Image & Transaction Management System (ITMS®) revenue, which is recurring in nature, was $2.4 million in the first quarter of 2011, compared to $2.4 million in the first quarter of 2010.
- Gross profit was $2.1 million or 33% of revenues, in the first quarter of 2011, compared to $2.3 million or 40% of revenues in the first quarter of 2010.
- Net loss was $85,000 or $(0.00) per share in the first quarter of 2011, compared to a loss of $489,000 or $(0.02) per share in Q1 2010.
- Cash and equivalents were $14.6 million at December 31, 2010, up from $14.2 million at September 30, 2010.
"Progress is being made towards returning the Company to profitability. We are not quite there, but this will remain a primary focus for 2011. In addition, we saw some indications in the first quarter that the remote deposit capture market may return to growth this year. In particular, scanner revenue, which can be a leading indicator of new RDC deployments, increased 21% over the prior year" said Randy Fowlie, President and Chief Executive Officer of RDM Corporation. "I believe we can grow the business this year while focusing on our top priority of returning the Company to profitability."
Conference Call
RDM will be hosting a conference call to discuss the Company's first quarter results on February 8, 2011 at 9:00 a.m. EST. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived at www.rdmcorp.com. Detailed financial results and Management's Discussion and Analysis will be filed on www.sedar.com.
About RDM Corporation
RDM Corporation is headquartered in Waterloo, Ontario and trades on the Toronto Stock Exchange under the symbol RC. RDM is a leading provider of specialized software and hardware products for electronic payment processing. RDM has pioneered electronic check conversion systems and web based image and transaction management services for banks, retailers, payment processors and government agencies as well as print quality control and image quality systems for a variety of global customers. For more information, visit RDM's website at www.RDMCorp.com
| RDM CORPORATION | |||
| Consolidated Balance Sheets | |||
| (Amounts In Canadian Dollars, In Thousands) | |||
| December 31,2010 Unaudited |
September 30, 2010 Audited |
||
| Assets: | |||
| Current assets: | |||
| Cash and cash equivalents | $ 14,619 | $ 14,198 | |
| Accounts receivable | 4,554 | 3,539 | |
| Inventories | 3,383 | 3,821 | |
| Investment tax credit receivable | 1,430 | 1,393 | |
| Prepaid and other assets | 1,438 | 1,921 | |
| Total current assets | 25,424 | 24,872 | |
| Furniture and equipment | 3,396 | 3,552 | |
| Intangible assets | 411 | 393 | |
| Total assets | $ 29,231 | $ 28,817 | |
| Liabilities and shareholders' equity: | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities | $ 4,215 | $ 4,186 | |
| Deferred revenue | 349 | 370 | |
| Total current liabilities | 4,564 | 4,556 | |
| Future income tax liability | 201 | 201 | |
| Shareholders' equity: | |||
| Share capital | 28,189 | 27,558 | |
| Contributed surplus | 2,029 | 2,169 | |
| Deficit | (5,752) | (5,667) | |
| Total shareholders' equity | 24,466 | 24,060 | |
| Commitments | |||
| Total liabilities and shareholders' equity | $ 29,231 | $ 28,817 | |
| RDM CORPORATION | |||
| Consolidated Statements of Operations | |||
| (Amounts in Canadian Dollars, In Thousands, Except Per Share Amounts) | |||
| |
|||
| Three months ended December 31 | 2011 (unaudited) |
2010 (unaudited) |
|
| Revenue | $ 6,284 | $ 5,702 | |
| Cost of revenue | 4,214 | 3,446 | |
| Gross profit | 2,070 | 2,256 | |
| Operating expenses (income): | |||
| Sales and marketing | 874 | 1,069 | |
| Research and development | 908 | 1,182 | |
| General and administration | 638 | 553 | |
| Amortization | 47 | 47 | |
| Stock-based compensation | 60 | 75 | |
| Foreign exchange loss (gain) | (340) | (172) | |
| Interest | (32) | (9) | |
| 2,155 | 2,745 | ||
| Income (Loss) before income taxes | (85) | (489) | |
| Income tax expense | |||
| Current | - | - | |
| Future | - | - | |
| - | - | ||
| Net income (loss) and comprehensive income (loss) | $ (85) | $ (489) | |
| Net loss per share - basic and diluted | $ (0.00) | $ (0.02 ) | |
| RDM CORPORATION | ||||
| Consolidated Statement of Changes in Shareholder's Equity | ||||
| (Amounts in Canadian Dollars, In Thousands) | ||||
| Share capital | Contributed surplus |
Deficit | Total | |
| Balance as at September 30, 2009 | $ 27,639 | $ 1,886 | $ (2,664) | $ 26,861 |
| Net loss and comprehensive loss | - | - | (3,003) | (3,003) |
| Repurchase of share capital | (81) | 25 | - | (56) |
| Stock-based compensation | 258 | 258 | ||
| Balance as at December 31, 2009 | $ 27,639 | $ 1,886 | $ (2,664) | $ 26,861 |
| Balance as at September 30, 2010 | $ 27,558 | $ 2,169 | $ (5,667) | $ 24,060 |
| Net income (loss) and comprehensive income (loss) | - | - | (85) | (85) |
| Repurchase of share capital | (105) | 21 | - | (84) |
| Issuance of share capital | 736 | (221) | - | 515 |
| Stock-based compensation | - | 60 | - | 60 |
| Balance as at December 31, 2010 | $ 28,189 | $ 2,029 | $ (5,752) | $ (24,466) |
| RDM CORPORATION | |||||
| Consolidated Statements of Cash Flows | |||||
| (Amounts in Canadian Dollars, In Thousands) | |||||
| Three months ended December 31 | 2011 (unaudited) |
2010 (unaudited) |
|||
| Cash provided by (used in): | |||||
| Operations: | |||||
| Net income (loss) and comprehensive income (loss) | $ (85) | $ (489) | |||
| Items not involving cash: | |||||
| Amortization of furniture and equipment | 246 | 279 | |||
| Amortization of intangible assets | 9 | 8 | |||
| Stock-based compensation | 60 | 75 | |||
| Change in non-cash operating working capital | (123) | 685 | |||
| Cash provided by operations | 107 | 558 | |||
| Financing: | |||||
| Issuance of share capital | 515 | - | |||
| Cash provided by financing activities | 515 | - | |||
| Investing: | |||||
| Repurchase of share capital | (84) | (28) | |||
| Purchase of furniture and equipment | (90) | (57) | |||
| Additions to intangible assets | (27) | (40) | |||
| Cash used in investing activities | (201) | (125) | |||
| Increase (decrease) in cash and cash equivalents | 421 | 433 | |||
| Cash and cash equivalents, beginning of year | 14,198 | 15,718 | |||
| Cash and cash equivalents, end of year | $ 14,619 | $ 16,151 | |||
SOURCE RDM Corporation
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