Product category:
Wireless Communications
News Release from: Hemisphere GPS
Edited by the Electronicstalk Editorial
Team on 19 August 2002
Substantial improvement for CSI Wireless
CSI Wireless has reported financial results for the period ended 30th June 2002.
CSI Wireless has reported financial results for the period ended 30th June 2002 For the six months ended 30th June 2002, CSI reported net earnings of $472,000, or $0.03 per share - a substantial improvement from the net loss of $2,123,000, or ($0.13) per share, in the first-half of 2001
This article was originally published on Electronicstalk on 12 Feb 2002 at 8.00am (UK)
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EBITDA for the first six months of the year was $1,569,000, as compared with $67,000 in the first six months of 2001, and gross margins improved to 41% from 38% for the same periods.
The company also reported improved revenues to $24,719,000 from $24,172,000 achieved in the same period of 2001.
Total expenses, excluding 2001 goodwill amortisation, decreased in the first six months of 2002 to $9,755,000 from $10,272,000 for the first six months of 2001 - reflecting a focused effort on expense management and cost containment.
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Sales and general and administration expenses were all reduced as operating efficiencies improved.
Amortisation of goodwill was zero for the period, as compared with $1,063,000 in the first half of 2001, which reflects the new accounting rules for goodwill and other intangible assets adopted by the Company on 1st January 2002.
"The company continues to make strong progress in improving the efficiency of operations, resulting in improved margins and reduced expenses", said Stephen Verhoeff, President and CEO of CSI Wireless.
"As our recently released products begin to gain momentum in the markets, we anticipate further improvements in our financial results".
The company continued its focused investment in research and development activities, with $4.1 million invested during the first half of 2002 in the Company's next generation wireless and GPS products.
Investment in research and development remains vitally important for CSI Wireless, and has helped enable the Company to release several new leading products for both the GPS and Telematics markets during the first half of this year.
Several more new products will be unveiled during the rest of the year.
The company's working capital at 30th June increased to $5,889,000, up 47% from 31st March 2002.
During the second quarter, the company generated $1,868,000 from the exercising of 705,000 warrants related to the financing of February 2001.
"The capital generated from these warrants has been important in strengthening our balance sheet", said Verhoeff.
"We view the exercising of these warrants as a vote of confidence from our major shareholders".
For the three-month period ended 30th June consolidated revenues were $10,761,000 in 2002, as compared with $11,961,000 in 2001.
Gross margins in the second quarter increased to 44% in 2002 from 35% in 2001.
The improvement stems from higher gross margins associated with the company's license and nonrecurring engineering fee payments received in the second quarter and on new products released during the past several quarters.
CSI Wireless' GPS Business Unit produced another profitable quarter in the three months ended 30th June 2002.
Its profits were reinvested into the Company's Wireless Business Unit, resulting in an overall second-quarter loss of $578,000, or ($0.03) per share, in 2002 compared with a substantially larger net loss of $1,632,000, or ($0.09) per share, in the same three months of 2001.
CSI invested $2,187,000 in research and development during the second quarter, which was focused on the Company's next generation of wireless and GPS products.
Management expects the investment will generate significant revenues and margins in the coming years.
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