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					                infocorp

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Proven                          Informed                     Sophisticated
Infocorp Computer Solutions Ltd.

First Quarter Report

March 31, 2002
Chief Executive Officer’s Message

Dear Shareholders,

I am pleased to report that we are well on the way to successfully transitioning Infocorp
into a profitable, growth-oriented enterprise. As a result of the initiatives we put in place
last year and new sales closed this quarter, net income for the first quarter of 2002 was
$155,418 on revenue of $1.08 million.

During the quarter, we closed a contract with Digimarc ID Systems (formerly Polaroid ID
Systems) to implement an integrated service delivery and point-of-sale system to
manage drivers licensing for the State of Tennessee.          We also made significant
headway in developing further opportunities in our pipeline. We closed follow-on
business with IBM in connection with our installation in a major U.S. city. We also
delivered follow-on business in the Province of Manitoba. Finally, we announced a deal
with Covansys Corporation to implement an integrated service delivery and point-of-sale
system to manage motor vehicle registration, also in the State of Tennessee.

We continue to make progress in the strategic and technology direction that we
announced in September of last year. In terms of our ongoing attention to the expense
line of the business, we closed the Florida office. This office was a legacy of the
SmartSystem ($martSystem) acquisition in 1996. While we continue to support, market
and sell the $martSystem product, in January, we made the decision to reduce
expenses, and leverage our Winnipeg-based support team infrastructure to support our
$martSystem users.

In terms of implementing our technology direction, we brought our team from India to
Winnipeg for a month of training and acclimatization to the North American point-of-sale,
revenue management and retailing environments. The team focused on the re-
development of the Access2Gov product into JAVA, in order to provide Infocorp with the
capability to deliver multiple major implementations.

In summary, our first quarter of 2002 met our goals for revenue, cost control and results
for our customers. Going forward, our goal is to keep this positive momentum growing.
Specifically, our strategy for the remainder of the year is to continue the build-out of our
direct sales and marketing infrastructure, continue introducing upgrades to our existing
software in order to keep pace with market needs, and of course to bring new product
features to market. I have the greatest confidence in our strategy and our team and,
through both, intend to increase shareholder value and ensure the future success of
Infocorp.

On behalf of everyone at Infocorp, thank you for your continued support.




Dwayne Mathers,
Chief Executive Officer
Management Discussion and Analysis

First Quarter of Fiscal 2002 versus First Quarter of Fiscal 2001

The following Management Discussion and Analysis should be read in conjunction with
Infocorp Computer Solutions Ltd. (“the Company”) consolidated financial statements and
accompanying notes for the first quarter of 2002 and 2001 and with the Management
Discussion and Analysis and notes to the consolidated financial statements appearing in
the Annual Report for the fiscal year ended December 31, 2001. This discussion
contains certain forward-looking statements based on current expectations. These
forward-looking statements entail risks and uncertainties that could cause actual results
to differ from those reflected in these forward-looking statements.

Results of Operations

Overview

Infocorp Computer Solutions Ltd. is a provider of cashiering (POS), revenue
management, and retail management systems worldwide. Infocorp’s solutions enable
product and service delivery, workflow automation, and payment transaction processing
through multiple delivery channels, including over-the-counter, Internet, IVR and kiosks.
Infocorp is a publicly traded Canadian company (TSE: INP).

During the first quarter, the Company focused on closing significant contracts in the
government segment, and bringing its JAVA version of Access2Gov to market. The
Company completed its restructuring, and closed the Florida office.

Revenue

First quarter revenue totalled $1.08 million (2001: $553,065) an increase of 95%. During
the quarter, revenue from license fees in the government segment increased to
$693,186 from $167,292 in the same quarter last year. This reflects the signing of the
Digimarc ID Systems contract for the State of Tennessee’s Drivers Licensing System, as
well as follow-on business with IBM in connection with a major U.S. city and follow-on
business with the Province of Manitoba. Retail software license revenue increased to
$223,094 (2001: $118,707). While retail licensing revenue increased significantly,
primarily from our existing customers that opened additional stores in their retail chains,
post contract support decreased by 25% to $162,523 (2001: $224,251). During the
quarter, we completed our restructuring and closed the Florida office. While we continue
to support, market and sell the SmartSystem ($martSystem) product from our Winnipeg-
based support team, a number of the $martSystem customers elected not to renew their
maintenance and support agreements with us.

Margin

After deducting the direct costs of installation which includes hardware, third-party
software, travel, consultants, and other related products and services of $28,765, the
Company’s margin in the first quarter of 2002 was $1.05 million, as compared to
$535,609 in the same period in 2001.
General and Administrative Expenses

General and administrative expenses were $274,445 in the first quarter (2001:
$292,330). Expenses are expected to continue at these levels.

Product Research and Development Expenses

Research and development (R&D) expenses decreased to $234,707 in the first quarter
of 2002 (2001: $461,778). This reflects our strategy to develop a team in India to carry
out the development of our JAVA Access2Gov product, and undertake development of
the Access2Retail product. As future product development will be done primarily off-
shore, R&D expenses are expected to continue at these lower levels.

Sales and Marketing Expenses

Selling and marketing expenses decreased slightly to $224,191 in the first quarter of
2002 (2001: $247,150). The Company remains focused on building a strong, qualified
pipeline from which to generate revenue. Expenses are expected to continue at these
levels.

Post-Contract Services

Post-contract services (PCS) expenses decreased to $56,125 in the first quarter of 2002
(2001: $105,875). This reflects the results of our operations restructuring during the
fourth quarter of 2001, and the closing of the Florida operation in the first quarter of
2002. Expenses are expected to continue at these levels.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

EBIDTA was $260,570, or 24% of revenue, compared to ($571,524) over the same
quarter last year.

Interest

Interest expense for 2002 was $78,361 as compared to $47,907 in 2001, a 64%
increase. The increase represents the interest accrued on the $1.26 million loan from a
major shareholder, and accrued interest on the Western Economic Development
Canada loan.

Amortization

Amortization expense for 2002 was $26,791 as compared to $30,965 in 2001. This
reduction is the result of the amortized software development costs having been fully
written off during 2001.

Net Income

Net income for the first quarter of 2002 was $155,418 ($0.01 per share) as compared to
a loss of $650,396 ($0.05 per share) during the first quarter of 2001.
Liquidity and Capital Resources

During the first quarter of 2002, operating activities generated $202,449 compared to
using ($13,588) of cash over the same period in 2001. The Company has been able to
successfully renegotiate the payment terms of its term debt and, based on contracts
obtained, expects to be able to operate with positive cash flow in 2002 and obtain
financing as required.

Outlook

During the quarter, Infocorp announced a contract with Digimarc ID systems to supply its
Access2Gov product for the State of Tennessee’s drivers licensing system. In addition,
the Company announced a contract with Covansys Corporation to supply its
Access2Gov product for the State of Tennessee’s motor vehicle titling and registration
system. These are major contracts that in total will generate in excess of $2 million over
the course of the year. Additionally, the Company expects to announce further contract
wins over the next few months.

Forward Looking Statements

The statements in this discussion that are not historical statements are “forward-looking
statements” similar to others that the Company has made in the past and may make in
the future, including statements regarding future operating performance, short and long-
term revenue and earnings growth, backlog and the value of new contract signings, and
industry growth rates and its performance relative thereto. Any forward-looking
statements may rely on a number of assumptions concerning future events and be
subject to a number of uncertainties and other factors, many of which are outside the
Company’s control, which could cause actual results to differ materially from such
statements.

These include, but are not limited to, the Company’s ability to (i) successfully develop
additional products and services and new applications for its existing products and
otherwise respond to rapid changes in technology, (ii) successfully compete in its
industry for customers and developers and other personnel with expertise in information
technology, (iii) successfully identify and consummate acquisitions on favourable terms
and integrate acquired businesses, (iv) successfully manage its growth and changing
business. The Company is not obligated to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise.
Reference should also be made to the most recent Annual Report for a description of
some of these uncertainties and other factors.
                   Infocorp Computer Solutions Ltd.
                             Consolidated Interim Balance Sheet
                                        (unaudited)
                                                                                 As At
                                                                March 31, 2002      December 31, 2001
                                                Assets
Current
    Cash                                                                147,164                27,953
    Accounts receivable                                                 558,211                88,935
    Prepaid expenses and sundry assets                                   46,777                37,409
                                                                        752,152               154,297

    CAPITAL ASSETS                                                      515,591               542,382
                                                                      1,267,743               696,679
                                               Liabilities
Current
    Accounts payable and accrued liabilities                            876,912               728,165
    Deferred Revenue                                                    695,392               341,602
    Current portion of long-term debt                                    72,966                77,528
                                                                      1,645,270             1,147,295

    LONG-TERM DEBT                                                    3,387,831             3,477,910
    LEASE INDUCEMENT                                                    136,293               139,944
                                                                      5,169,394             4,765,149
                                     Shareholders' Deficiency
    Capital Stock                                                     6,537,166             6,537,166
    Deficit                                                        (10,462,672)          (10,618,090)
    Cumulative Foreign exchange translation adjustment                   23,855                12,454
                                                                    (3,901,651)           (4,068,470)
                                                                      1,267,743               696,679




The accompanying notes are an integral part of these consolidated financial statements
                                   Infocorp Computer Solutions Ltd.
                                Consolidated Interim Statement of Deficit
                                               (unaudited)


For the Three Months Ended                                           March 31, 2002    March 31, 2001


Deficit - Beginning of period                                           (10,618,090)      (9,349,506)


Net Income / (Loss)                                                         155,418         (650,396)


Deficit - End of period                                                 (10,462,672)      (9,999,902)




The accompanying notes are an integral part of these consolidated financial statements
                    Infocorp Computer Solutions Ltd.
                        Consolidated Interim Statement of Operations
                                         (unaudited)
                                                              Three Months Ended
                                                           March 31, 2002     March 31, 2001
Revenue
         License fees and related services
            E-Government                                         693,186            167,292
            Retail                                               223,094            118,707
         Post-Contract Support                                   162,523            224,251
         Other                                                            -          42,815
                                                                1,078,803           553,065


         Direct Costs                                             28,765             17,456


Margin                                                          1,050,038           535,609


Expenses
         General and administrative                              274,445            292,330
         Product research and development                        234,707            461,778
         Sales and marketing                                     224,191            247,150
         Post-Contract support                                    56,125            105,875
                                                                 789,468           1,107,133


Earnings (Loss) before Interest and Amortization                 260,570           (571,524)


         Interest                                                 78,361             47,907
         Amortization                                             26,791             30,965


Net Income (Loss)                                                155,418           (650,396)


Earnings (Loss) per Share                                              0.01           (0.05)




The accompanying notes are an integral part of these consolidated financial statements
                       Infocorp Computer Solutions Ltd.
                             Consolidated Interim Statements of Cash Flow

Three Months Ended                                                    March 31, 2002     March 31, 2001


 Cash Flow From Operating Activities
          Net Income                                                     155,418           (650,396)
          Items not affecting cash:
              Amortization of Capital Assets                               26,791           229,726
              Accounts Receivable                                        (469,276)          546,514
              Prepaids                                                      (9,368)           26,358
              Accounts payable and Accrued Liabilities                    148,745            (84,086)
              Deferred Revenue                                            353,791            (81,704)
              Lease Inducement                                              (3,651)                -
                                                                          202,450            (13,588)

 Cash Flow From Investing Activities
          Purchase of Capital Assets                                             -         (109,412)
          Total Foreign exchange translation adjustment                     11,401           (3,890)
                                                                            11,401         (113,302)
 Cash Flow From Financing Activities
          Change in Long Term Debt                                          (94,640)          (7,471)
          Issuance of Capital Stock                                               -          19,000
                                                                            (94,640)         11,529

Increase / (Decrease) in cash                                            119,211           (115,361)

Cash - Beginning of Period                                                  27,953          234,373

Cash - End of Period                                                     147,164            119,012




The accompanying notes are an integral part of these consolidated financial statements
                         Infocorp Computer Solutions Ltd.
                                 Notes to Interim Consolidated Financial Statements
                                                   March 31, 2002
                                                  (Unaudited)


     1. Significant accounting Policies

          The Company’s accounting policies are in accordance with accounting principles
          generally accepted in Canada and are consistent with those outlined in the
          Company’s 2001 annual audited financial statements except as noted below.
          These consolidated interim financial statements do not include all disclosures
          normally provided in annual financial statements and accordingly should be read
          in conjunction with the Company’s audited financial statements for the year
          ended December 31, 2001. In management’s opinion, the unaudited financial
          information includes all adjustments necessary to present fairly such information.
          Interim results are not necessarily indicative of the results expected for the fiscal
          year. Certain comparative figures have been reclassified to conform to the
          current year’s presentation.

     2. Comparative figures

          Certain comparative disclosures have been changed to conform with financial
          statement presentation adopted in the current year.

     3. Segmented Information

          The Company has two operating segments in 2002 and 2001 whose operating
          results were regularly reviewed by the management. The business of the
          Company is carried on in the industry segments of the development,
          manufacture, sale, maintenance and support of point-of-sale and point-of-service
          software for retail and government applications. The segmented information for
          each segment is as follows:

                                                       For the Three Months Ended March 31
                                                    2002                                     2001


                                  E-Government      Retail       Total     E-Government      Retail      Total


Assets                                                       $ 1,267,743                              $ 696,679
Segmented Revenue                  $    758,431 $    320,372 $ 1,078,803 $     202,539 $      350,526 $ 553,065
Segmented Profit                   $    427,722 $    107,293 $   535,015 $     (160,361) $   (118,833) $ (279,194)


General & Administrative Costs                                   274,445                                 292,330
Interest, Amortization
& Depreciation                                                   105,152                                  78,872


Income from Operations                                           155,418                                 (650,396)
               Infocorp Computer Solutions Ltd.
                                               Shareholder Information




                  Trading Activity for the first and second Quarters on the Toronto Stock Exchange (INP)


                                      High                           Low                       Close       Volume
1st Qtr                           $     0.40                     $    0.22                    $ 0.22       194,064
Year to Date                      $     0.40                     $    0.22                    $ 0.22       194,064
                                 Investor Relations

            Dave Mason                                         P. Natasha Bharratt
     The Equipcom Group Inc.                            Director, Investor Relationships
     Tel: 1-416-815-0700 x237                             Tel: 1-416-787-9884 x 2517
       Fax: 1-416-815-0080                                    Fax: 1-416-789-9078
Email: dmason@equicomgroup.com                        Email: natasha.bharratt@slmsoft.com

				
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