Q3 1999, Revenues Up 50 Percent Over Q2 1999
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 7, 1999--
Intrinsyc (VSE:ICS.) today announced operating results for the third
quarter of fiscal 1999.
Revenues during the third quarter of fiscal 1999 amounted to
$806,182 up 621 percent over the $111,818 achieved during fiscal Q3
1998, and up 50 percent over the $537,865 achieved during fiscal Q2
1999. Year-to-date sales were $1,406,882 compared to $140,521 for the
corresponding period of 1998 -- a 1000 percent increase. Consulting
services relating to the design-in of the Company's licensable
software components accounted for approximately 90 percent of revenue,
with other revenue growth coming from development kit sales and
production run-time licenses. As the market for Intrinsyc's products
grow and our technology is deployed in more Information Appliances,
the mix of revenues is expected to trend towards an increasing
percentage of run-time licensing revenue.
Total operating costs this quarter increased by $284,523 over the
previous quarter to $1,237,432, as virtually all aspects of operations
were expanded to support sales, marketing, and expected growth.
Administration costs were up $207,799 from last quarter. Of this
increase $72,107 salary related, $26,640 legal, and $15,634 investor
relations. Last quarter also contained a reversal of $37,619 relating
to merger costs. Sales and Marketing costs were up $230,195 from last
quarter. Of this increase $48,888 salary related, $28,604 outside
commission, $32,697 travel related, and $83,554 advertising (the
second quarter contained reversal of $52,246 relating to year-end
adjustments). Research and Development costs were up $173,601 from
last quarter, due to $171,390 increase of salary related costs.
Cash and accounts receivable balance at May 31, 1999 was
$1,206,312. Capital assets of $76,835 (net of landlord reimbursement)
were purchased during the quarter, as a requirement of the hiring of
new employees and the office move. $270,240 was received during the
quarter from issuance of shares as a result the exercising of stock
options. The Company has no debt.
Operating loss for the quarter increased to $431,250 from $87,973
in the second quarter ($0.02 per share and $0.005 per share,
respectively). Year-to-date loss per share decreased to $843,186 from
$2,452,749 for the same period last year ($0.02 per share and $0.17
per share, respectively).
"1999 is Intrinsyc's first year of significant revenue
generation, after an intensive R&D cycle" says Derek Spratt,
Intrinsyc's President and CEO. "As our revenues grow, we're
demonstrating that our market focus on industrial automation,
point-of-sale and mobile computing is paying off."
Intrinsyc has also now finalized the strategic alliance with
BSQUARE Corporation announced on April 19th. This significant
partnership -- where BSQUARE will distribute Intrinsyc's tools and
technologies -- creates a new channel of distribution for Intrinsyc's
products and services. BSQUARE will be a master systems integrator in
the industrial automation segment and will deliver fast, turnkey
solutions to manufacturers of Information Appliances based on Windows
CE, an enormous market. As part of the agreement, BSQUARE has
exclusive access to Intrinsyc's technologies in specified segments of
the Industrial Automation market. The exclusivity is dependent on
BSQUARE meeting certain performance criteria including the generation
of a minimum amount of license fees for Intrinsyc.
A Third Quarter Report and detailed Financial Statements will be
posted on Intrinsyc's website today. There will also be a conference
call on Thursday, July 8, 1999 at 9:30 a.m. Pacific (12:30 p.m.
Eastern) to discuss the results. People wishing to participate should
call (toll-free) 877/415-4919 five minutes prior to the scheduled
Founded in 1992 and based in Vancouver, BC, Intrinsyc is at the
forefront of the emerging Information Appliance and Smart Device
market -- small, embedded computers hidden in everyday things such as
cars and VCRs and in commercial and industrial products such as
vending machines and robotic arms. Intrinsyc develops technologies
that enable its customers to rapidly build highly reliable,
Web-enabled Windows CE devices for the growing market segments of
industrial automation, point-of-sale and mobile computing. Intrinsyc's
core strength is accelerating its customers' time-to-market in the
highly competitive embedded systems space.
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