Q3 1999, Revenues Up 50 Percent Over Q2 1999 Business Editors 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 time. About Intrinsyc 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.
INTRINSYC REPORTS STRONG REVENUE GROWTH IN
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