Welcome!

Microsoft Cloud Authors: Elizabeth White, Liz McMillan, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

Inscape Announces Second Quarter Results

HOLLAND LANDING, ONTARIO -- (Marketwire) -- 12/13/12 -- Inscape (TSX:INQ) today announced financial results for its second quarter ended October 31, 2012.

The second quarter of fiscal 2013 ended with a modest profit, compared with a net loss of $0.2 million or 2 cents per share in the same quarter of last year. Despite a 16.7% drop in the sales comparing to the same quarter of last year, the current quarter benefited from favourable product mix, lower commodity prices and continued improvement in production efficiencies.

On a year-to-date basis, the six-month period ended October 31, 2012 had a net income of $0.1 million or 1 cent per share, compared to a net loss of $1.9 million or 13 cents per share a year earlier. Year-to-date sales were 4.6% lower than the same period of last year. The significant increase in net income despite a lower sales volume is attributable to the higher gross profit and lower selling, general and administrative expenses ("SG&A") as discussed below.

"Our profitability situation has improved over last year," said Rod Turgeon, President and Chief Executive Officer. "While we are disappointed with our revenue performance for the quarter, improved manufacturing performance and expense management, as well as a strong product mix have contributed to the bottom line."

The decrease in sales was mainly caused by a drop in project volume during the quarter. The adverse impact of lower volume was partially abated by higher realized selling prices.

Gross margin percentage in the second quarter of fiscal year 2013 increased 2.9 points from last year's 25.9% to the current quarter's 28.8%. Year-to-date gross profit was higher than last year by $1.9 million. Gross margin percentage increased 5.9 points from 21.2% to 27.1%. The higher gross margin percentages were attributable to favourable product mix, lower commodity prices, more efficient production processes and higher realized net selling prices. The gains were partially reduced by unfavourable overhead absorption due to lower volume.

"We have several new products in our pipeline that will enhance our market reach and expect our sales and marketing initiatives to help improve our topline performance in future quarters," said Mr. Turgeon. "We are building a strong team and have made progress on improving our operational performance. We remain committed to investing in our growth and are optimistic about our future."

SG&A in the second quarter of fiscal year 2013 were $5.1 million or 28.1% of sales, compared to $5.9 million or 27.2% of sales in the same quarter of last year. The decrease of $0.8 million in the quarter's SG&A consisted of $0.3 million variable selling expenses and $0.5 million of lower administrative and discretionary expenditures. The lower variable selling expense was due to lower sales volume and a higher proportion of corporate projects. The drop in overheads included a $0.26 million charge in last year for the settlement of a wound-up defined benefit pension plan and reduced discretionary expenses.

Year-to-date SG&A of $10.4 million were $26.4% of sales, compared to $11.6 million or 28.2% of sales in the previous fiscal. The total expense was lower by $1.3 million consisting of $0.4 million variable selling expenses and $0.9 million overheads. In addition to the above-mentioned expense items, share-based compensation during the six-month period was $0.2 million lower than the same period of last year.

With the Company's commitment to investing in selling capability, it is expected that SG&A for the remaining part of this fiscal year will be higher than the run-rate for the first six-month period.

At the end of the second quarter of fiscal year 2013, the Company was debt-free with cash and cash equivalents at $8.0 million and liquid short-term investments at $10.2 million.


                                                                            
                          Inscape Corporation                               
           Summary of Interim Consolidated Financial Results                
                 (Unaudited) (in thousands except EPS)                      
                                                                            
                                   Three Months Ended October 31,           
                                            2012          2011       Change 
----------------------------------------------------------------------------
                                                                            
Sales                                $    18,210   $    21,867        -16.7%
----------------------------------------------------------------------------
Gross profit                               5,242         5,669         -7.5%
Selling, general & administrative                                           
 expenses                                  5,119         5,951        -14.0%
Unrealized loss (gain) on foreign                                           
 exchange                                     18          (483)             
Decrease in fair value of                                                   
 derivative assets                           228           735              
Investment income                           (102)         (157)             
----------------------------------------------------------------------------
Loss before taxes                            (21)         (377)             
Income tax recovery                          (91)         (133)             
----------------------------------------------------------------------------
Net income (loss)                    $        70   $      (244)             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic and diluted earnings per                                              
 share                               $         -   $     (0.02)             
                                                                            
Weighted average number of shares                                           
 (in thousands)                                                             
for basic EPS calculation                 14,376        14,320              
for diluted EPS calculation               14,461        14,443              
                                                                            
                                                                            
                                    Six Months Ended October 31,            
                                            2012          2011       Change 
----------------------------------------------------------------------------
                                                                            
Sales                                $    39,277   $    41,192         -4.6%
----------------------------------------------------------------------------
Gross profit                              10,644         8,730         21.9%
Selling, general & administrative                                           
 expenses                                 10,452        11,636        -10.2%
Unrealized gain on foreign                                                  
 exchange                                    (24)         (399)             
Decrease in fair value of                                                   
 derivative assets                           405           611              
Investment income                           (170)         (273)             
----------------------------------------------------------------------------
Loss before taxes                            (19)       (2,845)             
Income tax recovery                         (155)         (911)             
----------------------------------------------------------------------------
Net income (loss)                    $       136   $    (1,934)             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic and diluted earnings per                                              
 share                               $      0.01   $     (0.13)             
                                                                            
Weighted average number of shares                                           
 (in thousands)                                                             
for basic EPS calculation                 14,377        14,535              
for diluted EPS calculation               14,434        14,664              

Financial Statements

http://media3.marketwire.com/docs/INQ-FS.pdf

Second Quarter Call Details

Inscape will host a conference call at 8:30 a.m. on Friday, December 14, 2012 to discuss the Company's quarterly results. To participate, please call 1-800-272-9104. A replay of the conference call will also be available from Friday, December 14, 2012 after 10:30 a.m. until midnight on December 21, 2012. To access the rebroadcast, please dial 1-800-558-5253 (Reservation Number 21611531).

Forward-looking Statements

Certain of the above statements are forward-looking statements that involve risks and uncertainties. Actual results could differ materially as a result of many factors including, but not limited to, further changes in market conditions and changes or delays in anticipated product demand. In addition, future results may also differ materially as a result of many factors, including: fluctuations in the Company's operating results due to product demand arising from competitive and general economic and business conditions in North America; length of sales cycles; significant fluctuations in international exchange rates, particularly the U.S. dollar exchange rate; restrictions in access to the U.S. market; changes in the Company's markets, including technology changes and competitive new product introductions; pricing pressures; dependence on key personnel; and other factors set forth in the Company's Ontario Securities Commission reports and filings.

ABOUT INSCAPE

Inscape makes smart workspaces. For over a century, we have collaborated with our clients to provide customized solutions based on their individual needs. Our meticulously engineered system, storage and wall products provide unparalleled flexibility to create unique applications at a lower cost of ownership. Easy reconfiguration and seamless integration with other products means our smart applications will work today and tomorrow. And they look fabulous.

For more information, visit www.inscapesolutions.com.

Contacts:
Inscape
Kent Smallwood CA
Chief Financial Officer
905 836 7676
905 836 5037 (FAX)
www.inscapesolutions.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...