Welcome!

Microsoft Cloud Authors: David H Deans, Pat Romanski, Janakiram MSV, Jnan Dash, Andreas Grabner

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
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often un...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...