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iMagicTV
news release
All amounts in U.S. Dollars
iMagicTV Reports First Quarter Financial Results
SAINT JOHN, NEW BRUNSWICK - June 27, 2001 - iMagicTV (Nasdaq: IMTV and TSE:
IMT), a provider of software products that allow telephone companies and other
service providers to deliver multi-channel television and interactive media
services, today announced its financial results for the first fiscal quarter of
FY2002, ended May 31, 2001.
Total first-quarter revenues were $1.7 million compared with $731,000 in
the same period last fiscal year. This represents a $1.0 million increase over
revenues of $672,000, excluding equipment sales, in the same period last fiscal
year, and a decrease of $1.5 million from $3.2 million in the previous fiscal
quarter, which is consistent with expectations.
Net loss, excluding non-cash stock-based compensation charges and
depreciation, for the first quarter was $4.8 million, or $0.20 per basic share,
compared to a net loss of $2.4 million, or $0.14 per basic share in the first
quarter of fiscal year 2001.
"We are confident that the industry will successfully emerge from this
downturn and, in fact, are seeing increased activity at the early stages of
market development. We have nonetheless followed a very cautious, disciplined
path this quarter which I feel has enabled us to retain a position of strength,"
said Marcel LeBrun, president and CEO, iMagicTV. "We will continue to focus on
our key, target customers to give them all the tools they need to build a solid
business in the delivery of video and other multi-media services to their
subscribers."
About iMagicTV
iMagicTV (Nasdaq:IMTV and TSE:IMT) provides software products and related
services that enable telephone companies and other service providers to deliver
multi-channel digital television and interactive media services to their
subscribers over a broadband network infrastructure. iMagicTV's software can be
deployed over high-speed broadband networks including ADSL, VDSL, wireless,
Ethernet and Fiber to the Home (FTTH) technologies.
Incorporated in 1997, iMagicTV maintains its global headquarters in Saint
John, New Brunswick, Canada, its European headquarters in Cambridge, UK and its
Asia Pacific headquarters in Singapore. The Company also has offices located
throughout the United States in Raleigh, NC, Atlanta, GA, Dallas, TX and Denver,
CO. For more information, visit www.imagictv.com.
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IMAGICTV INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts)
Three Months Ended
May 31, May 31,
-------------------------
2001 2000
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(unaudited) (unaudited)
Revenues:
License fees $ 522 $ 512
Royalty fees 82 23
Services 1,046 137
Equipment - 59
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1,650 731
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Cost of Revenues:
Services 922 298
Equipment - 58
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Total cost of revenues 922 356
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Gross Profit 728 375
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Operating expenses:
Sales and marketing 2,735 1,186
Research and development 2,005 1,402
General and administrative 1,340 323
Depreciation 436 221
Stock-based compensation 192 16
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Total operating expenses 6,708 3,148
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Loss from operations (5,980) (2,773)
Interest income, net 666 75
Foreign exchange gain (loss), net 15 24
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Loss before provision for income taxes (5,299) (2,674)
Provision for income taxes (139) (11)
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Net loss for the period $ (5,438) $ (2,685)
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Basic and diluted net loss per share $ (0.22) $ (0.15)
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Weighted average number of shares used in
computing basic and diluted net loss per
share (000s) 24,596 17,552
Adjusted Net loss
Net loss for the period $ (5,438) $ (2,685)
Add back of non-cash based charges:
Stock-based compensation charges 192 16
Depreciation 436 221
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Adjusted net loss $ (4,810) $ (2,448)
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Adjusted basic and diluted net loss per share $ (0.20) $ (0.14)
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IMAGICTV INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
May 31, February 28,
2001 2001
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(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 19,420 $ 1,332
Short-term investments 36,877 59,428
Accounts receivable, trade, net of allowance of $500
(February 28, 2001 - nil) 2,247 5,680
Installments receivable 587 705
Inventory 284 295
Prepaid expenses, deposits and other receivables 1,282 1,436
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Total current assets 60,697 68,876
Capital assets 3,181 2,970
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Total assets $ 63,878 $ 71,846
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 418 $ 1,055
Accrued liabilities 2,061 3,823
Deferred revenue and customer deposits 881 1,119
Current portion of long-term debt 71 72
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Total current liabilities 3,431 6,069
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Long-term debt 1,563 1,577
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Shareholders' equity:
Authorized:
Unlimited common shares, no par value
Unlimited preferred shares, no par value
Issued and outstanding:
24,598,442 Common Shares
(February 28, 2001 - 24,592,624) 87,512 87,678
Reporting currency translation adjustments (526) (526)
Deferred stock-based compensation (2,382) (2,670)
Accumulated deficit (25,720) (20,282)
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Total shareholders' equity 58,884 64,200
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Total liabilities and shareholders' equity $ 63,878 $ 71,846
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-30-
Cautionary Note Regarding Forward-looking Statements Under the Private
Securities Litigation Reform Act of 1995: Information in this release that
involves iMagicTV's projections, expectations, beliefs, hopes, plans, intentions
or strategies regarding the future are forward-looking statements that involve
risks and uncertainties. These statements include statements about iMagicTV's
strategies in the marketplace, its market position and its relationship with
customers. All forward-looking statements included in this release are based
upon information available to iMagicTV as of the date of the release, and we
assume no obligation to update any such forward-looking statement. These
statements are not guarantees of future performance and actual results could
differ materially from our current expectations. These and other factors are
risks associated with our business that may affect our operating results, which
are discussed in the Company's filings with the Securities and Exchange
Commission (SEC).
NOTE TO MEDIA AND ANALYSTS:
Media and analysts are invited to participate in a conference call to review
iMagicTV's FY2002 first quarter financial results.
Time: Wednesday, June 27, 2001 - 4:30 pm (Eastern Time)
To participate in this conference call, please call the following approximately
five minutes before the call (4:25 pm Eastern Time):
From Canada and the U.S., outside Toronto: 1- 800-273-9672
From Toronto or outside Canada and the U.S.: 416-695-5806
If you experience any problems during the call or reaching the numbers above,
please call
Darome Teleconferencing at 1-800-268-9072 or 416-695-6740.
You can also access the conference call via an audio Web cast by visiting the
following link:
http://webevents.broadcast.com/financecalls/event/index.asp?EarningsID=2096
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If you are unable to join the conference call, Instant Replay will be available
until midnight on July 4, 2001. To access Instant Replay, please call: 1-800-
408-3053 or 416-695-5800, Pass Code: 798380
Investor Relations Contact:
Tracy Torena
iMagicTV
(214) 346-2921
ttorena@imagictv.com
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Media Contact:
Donna Gates
iMagicTV
(781) 647-4758
dgates@imagictv.com
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