Welcome!

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.

Latest Stories
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze 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. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
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 software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...