Sales for the quarter ended March 31, 2001 were $50.6 million, representing a decrease of 11% compared to the quarter ended March 31, 2000. The decrease in sales compared to 2000 is attributed to current economic weakness and uncertainty being experienced, particularly in North America, which the Company believes has led to deferred purchasing decisions by its customers.
Adjusted net income was $3.6 million for the quarter ended March 31, 2001 compared to $8.6 million for the quarter ended March 31, 2000. Adjusted net income for both quarters exclude the amortization of intangibles, net of taxes.
Adjusted diluted earnings per share (based on adjusted net income) were $0.19 for the quarter ended March 31, 2001, compared to $0.47 in the quarter ended March 31, 2000. The current period earnings per share is based on a diluted weighted average number of shares of 18.8 million, compared to 18.4 million for the same period last year.
Expenses for the quarter were $40.7 million, compared to $37.4 million for the quarter ended March 31, 2000, excluding amortization of the intangibles. The increase principally relates to higher sales and marketing costs as the Company increased its sales force and marketing efforts to grow its EIP business.
After amortization of intangibles, net of tax, the Company reported a net loss of $1.9 million and diluted loss per share of $0.11 for the quarter ended March 31, 2001, compared to net income of $1.7 million and diluted earnings per share of $0.09 for the quarter March 31, 2000.
Sales for the six months ended March 31, 2001 were $110.9 million, representing a 1% decrease compared to the six months ended March 31, 2000. Adjusted net income for the six months was $11.2 million compared to $15.0 million for the six months ended March 31, 2000. Adjusted diluted earnings per share, based on adjusted net income, was $0.60 compared to $0.88 for the similar period in the previous year.
Total assets as at March 31, 2001 were $373 million, compared to $369 million at March 31, 2000. The Company’s cash position remains very strong at $99 million as at March 31, 2001, up from $95 million as at December 31, 2000 and $66 million as at March 31, 2000.
In accordance with Canadian generally accepted accounting principles, the Company reported a net loss of $2.7 million and fully diluted loss per share of $0.15 for the quarter ended March 31, 2001, compared to a net loss of $1.5 million and fully diluted loss per share of $0.09 in the second quarter of 2000. For the six months ended March 31, 2001, the Company reported net income of $4.5 million and fully diluted earnings per share of $0.24, compared to a net loss of $6.5 million and fully diluted loss per share of $0.40 for the comparable period of 2000.
