News

Frisco Bay announces 2nd quarter results

March 6, 2002

MONTREAL -- Canadian ATM provider Frisco Bay Industries Ltd.(NASDAQ : FBAY) announced the results of its second quarter ended July 31, 2000. Revenues for the quarter were $8,441,954 in Canadian dollars as compared to $9,260,185 for the same period last year, a decline of $818,231 or 8.8 percent. Earnings for the quarter showed a loss of $51,401 or 2 cents per share as compared to $541,731 or 24 cents per share for the same period last year.

For the six-month period, revenues were $17,085,244 versus $18,454,837 last year, a decrease of $1,369,593 or 7.5 percent. Earnings for the period showed a loss of $248,935 or (11 cents per share versus earnings of $793,750, or 36 cents per share last year.

The company partially attributed the reduction in revenues for the quarter and the six-month period to a shift from selling ATMs to owning and placing the units, thereby resulting in a higher ``per transaction' fee over the customary five-year contract. This shift amounted to approximately $570,000 for the quarter, $670,000 for the first half. According to the company, it will result in a significant improvement in the company's future recurring revenue stream and profitability.

Also, client internal organization issues on a long-term project caused temporary installation setbacks that ultimately resulted in revenues being delayed to future quarters, namely $600,000 for the quarter, $1,030,000 for the first half.

Had these anomalies not occurred, the company would have realized an increase in revenues of approximately $280,000 for the quarter, $330,000 for the first half.