BRIGHTON, England, June 2, 2003 (PRIMEZONE) -- E-learning solutions provider Futuremedia Plc (Nasdaq:FMDAY) today announced preliminary financial results for the fiscal year and 3-month periods ending April 30, 2003.
For the fiscal year ending April 30, 2003, the Company reported revenues of 1,342,000 Pounds ($2,147,000). This represents an increase of 431,000 Pounds ($689,500) or some 67% when compared with full-year fiscal 2002.
The Company has reduced the operating loss to 915,000 Pounds ($1,464,000), an improvement of 1,113,000 Pounds or 45% compared with 2002.
For the three-month period ending April 30, 2003, the Company reported revenues of 382,000 Pounds ($611,000), an increase of 137,000 Pounds compared to Q4 2002. The operating loss for the quarter was 243,000 Pounds ($389,000), representing an improvement of 146,000 Pounds compared to Q4 2002.
Mats Johansson, CEO of Futuremedia, said: "It is now becoming clear that the stringent measures we have taken over the last 18 months together with a total focus on providing our customers with a complete service are paying off. Our revenue and gross margin trends are both firmly upward, and losses are trimmed further. The results of fiscal 2003 put us on a solid footing for the future and we enter our new fiscal year with over 1,044,000 Pounds ($1,670,000) in orders on hand and a record prospect pipeline. During this last quarter we have also undertaken the necessary actions to improve our balance sheet. We have contracted for the sales of non-productive real estate, which will reduce our debt position to nil on final completion, and have successfully concluded an equity financing exercise -- at a price above market -- in which both existing and new investors participated. At the same time, we have managed to conclude two deals that we believe will contribute positively as we now start to expand our business in Europe: the acquisition of 29.8% of the equity of Luvit of Sweden, and the acquisition of Aktivna in the UK. However, we must continue to keep very tight controls on costs."
Jan Vandamme, Chairman of the Board of Futuremedia, added "While it is true we still see very scant evidence of increased corporate IT spending, and the economic and political risks remain high, it is clear that our value proposition, allowing large companies to keep their workforce up-to-date and fully trained whilst reducing associated HR costs, has left our order book well filled. Our strategy is firmly anchored in expansion in the UK and Scandinavia, the two largest eLearning markets in Europe. The Board and myself are also very pleased with the improvements in the balance sheet, especially as shareholders' equity has virtually tripled."
FUTUREMEDIA PLC AND SUBSIDIARIES Q3 2003
SUMMARY RESULTS (unaudited)
In '000, except where specified
Quarter to Quarter to April 31, 2003 April 31, 2002
--All Figures in Pounds unless otherwise stated
Quarter to Quarter to April 31, 2003 April 31, 2002
Revenues 382 ($611) 245
Operating Costs 625 ($1,000) 534
Operating Loss 243 ($389) 289
Net Loss 249 ($398) 283
Weighted shares 51,358,101 29,648,374
Loss per Share 0.005 ($0.008) 0.009
FUTUREMEDIA PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in 000's except share data)
Year ended April 30,
2003 2003 2002 2001
$'000 GBP'000 GBP'000 GBP'000
Net sales 2,147 1,342 911 743
Cost of sales 1,818 1,136 1,536 1,789
Gross Profit/(loss) 329 206 (625) (1,046)
Operating expenses
Sales and marketing 146 91 65 558
General and administrative 1,577 986 1,175 2,051
Facilities expenses 70 44 63 157
Total operating expenses 1,793 1,121 1,403 2,766
Operating loss (1,464) (915) (2,028) (3,812)
Loss on sale of Assets (189) (118) -- --
Interest income 2 1 32 120
Interest expense (77) (48) (29) (36)
Foreign currency gains -- -- 13 31
Net loss (1,728) (1,080) (2,012) (3,697)
Loss per share
basic and diluted (3.72)c (2.33)p (6.60)p (12.71)p
Weighted average
shares
Outstanding 46,414,194 46,414,194 30,501,619 29,098,429
FUTUREMEDIA PLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(unaudited)
April 30,
2003 2003 2002
($'000) (GBP'000) (GBP'000)
ASSETS
Current assets
Cash and cash equivalents 639 437 445
Accounts receivable,
less allowance of GBP Nil
(($Nil) in 2003 and
GBP59,000 in 2002 for
doubtful accounts) 485 303 112
Amounts recoverable on
contracts 70 44 15
Other current assets 407 254 3
Inventories - finished goods 3 2 2
Prepaid expenses 631 394 393
Total current assets 2,295 1,434 970
Property held for Sale 719 450 908
Property and equipment
Land and buildings -- -- 59
Audio visual and computer
equipment 681 426 414
Office equipment 114 71 71
795 497 544
Accumulated depreciation 669 418 386
126 79 158
Other assets
Intangible assets and Goodwill 447 279 53
Investments 1,510 944 --
Total assets 5,097 3,186 2,089
FUTUREMEDIA PLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(unaudited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
April 30,
2003 2003 2002
($'000) (GBP'000) (GBP'000)
Current liabilities
Fees received in advance 714 446 696
Accounts Payable 744 465 196
Other taxes and
social security costs 149 93 82
Other accounts payable 176 110 19
Other accrued expenses 302 189 119
Convertible Loan -- -- 410
Bank Mortgage 480 300 --
Total current
liabilities 2,565 1,603 1,522
Long-term debt
less current portion -- -- --
Total liabilities 2,565 1,603 1,522
Shareholders' equity
Ordinary shares of 1 1/9p each
Authorized - 125,000,000
Issued and outstanding-
78,194,456 at April 30, 2003,
29,648,374 at April 30, 2001 1,387 867 329
Shares to be issued
10,346,979 at April 30, 2002 -- -- 506
Preference shares of 2p each
Authorized - 2,000,000
None issued -- -- --
Additional paid-in capital 27,075 16,924 14,822
Retained deficit (25,762) (16,103) (15,023)
Other comprehensive loss-
cumulative translation
adjustment (168) (105) (67)
Total shareholders' equity 2,532 1,538 567
Total liabilities and
shareholders' equity 5,097 3,186 2,089
About Futuremedia PLC
Futuremedia plc (est. 1983) is a Solutions Provider in the growing e-learning market with 20 years experience in the interactive media field supplying products and services to industrial and commercial business sectors and government, mainly in the UK and Continental Europe.
The Company has a proven track record in providing knowledge and training via Solstra, its proprietary Learning Management System which in its largest application has a capacity for 240,000 users.
Incorporated within its principal operation headquartered in the UK, Futuremedia's Professional Services team identify and specify client requirements and Futuremedia's Content Studio then design and develop custom content for clients' needs. The Futuremedia Library unit specifies and administers any content required from its comprehensive range of third party products. The Solstra Team deploy Futuremedia's own Learning Management System enabling training to be rapidly administered, delivered and progress tracked.
Futuremedia's customers include Royal Mail, Syngenta, BUPA and BT. Training content from partners SmartForce, Centra Software, SkillSoft and NETg is supplied and supported.
Futuremedia can be found on the Web at www.futuremedia.co.uk .
This earnings release can be found online at http://www.huginonline.com/try/plsql/pressreleases.queryview?P_IDENTIFIER=906128&Z_CHK=31547&p_la=5
"Safe Harbor" Statement under Section 21E of the Securities Exchange Act of 1934 This press release contains forward-looking statements related to future results and speaks only of the Company's expectations as of the date hereof. Such statements include discussions concerning the Company's financial performance and the performance of its products. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from expectations. The risks and uncertainties include the early stage of the e-learning market, the management of growth, the ability of the Company to continue to attract new funds if and when needed, the ability of the Company to develop and successfully market new products, the ability of the Company to integrate acquisitions, the ability of the Company to maintain compliance with NASDAQ's continued listing regulations, rapid technological change and competition, and other factors detailed in the Company's filings with the US Securities and Exchange Commission. The Company expressly disclaims any obligation to release publicly any updates or revisions to any such statement to reflect any change in expectations or in information on which any such statement is based.
All product names and trademarks mentioned herein are trademarks of Futuremedia or their respective owners.