N@N

Hemisphere GPS Reports Growth in Second Quarter

^{Published on 2010-08-10 03:40:54 - Market Wire}
 

 Measurement FX Reporting Currency Rate Currency Mar 31, 2009 Cdn$22.6 million $1.2602 US$17.9 million Jun 30, 2009 Cdn$21.6 million $1.1625 US$18.6 million Sep 30, 2009 Cdn$20.7 million $1.0722 US$19.3 million Dec 31, 2009 Cdn$18.6 million $1.0466 US$17.8 million Mar 31, 2010 Cdn$17.7 million $1.0156 US$17.4 million Jun 30, 2010 Cdn$16.4 million $1.0606 US$15.5 million 

 - During the second quarter Hemisphere GPS began full commercial shipments of Outback eDriveX(TM) auto-steering system, which delivers a new level of precision steering and control performance opening up new market segments for the Company's products. eDriveX steers more demanding farming practices including high-precision planting, strip tilling and bedding, requiring centimeter-level accuracy at a wide range of speeds. End-user feedback on eDriveX has been very positive. - Hemisphere GPS launched new software that allows users to configure and operate Outback AutoMate from the Outback S3 user interface. Users can now configure AutoMate features, operate AutoMate, and view spray or planting data on the moving map -- all from the S3 touch screen interface. Outback AutoMate is an automatic section control product that works directly with all Outback Guidance products and delivers one of the industry's quickest returns on investment. The software update is targeted at enhancing customer's experience with the Outback S3 and Outback AutoMate systems. - Hemisphere GPS launched its new Earthworks business unit that designs and manufactures products for the construction market. The Earthworks product line is focused on machine guidance and control of earth- moving machinery. Hemisphere GPS has adapted its proven technology and applications currently used in agriculture, aerial application, marine and survey markets, to meet the needs of the construction industry. - Hemisphere GPS announced its first Earthworks product, the Earthworks X200 excavator machine guidance system, which improves operator accuracy, simplifies machine operations and reduces excavation rework. The X200 guides the operator with a graphical and numeric display of the excavator bucket relative to the desired grade. "My company engaged two Hemisphere GPS X200 systems during fall 2009 and we have proven them to increase productivity and impact the bottom line by more than 25 per cent, even on smaller jobs," said Doug Pratt, president of Prattco Excavating Ltd. The company plans to expand its Earthworks product portfolio by offering complementary excavator and blade solutions in 2010. - The Company launched the Crescent Vector II OEM board that brings a series of new features to Hemisphere GPS patented Crescent receiver technology including heave, pitch and roll output, more accurate timing, lower phase noise, and an improved accelerometer. The Crescent Vector II OEM board improves upon the success of the original Crescent Vector by providing a more robust precision GPS solution to both OEM integrators and off-the-shelf end-users. The release provides these advancements across the entire Vector-based product line. - Subsequent to the end of the second quarter, Sunshine Village, a ski resort located in Banff, Alta. began outfitting its entire snowcat fleet with Hemisphere GPS's new snow grooming guidance systems. Sunshine Village operators can use the guidance systems to record boundaries and set flags on the screen to map tree lines, out-of- bounds limits, winch holds, hazards or other areas of interest. They can mark thin snowpack to address it on the next pass or navigate back to the location at a different time. With Hemisphere's snow grooming guidance systems, maintenance managers are able to review job files for operator and machine performance and concerns. It is easy to plot speed, position, area covered and time. "We experienced productivity improvements immediately with Hemisphere's snow grooming guidance systems," says Rod Chisholm, maintenance manager at Sunshine Village ski resort. 

 Hemisphere Gps INC. Consolidated Balance Sheets (unaudited - expressed in U.S. dollars) ------------------------------------------------------------------------- June 30, December 31, 2010 2009 ------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 7,885,902 $ 8,397,418 Accounts receivable 8,116,001 5,986,781 Inventories 15,485,767 17,751,949 Deferred commissions 148,395 187,436 Prepaid expenses and deposits 442,516 628,023 ----------------------------------------------------------------------- 32,078,581 32,951,607 Deferred commissions 103,234 158,171 Property and equipment 7,453,882 7,905,708 Intangible assets 6,361,081 7,386,776 Goodwill 40,379,810 40,919,957 ------------------------------------------------------------------------- $ 86,376,588 $ 89,322,219 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 5,862,388 $ 4,030,075 Deferred revenue 989,865 1,242,573 Current portion of capital lease 92,097 89,637 ----------------------------------------------------------------------- 6,944,350 5,362,285 Deferred revenue 686,509 819,888 Capital lease 208,038 258,426 Shareholders' equity: Share capital 107,708,468 107,708,468 Contributed surplus 4,217,551 3,853,826 Deficit (43,731,119) (40,121,337) Accumulated other comprehensive income 10,342,791 11,440,663 ------------------------------------------------------------------------- 78,537,691 82,881,620 ------------------------------------------------------------------------- $ 86,376,588 $ 89,322,219 ------------------------------------------------------------------------- ------------------------------------------------------------------------- HEMISPHERE GPS INC. Consolidated Statements of Operations and Deficit (unaudited - expressed in U.S. dollars) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, --------------------------- --------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- Sales $ 15,557,105 $ 14,465,261 $ 30,625,508 $ 32,420,313 Cost of sales 8,901,535 7,182,484 17,161,514 15,730,497 ------------------------------------------------------------------------- 6,655,570 7,282,777 13,463,994 16,689,816 Expenses: Research and development 2,531,431 1,995,546 4,915,407 4,096,908 Sales and marketing 3,100,466 2,832,314 6,371,912 6,056,998 General and administrative 1,836,101 1,768,856 3,561,790 3,344,061 Stock-based compensation 195,601 205,638 363,725 422,506 Amortization 820,866 762,970 1,687,540 1,476,450 ------------------------------------------------------------------------- 8,484,465 7,565,324 16,900,374 15,396,923 ------------------------------------------------------------------------- Earnings (loss) before undernoted items (1,828,895) (282,547) (3,436,380) 1,292,893 Foreign exchange loss (gain) (142,024) 173,254 (28,518) 162,790 Interest income (3,714) (7,345) (6,065) (16,680) Restructuring costs 207,985 812,186 207,985 812,186 ------------------------------------------------------------------------- Net earnings (loss) (1,891,142) (1,260,642) (3,609,782) 334,597 Deficit, beginning of period (41,839,977) (32,636,954) (40,121,337) (34,232,193) ------------------------------------------------------------------------- Deficit, end of period $(43,731,119) $(33,897,596) $(43,731,119) $(33,897,596) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per common share from continuing operations: Basic and diluted $ (0.03) $ (0.02) $ (0.06) $ 0.01 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per common share: Basic and diluted $ (0.03) $ (0.02) $ (0.06) $ 0.01 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average shares outstanding: Basic 55,561,667 55,561,667 55,561,667 55,561,667 Diluted 55,561,667 55,561,667 55,561,667 55,561,667 HEMISPHERE GPS INC. Consolidated Statements of Cash Flows (unaudited - expressed in U.S. dollars) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, --------------------------- --------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- Cash flows from (used in) operating activities: Earnings (loss) from continuing operations $ (1,891,142) $ (1,260,642) $ (3,609,782) $ 334,597 Items not involving cash: Amortization 902,467 821,767 1,850,846 1,591,190 Stock-based compensation 195,601 205,638 363,725 422,506 Unrealized foreign exchange loss (gain) (339,732) 492,472 (202,493) 23,120 ------------------------------------------------------------------------- (1,132,806) 259,235 (1,597,704) 2,371,413 Change in non-cash operating working capital: Accounts receivable (899,239) 3,165,179 (2,261,529) 445,478 Inventories 1,201,584 809,492 2,048,877 (3,608,315) Prepaid expenses and deposits 175,969 66,425 182,820 54,748 Deferred commissions 20,089 13,600 91,360 44,582 Accounts payable and accrued liabilities (124,431) (4,373,213) 1,913,573 (2,515,713) Foreign currency contract - (2,985,954) - (3,270,210) Deferred revenue (131,196) (185,617) (367,331) (234,865) ------------------------------------------------------------------------- (890,030) (3,230,853) 10,066 (6,712,882) Cash flows used in financing activities: Capital lease obligations (22,589) - (44,443) - ------------------------------------------------------------------------- (22,589) - (44,443) - Cash flows used in investing activities: Purchase of property and equipment (213,771) (298,996) (425,916) (529,397) Intangible asset additions (26,548) (493,390) (79,880) (697,300) ------------------------------------------------------------------------- (240,319) (792,386) (505,796) (1,226,697) ------------------------------------------------------------------------- Decrease in cash position (1,152,938) (4,023,239) (540,173) (7,939,579) Effect of currency translation on cash balances and cash flows (16,219) 302,076 28,657 441,810 Cash and cash equivalents, beginning of period 9,055,059 12,512,069 8,397,418 16,288,675 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 7,885,902 $ 8,790,906 $ 7,885,902 $ 8,790,906 ------------------------------------------------------------------------- -------------------------------------------------------------------------