LTSC may run on very nice earnings in AH yesterday, just a .49 stock here: Lightscape Technologies Reports FY 2007 Results
Tuesday July 17, 4:01 pm ET
- Annual Revenues Increase 796% to $13.6 million -
- Annual Net Income Increases to $1.07 million compared to a Net Loss in Prior Year -
HONG KONG, July 17 /PRNewswire-FirstCall/ -- Lightscape Technologies Inc. (OTC Bulletin Board: LTSC - News), a provider of innovative lighting design solutions, advanced lighting products and customized energy management solutions, today reported fiscal year end 2007 operating results.
For the year ended March 31, 2007, revenue increased 796% to $13.6 million compared to $1.5 million in the prior year. This increase was attributable primarily to the increased sales of LED lighting design solutions by the Company's Lightscape Macau subsidiary and from the sale of HID lighting source products derived from subsidiary, Beijing Illumination. Gross profit increased to $5.6 million compared to $0.3 million in the prior year. Gross profit margins increased 16.5 percentage points to 41.2% compared to 24.7% in the prior year.
Net income for the year increased to $1,079,891, or $0.02 per diluted share, compared to a loss of ($3,721,139), or ($0.18) per diluted share in the prior year. Net profit margins increased to 7.9%.
"We are very pleased with our operating performance for the year," commented Bondy Tan, President and CEO of Lightscape Technologies. "We posted strong revenue and earnings growth, led by our LED lighting design solutions segment. Among our three core divisions, our wholly-owned subsidiary, Lightscape Technologies (Macau) Ltd., successfully completed a keystone LED lighting solutions project for the Galaxy StarWorld Hotel and Casino in Macau during fiscal 2007, transforming the casino into an architainment landmark in Macau.
"Our majority-owned subsidiary Beijing Illumination (Hong Kong) Limited contributed solid revenue and returns to our bottom line in fiscal 2007, and continues to develop new products to expand its markets. Key new product lines include high-intensity discharge xenon lights, which are used within automobile headlights. Our third subsidiary, Tech Team Holdings Limited, which is a wholly-owned subsidiary, continues to operate within the energy-savings solutions business. We plan to continue to leverage our energy-savings expertise to offer lighting solutions which produce substantial long-term cost savings for our customers."
During fiscal 2007, the Company issued a private placement of redeemable convertible notes to three investors for total proceeds of USD $6 million. These investors consisted of Investec Bank (UK) Limited (a subsidiary of Investec plc, an international specialist banking group), Full Moon Resources Limited (a company owned and controlled by Hong Kong investor Mr. Francis Leung), and LP Asset Management Limited (a company owned and controlled by Hong Kong investor Mr. Patrick Wong). The Company also issued two options to each of the three investors to purchase additional redeemable convertible notes in the aggregate amount of up to USD $12 million. The infusion of these funds provides the working capital the company needs to rapidly grow its lighting business and implement its branding strategy.
Also during fiscal 2007, the Company launched its new corporate name 'Lightscape Technologies Inc.'. With the rapid growth and greater focus on the Company's LED lighting design solutions segment, this corporate name change better reflects its new strategic focus within the lighting industry. The name change, coupled with implementation of a re-branding strategy, reflects the image that the Company wishes to convey to its customers, shareholders and investors as a leader in the provision of innovative, creative and energy- efficient 'lightscapes' for a variety of architectural, commercial and retail developments.
Mr. Tan continued, "As we look to our 2008 fiscal year, we believe our strongest opportunities for growth will come from several segments within our LED lighting design business. First, we continue to pursue strategic opportunities for LED lighting design solutions contracts, including proposals we have in the pipeline with other major casino developments in Macau, and commercial property developments in mainland China, Hong Kong and Singapore.
"Second, our OEM business, which consists of our proprietary AI-One Multimedia and Video Show Control System, continues to show promise and will be an area that we will continue to pursue in fiscal 2008. Our AI-One product is a powerful, PC-based software system for the authoring, control and playback of intricate, large-scale lighting and audio effects. This business primarily targets LED manufacturers and LED lighting system designers which use our AI-One software system to create and control lighting effects for their own LED lighting systems. We are in the midst of redesigning our AI-One software to create a more simplified version preferred by some of our OEM customers. This redesign reduced our order flow with our first major OEM customer, Strong Base Electronic-optic Technology Corp., during the fourth quarter but we believe our roll-out of a simplified version of our AI-One software will improve order demand from Strong Base as well as attract new orders from other lighting manufacturers and designers in fiscal 2008.
"Third, Lightscape plans to offer short-term rentals of LED lighting hardware. The main products we plan to rent are LED panels and LED video walls. Our primary markets for LED lighting rentals include corporate events (conventions, conferences, trade shows, special exhibits), advertising companies (indoor and outdoor digital signage), television and film productions, government (special events), and live performances (theatre productions, music concerts)."
Mr. Tan concluded, "Our company has undergone many positive changes over the past twelve months. As a result of these changes, we are now positioned to be a world-class sales and marketing company offering our customers creative lighting solutions and products. Anchored by our proprietary lighting control technologies and our creative design strengths, our solutions bring light to life for our customers. In addition, we leverage our energy-savings expertise to offer lighting solutions which produce substantial long-term cost savings for our customers. We remain excited about the opportunities ahead, particularly within our LED lighting business, and look for our momentum to continue in fiscal 2008."
Additional information regarding Lightscape Technologies' financial performance as of and for the fiscal year ended March 31, 2007 and a comparison to the fiscal year ended March 31, 2006 can be found on the attached balance sheet and statements of operations and in the company's Annual Report on Form 10-KSB.
About Lightscape Technologies
Lightscape Technologies Inc. (OTC Bulletin Board: LTSC - News) delivers innovative lighting design solutions, advanced lighting products and customized energy management solutions. Through wholly owned subsidiary Lightscape Technologies (Macau) Ltd., Lightscape Technologies designs, markets and sells LED-based lighting systems, licenses proprietary LED digital controller software, and provides LED lighting hardware rentals. Through subsidiary Beijing Illumination (Hong Kong) Limited, Lightscape Technologies manufactures and sells HID (High-Intensity Discharge) lighting products and Ultra High-Pressure Mercury Lamps. Through wholly owned subsidiary Tech Team Holdings Limited, Lightscape Technologies provides total energy management products and solutions which optimize energy consumption, lower costs, and enhance competitiveness for clients. Our headquarters are in Hong Kong, and we have offices in Singapore, China and Macau.
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. This Press Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward- looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Global Innovative's expectations, and Global Innovative expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, risks in product development and market acceptance of and demand for the company's products and services; risks of downturns in economic conditions generally; risks of intellectual property rights associated with competition and competitive pricing pressures; risks of foreign sales and high customer concentration; and other factors which may cause the actual results, performance or achievements of Lightscape Technologies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
(financial tables to follow)
LIGHTSCAPE TECHNOLOGIES INC.
AUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Expressed in US dollars
Twelve Months Ended
March 31,
2007 2006
$ $
Revenues:
Sale of energy saving solutions 493,154 1,355,942
Sale of lighting source products 5,210,646 97,616
Sale and contract revenue of lighting
design solutions 7,881,399 -
Rental income 1,285 3,856
Commission and service income 28,278 45,795
Sales-type lease income 14,644 18,023
Total net revenues 13,629,406 1,521,232
Cost of revenues:
Sale of energy saving solutions (405,568) (1,049,867)
Sale of lighting source products (3,177,833) (90,334)
Sale and contract revenue of lighting
design solutions (4,406,475) -
Rental income (632) (1,895)
Commission and service income (13,871) (2,512)
Total cost of revenues (8,004,379) (1,144,608)
Gross profit 5,625,027 376,624
Amortization of intangible assets (818,872) (528,923)
Impairment loss on intangible assets - (1,928,021)
Selling and marketing expenses (678,762) (659,901)
General and administrative expenses (3,198,404) (1,769,430)
Profit (loss) from operations 928,989 (4,509,651)
Interest expense (469,031) (141,363)
Interest income 11,193 17,843
Other income 1,345,608 898,959
Gain on disposal of investments 720 -
Equity share of the result of joint venture 64,710 (780)
Profit (loss) before income tax
and minority interests 1,882,189 (3,734,992)
Income tax (271,751) (45,508)
Net profit (loss) 1,610,438 (3,780,500)
Minority interests (530,547) 59,361
Net profit (loss) attributable to
shareholders of the Company 1,079,891 (3,721,139)
Earning (loss) per share
- Basic 0.03 (0.18)
- Diluted 0.02 (0.18)
Weighted average number of common
shares outstanding
- Basic 33,440,587 20,742,409
- Diluted 44,349,677 20,742,409
LIGHTSCAPE TECHNOLOGIES INC.
AUDITED CONSOLIDATED BALANCE SHEETS
Expressed in US dollars
March 31, March 31,
2007 2006
$ $
ASSETS
Current assets:
Cash and cash equivalents 4,117,107 158,832
Restricted deposits - 224,092
Other investments, net of write-off amount
of $31,516 on March 31, 2007 and $nil on
March 31, 2006 - 31,516
Trade receivables, net of allowance for
doubtful accounts of $413,082 on
March 31, 2007 and $210,096 on
March 31, 2006 4,823,265 1,312,775
Net investment in sales-type leases -
current portion 196,501 174,828
Prepaid expenses and other current assets 2,246,172 1,314,014
Amount due from a shareholder - 160,243
Amount due from a related company - 385,527
Inventories 1,708,020 3,532,602
Total current assets 13,091,065 7,294,429
Intangible assets 4,280,612 3,669,275
Goodwill 5,003,437 4,086,888
Investment in corporate joint venture - 839
Investments - restricted - 679,396
Plant and equipment, net 4,162,554 3,714,367
Construction in progress 1,715,141 1,937,360
Net investment in sales-type leases -
non-current portion 329,238 515,765
15,490,982 14,603,890
TOTAL ASSETS 28,582,047 21,898,319
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings 3,678 2,077,878
Options 2,619,000 -
Trade payables 2,973,388 2,093,053
Amount due to a director 39,846 3,375,283
Amounts due to directors of a subsidiary - 1,028,178
Amount due to a former minority
shareholder of a subsidiary - 517,962
Amounts due to shareholders 46,546 64,420
Amount due to a related company - 26,992
Accrued expenses and other current
liabilities 1,172,812 943,522
Obligations under capital leases -
current portion 1,774 740
Income tax payable 396,719 177,899
Total current liabilities 7,253,763 10,305,927
Non-current liabilities:
Obligations under capital leases -
non-current portion 6,947 1,851
Redeemable convertible notes (see Note 11) 147,047 -
Total non-current liabilities 153,994 1,851
Total liabilities 7,407,757 10,307,778
Minority interest 1,865,916 2,633,652
COMMITMENTS AND CONTINGENCIES
(see Notes 17 and 18)
Shareholders' equity:
Common stock
Authorized:
800,000,000 common shares,
par value $0.001 per share
100,000,000 preferred shares,
par value $0.001 per share
Issued and outstanding:
37,451,410 common shares at March 31, 2007 and
30,535,719 common shares at March 31, 2006 37,451 30,535
Common stock warrants - 573,692
Additional paid-in capital 24,139,333 14,667,387
Other reserves 28,944 -
Accumulated other comprehensive income (loss) 322,541 (40,339)
Accumulated deficit (5,219,895) (6,274,386)
Total shareholders' equity 19,308,374 8,956,889
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 28,582,047 21,898,319
--------------------------------------------------------------------------------
Source: Lightscape Technologies Inc.
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