MIST Inc. reported results for the first quarter of the 2001 fiscal year.
Revenue for the quarter was $4.9 million compared to $6.5 million for the same period in 1999. The decline was due to the acceleration of purchases in 1999 in preparation for the Year 2000. In the first quarter of fiscal 2000, the Company was completing a number of certifications required to sell wireless units. Several of the certifications were not completed until late in the quarter, which delayed the Company’s ability to sell its wireless products in the US.
Operating loss from continuing operations for the first quarter was $1,800,000 compared to income of $661,000 for the same period in the prior year. Income from discontinued operations was $928,000, compared to a loss of $390,000 for the same period in the prior year. Discontinued operations includes the results of the US card facility up to November 14, 2000, the date it was sold, the results of the Canadian card facility, which was sold in February 2001 and the results of NBS Holdings Limited. The Company recorded a gain on the sale of the US card facility of $9.3 million during the quarter. Net income applicable to common shares for the quarter was $7.1 million, or $0.21 income per share on a fully diluted basis, compared to a loss of $124,000, or ($0.00) loss per share on a fully diluted basis for 1999.
Operating highlights include:
– The Company focused its efforts on completing wireless network certifications in preparation for the introduction of two new products: FreedomGateTM and MIST Freedom III. MIST Freedom III (“FIII”) is nearing completion and should be available for sale in April of this year. FIII is a desktop, Internet enabled, wireless point of sale transaction terminal with a touch screen. FIII was designed to take full advantage of the features of FreedomGate, our software platform for enabling wireless transactions and eCommerce. FreedomGate should be available to select customers during the second fiscal quarter of this year, and more widely available in the third quarter of this fiscal year. The Company was also successful in certifying MIST Freedom II with several large US based transaction processors. These certifications are essential to sell the product in the US market.
– Development of MIST FreedomSped was completed and will be available for sale during the second quarter of the fiscal year. FreedomSped is a secure pin entry device, or pinpad, that supports smart card transactions. It is available for our wired Turbo product, MIST Freedom III or may be attached to PC based cash registers, allowing customers the opportunity to cost effectively serve the growing smart card market.
“It is a very exciting time at MIST. Development of FreedomGate and MIST Freedom III are nearing completion, and customer reaction to our technology has been very positive,” stated Charles E. Lee, President and CEO of MIST Inc. “We look forward to bringing our customers great technology and innovation this year. Our re-organization is nearly complete and our energies are entirely focused on bringing our new wireless products and services to market successfully.”
About MIST Inc.
MIST Inc. (TSE: MIS), a leading global provider of wireless transaction-enabling technologies, is in the business of designing, manufacturing, and distributing wireless and wired Point-of-Sale (POS) solutions, including FreedomGateTM, our wireless enabling gateway platform. MIST’s clients include Canadian and international banks, financial institutions, credit and debit card processors, as well as retail, hotel, restaurant, healthcare, and loyalty customers. The “MIST Freedom” family of wireless transaction terminals was developed to complement its range of existing products. MIST has business offices in Canada, and the United States.
For more details on MIST earnings visit CardData ([www.carddata.com]).