|
Results of Operations
The Company’s results of operations for 2001, 2000 and 1999
are set forth in the table below:
|
|
|
Year ended December 31,
|
 |
| |
1999
|
2000
|
2001
|
| |
| Revenues |
$24,226
|
100.0%
|
$24,843
|
100.0%
|
$28,237
|
100.0%
|
| Cost of sales |
12,646
|
52.2
|
10,842
|
43.6
|
13,272
|
47.0
|
| |
| Gross profit |
11,580
|
47.8
|
14,001
|
56.4
|
14,965
|
53.0
|
| |
| Operating expenses: |
|
|
|
|
|
|
|
Research and development |
6,902
|
28.5
|
8,161
|
32.9
|
6,827
|
24.2
|
| |
Selling and marketing |
3,925
|
16.2
|
4,527
|
18.2
|
3,859
|
13.6
|
|
General and administration |
2,783
|
11.5
|
3,661
|
14.7
|
4,170
|
14.8
|
| |
| Total operating expenses |
13,610
|
56.2
|
16,349
|
65.8
|
14,856
|
52.6
|
| |
Operating income (loss)
|
(2,030)
|
(8.4)
|
(2,348)
|
(9.4)
|
109
|
0.4
|
Interest income
|
374
|
1.5
|
319
|
1.3
|
138
|
0.4
|
Other expense
|
(204)
|
(0.8)
|
(769)
|
(3.2)
|
(124)
|
(0.4)
|
| |
Income (loss) from continuing
operations before income taxes |
(1,860)
|
(7.7)
|
(2,798)
|
(11.3)
|
123
|
0.4
|
| Provision for income taxes |
123
|
0.5
|
13
|
0.0
|
13
|
0.0
|
| |
Net income (loss) from continuing
operations
|
(1,983)
|
(8.2)
|
(2,811)
|
(11.3)
|
110
|
0.4
|
Net income from
discontinued operations
|
949
|
3.9
|
16
|
0.0
|
—
|
0.0
|
| |
Net income (loss)
|
$(1,034)
|
(4.3)%
|
$(2,795)
|
(11.3)%
|
$110
|
0.4%
|
|
2001 Compared to 2000
Revenues. Revenues include product sales and NRE fees. Product
sales revenues consist primarily of sales of OEM boards, software,
software upgrades, WAAS type receivers and end-user products for
the GIS and survey markets. The Company categorizes its revenues
into the following three market sectors: 1) Geomatics; 2) Aerospace
and Defense; and 3) Special Applications.
Total revenues increased 14% from $24.8 million in 2000 to $28.2
million in 2001. The following table sets forth revenue by market
sector for 2001 and 2000.
| |
2001
|
2000
|
Change
|
| |
| |
$
|
%
|
$
|
%
|
$
|
%
|
| |
Geomatics
|
$7,040
|
25%
|
$ 8,513
|
34%
|
$ (1,473)
|
(17)%
|
| Aerospace & Defense |
8,846
|
31%
|
4,969
|
20%
|
3,877
|
78%
|
Special Applications
|
11,945
|
42%
|
11,128
|
45%
|
817
|
7%
|
| Other |
406
|
2%
|
233
|
1%
|
173
|
74%
|
| |
| TOTAL |
$28,237
|
100%
|
$24,843
|
100%
|
$ 3,394
|
14%
|
|
Geomatics. The Geomatics sector is made up of the surveying
and GIS markets. In 2001, Geomatics revenues were largely comprised
of the Company’s sales to Point, net of intercompany eliminations,
and the Company’s proportionate share of sales by Point.
In July 1999, the Company transitioned to a new GPS surveying partner,
Sokkia, a world leader in surveying. The partnership reflects a
move from a supplier relationship to a fully integrated development
team. Sokkia and the Company formed a joint venture known as Point.
The ownership of Point is 51% Sokkia and 49% the Company. Point
provides Sokkia’s global marketing organization with advanced
measurement solutions for the fields of surveying, mapping, GIS,
construction and construction machine control. Sokkia’s distribution
system includes more than 25 subsidiaries and additional representatives
around the world, each having its own dealer network.
On February 21, 2002, the Company signed an agreement with Leica
Geosystems (Leica), setting out the parties’ intention to enter
into a strategic cooperation arrangement; the objective of the agreement
being the common development of new technology for GPS and its advancement
in the high-accuracy segment. More specifically, the Company will
develop a custom version of existing GPS engines and other components
for Leica.
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