WINNIPEG – Radio automation system maker OMT Inc. reported growing results for the second quarter of 2005, ended June 30th.
Sales for the quarter ended June 30, 2005 show an increase of 22.9% over the same quarter last year to $1.04 million. The increase is largely attributed to hardware sales, says the company, which increased from $309,000 in Q2 2004 to $477,000 this quarter.
These hardware sales were related to the increased deployments of iMediaTouch to new radio station clients and Intertain’s retail previewing service to existing clients (the company also sells to retailers). Although sales are higher, due to the lower margins associated with hardware, the overall increase in gross profit was 6.8% over the same quarter last year to $611,000.
Software and service sales increased slightly from $540,000 to $567,000 5%over the same quarter last year. Year to date, gross profit was $73,000 (6.2%) higher this year, as compared to last year.
OMT had a working capital balance of $228,499 as of June 30, 2005. This is a decrease of $117,826 since December 31, 2004. The current ratio of current assets to current liabilities is 1.22:1 as compared to 1.25:1 at December 31, 2004 and 0.5:1 at December 31, 2003. The improvement is a result of the financing that closed in December 2004. The company has no borrowings on the operating credit line of $600,000 as of June 30.
Other highlights in the quarter included:
* Completed one of the largest deployment quarters for iMediaTouch to new radio station customers including the signing of new target multi-station radio station groups.
* Signed a four-year exclusive partnership agreement with the Canadian Broadcasting Corporation’s Galaxie music division for content delivery by Intertain’s background music and messaging service.
*Completed a content licensing agreement for Intertain’s music previewing service with EMI Music Canada, which consists of 70 music labels including Capitol Music, Virgin Music and BlueNote.
* Signed a large contract valued at over Cdn$800,000 for iMediaTouch to AZCAR USA Inc as part of its contract for the American Armed Forces Radio and Television Service (AFRTS) Digital Radio Facility at the Defense Media Center at March Air Force Base in CA.
