Atlantis Systems Corp.
TSX VENTURE : AIQ.H

Atlantis Systems Corp.

June 27, 2011 09:00 ET

Atlantis Reports First Quarter 2011 Financial Results

TORONTO, ONTARIO--(Marketwire - June 27, 2011) -This news release may contain forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release. All amounts are stated in Canadian dollars except where otherwise noted.

Atlantis Systems Corp. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its unaudited financial and operating results for the first quarter ended March 31, 2011. Full results are available on www.sedar.com.

About Atlantis Systems Corp.

Atlantis Systems Corp (NEX:AIQ.H) uses its core capabilities in simulation-aided design, engineering and e-learning, combined with various technology tools, to help customers in military and civil aviation ensure the feasibility, capability, and effective utilization of their complex assets. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global OEM customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissi.com.

Forward-Looking Statements

Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information regarding risks and uncertainties that could affect Atlantis' business is contained in the Business Risk Factors section of Atlantis's Annual MD&A available on SEDAR at www.sedar.com.

ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Operations
and Comprehensive Income/(Loss)
For the three months ended March 31, 2011 and 2010
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
For the three months
ended March 31
20112010
Revenue$4,721$4,174
Cost of revenue3,4952,547
General and administrative7291,243
Selling and marketing154184
Share-based compensation expense-5
Depreciation and amortization41348
Interest and financing costs, net (Note 8)307443
Currency exchange gain on foreign debt(195)(331)
Loss on disposal of capital assets6-
Net income / (loss)$184$(265)
Net income / (loss) and comprehensive income / (loss)$184$(265)
Net income/(loss) per share
Basic:
Net income / (loss)$0.02$(0.09)
Diluted:
Net income / (loss)$0.02$(0.09)
Weighted average number of shares
Basic10,233,6832,799,383
Diluted10,258,6832,824,383
The accompanying notes are an integral part of these condensed consolidated interim statements.
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2011, December 31, 2010 and January 1, 2010
(Expressed in thousands of Canadian dollars)
(Unaudited)
March 31December 31January 1
as at201120102010
ASSETS
Current assets
Cash and cash equivalents$255$1,110$161
Trade and other receivables (Note 9)3,4392,6392,089
Unbilled revenue4,4403,6792,376
Inventory (Note 10)156118489
Prepaid expenses118167143
Current assets of discontinued operations (Note 7)151616
8,4237,7295,274
Note receivable (Note 11)100100-
Capital assets, net (Note 12)640615667
Long-term prepaid expenses15015154
Other long-term assets777777
Core technology--797
9679431,595
$9,390$8,672$6,869
LIABILITIES
Current liabilities
Operating line of credit (Note 13)$8,684$6,732$5,555
Accounts payable and accrued liabilities4,8564,6594,162
Deferred revenue1,9482,5663,367
Bridge loans (Note 13 )--898
Term debt (Note 13)-9962,733
Current liabilities of discontinued operations (Note 7)101111
15,49814,96416,726
SHAREHOLDERS' DEFICIENCY
Share capital and warrants (Note 14)92,83792,83789,917
Share-based payments reserve9,3389,3389,327
Deficit(108,283)(108,467)(109,101)
(6,108)(6,292)(9,857)
$9,390$8,672$6,869
The accompanying notes are an integral part of these condensed consolidated interim statements.
Going concern (Note 2); Subsequent Events (Note 20)
Commitments (Note 17)
On behalf of the Board:
"Henrik Noesgaard""Anne-Marie Gammon"
ChairmanChief Financial Officer
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statement of Changes in Shareholders' Deficiency
For the three months ended March 31, 2011 and 2010
(Expressed in thousands of Canadian dollars, except number of common shares)
(Unaudited)
Number of
Shares
Common
Stock
Share-based
Payment
Reserve
WarrantsAccumulated
Deficit
Total Share-
holders'
Deficiency
Balance, January 1, 20102,799,383$89,314$9,327$603$(109,101)$(9,857)
Net income / (loss) and comprehensive income / (loss)----(265)(265)
Balance, March 31, 20102,799,383$89,314$9,327$603$(109,366)$(10,122)
Net income / (loss) and comprehensive income / (loss)----899899
Warrants exercised465,000855-(576)-279
Granted - term debt conversion6,969,3002,641---2,641
Share-based payments reserve--11--11
Balance, December 31, 201010,233,683$92,810$9,338$27$(108,467)$(6,292)
Net income / (loss) and comprehensive income / (loss)----184184
Balance, March 31, 201110,233,683$92,810$9,338$27$(108,283)$(6,108)
The accompanying notes are an integral part of these condensed consolidated interim statements.
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2011 and 2010
(Expressed in thousands of Canadian dollars)
(Unaudited)
For the three months
ended March 31
20112010
Cash flows provided by (used in):
Operating activities:
Net income / (loss)$184$(265)
Items not affecting cash:
Depreciation and amortization41348
Loss on disposal of capital assets6-
Long-term prepaid expenses1(76)
Interest and financing costs, net307443
Share-based compensation expense-5
539455
Net change in non-cash working capital (Note 18)(1,679)(431)
Net cash used in operations(1,140)24
Interest paid(598)(405)
Net cash used in operating activities(1,738)(381)
Investing activities:
Investment in capital assets(77)(9)
Net cash used in investing activities(77)(9)
Financing activities:
Bridge loan proceeds / (repayment), net(996)257
Net change on operating line of credit1,952533
Net cash provided by financing activities956790
Net cash provided by foreign exchange gain / (loss) on term debt4(120)
Net decrease in cash(855)280
Cash, beginning of period - continuing operations1,11073
Cash, beginning of period - discontinued operations--
Cash, end of period$255$353
SUPPLEMENTAL INFORMATION
Bank indebtedness, net for continuing operations is comprised of:
Cash$255$353
Bank operating line of credit--
Bank indebtedness, net for discontinued operations is comprised of:
Cash$-$-
$255$353
The accompanying notes are an integral part of these condensed consolidated interim statements.

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