Atlantis Systems Corp.
TSX VENTURE : AIQ.H

Atlantis Systems Corp.

May 29, 2013 15:18 ET

Atlantis Reports First Quarter 2013 Financial Results

HALIFAX, NOVA SCOTIA--(Marketwired - May 29, 2013) -

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 condensed consolidated interim financial statements for the first quarter ended March 31, 2013. Full results are available on www.sedar.com.

The financial statements have not been reviewed by an auditor. The unaudited condensed consolidated interim financial statements of Atlantis Systems Corp. have been prepared by and are the responsibility of management acting on behalf of Atlantis Systems Corp. The Company's independent auditors, Deloitte & Touche LLP have not performed a review of these condensed interim consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity's auditor.

About Atlantis Systems Corp.

Atlantis Systems (NEX:AIQ.H) uses its core capabilities in simulation-aided design and engineering and e-learning, combined with various technology tools, to help customers in military and commercial markets to 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.atlantissc.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 for 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 Loss
For the three months ended March 31, 2013 and 2012
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
For the three months
ended March 31,
2013 2012
Revenue $ 2,158 $ 3,014
Cost of revenue 1,744 1,880
Gross margin 414 1,134
Other income 70 120
Expenses
General and administrative 537 1,009
Selling and marketing 353 111
Restructuring costs - 25
890 1,145
Operating income (loss) $ (406) 109
Depreciation and amortization 22 40
Finance costs 624 378
Accretion expense (9) 17
Foreign currency loss (gain) 279 (180)
Gain on disposal of capital assets (3) -
Net and comprehensive loss $ (1,319) $ (146)
Loss per share
Basic $ (0.13) $ (0.01)
Diluted $ (0.13) $ (0.01)
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2013 and December 31, 2012
(Expressed in thousands of Canadian dollars)
(Unaudited)
March 31, December 31,
2013 2012
ASSETS
Current Assets
Cash and cash equivalents $ 247 $ 15
Trade and other receivables 3,146 3,567
Unbilled revenue 2,238 2,492
Prepaid expenses 126 21
5,757 6,095
Unbilled revenue 163 125
Capital assets, net 349 370
Other long term assets 64 67
576 562
$ 6,333 $ 6,657
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities 1,508 1,898
Deferred revenue 542 136
Provision for restructuring costs 472 627
Term debt 811 -
3,333 2,661
Deferred revenue 89 248
Term note 6,639 6,504
Convertible note 7,094 6,747
Derivative liability 17 17
13,839 13,516
17,172 16,177
SHAREHOLDERS' DEFICIENCY
Share capital and warrants
Shared-based payments reserve
Deficit

92,810
9,338
(112,987)

92,810
9,338
(111,668)
(10,839) (9,520)
$ 6,333 $ 6,657

Approved on behalf of the Board of Directors:

"David Williams", Director

"Ken Howard", Director

ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Changes in Shareholders' Deficiency
For the three months ended March 31, 2013 and 2012
(Expressed in thousands of Canadian dollars, except number of shares)
(Unaudited)
Share-based Total
Number of Common payments Accumulated shareholders'
shares stock Warrants reserve deficit deficiency
Balance, January 1, 2012 10,233,683 92,810 27 9,338 (111,132) (8,957)
Comprehensive loss - - - - (146) (146)
Balance, March 31, 2012 10,233,683 92,810 27 9,338 (111,278) (9,103)
Comprehensive loss - - - - (417) (417)
Warrants expired - - (27) - 27 -
Balance, December 31, 2012 10,233,683 92,810 - 9,338 (111,668) (9,520)
Comprehensive loss - - - - (1,319) (1,319)
Balance, March 31, 2013 10,233,683 92,810 - 9,338 (112,987) (10,839)
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2013 and 2012
(Expressed in thousands of Canadian dollars)
(Unaudited)
For the three months
ended March 31,
2013 2012
Cash flows provided by (used in):
Operating activities:
Net loss $ (1,319) $ (146)
Items not affecting cash:
Depreciation and amortization 22 40
Foreign currency loss (gain) 279 (243)
Finance costs 624 389
Accretion on term debt (9) 17
Other long-term assets - (1)
Net change in non-cash working capital 234 162
Gain on disposal of capital asset 3 -
Finance costs paid (412) (199)
Net cash provided (used) in operating activities (578) 19
Investing activities:
Investment in capital assets (1)
Net cash used in investing activities (1) -
Financing activities:
Term debt proceeds, net 811 -
Net cash provided by financing activities 811 -
Net increase in cash and cash equivalents 232 19
Cash and cash equivalents, beginning of period 15 1,610
Cash and cash equivalents, end of period $ 247 $ 1,629

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