Atlantis Systems Corp.
TSX VENTURE : AIQ.H

Atlantis Systems Corp.

April 27, 2012 11:16 ET

Atlantis Systems Corp. Reports Consolidated Financial Results for the Year Ended 2011

TORONTO, ONTARIO--(Marketwire - April 27, 2012) -

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. ("Atlantis") (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its audited consolidated financial results for the year ended 2011. Full results are available on www.sedar.com.

About Atlantis Systems Corp.

Atlantis Systems Corp. 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 Original Equipment Manufacture ("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 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.
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2011 and 2010
(Expressed in thousands of Canadian dollars except per share amounts)
For the years
ended December 31
2011 2010
Revenue $ 14,512 $ 19,851
Cost of revenue 10,853 12,912
Gross margin 3,659 6,939
Other income (Note 22) 871 -
Expenses
General and administrative 3,419 4,185
Selling and marketing 615 495
Restructuring costs 203 189
Share-based compensation expense - 11
4,237 4,880
Operating income 293 2,059
Depreciation and amortization 206 1,114
Finance costs (Note 8) 2,154 1,279
Loss on derivative liability 341 -
Acretion expense 12 -
Foreign currency loss (gain) 233 (489 )
Write down of investments 6 -
Loss (gain) on disposal of capital assets 6 (479 )
Net and comprehensive income (loss) $ (2,665 ) $ 634
Earnings (loss) per share (Note 15)
Basic $ (0.26 ) $ 0.08
Diluted $ (0.26 ) $ 0.08
The accompanying notes are an integral part of these consolidated financial statements.
ATLANTIS SYSTEMS CORP.
Consolidated Statements of Financial Position
As at December 31, 2011, December 31, 2010 and January 1, 2010
(Expressed in thousands of Canadian dollars)
December 31 December 31 January 1
2011 2010 2010
ASSETS
Current assets
Cash and cash equivalents $ 1,610 $ 1,110 $ 161
Note receivable (Note 11) 100 200 -
Trade and other receivables (Note 9) 2,624 2,439 2,089
Unbilled revenue 2,736 3,679 2,376
Inventory (Note 10) - 118 489
Prepaid expenses 299 167 143
Current assets of discontinued operations (Note 7) - 16 16
7,369 7,729 5,274
Note receivable (Note 11) - 100 -
Capital assets, net (Note 12) 521 615 667
Long-term prepaid expenses 1 151 54
Other long-term assets 67 77 77
Core technology - - 797
589 943 1,595
$ 7,958 $ 8,672 $ 6,869
LIABILITIES
Current liabilities
Operating line of credit (Note 13) $ - $ 6,732 $ 5,555
Accounts payable and accrued liabilities 2,396 4,659 4,162
Deferred revenue 1,420 2,566 3,367
Bridge loans (Note 13) - - 898
Term debt (Note 13) - 996 2,733
Current liabilities of discontinued operations (Note 7) - 11 11
3,816 14,964 16,726
Term note (Note 14) 6,648 - -
Convertible note (Note 14) 5,897 - -
Derviative liability (Note 14) 554 - -
13,099 - -
16,915 14,964 16,726
SHAREHOLDERS' DEFICIENCY
Share capital and warrants (Note 15) 92,837 92,837 89,917
Share-based payments reserve 9,338 9,338 9,327
Deficit (111,132 ) (108,467 ) (109,101 )
(8,957 ) (6,292 ) (9,857 )
$ 7,958 $ 8,672 $ 6,869
Going concern (Note 1); Subsequent events (Note 24); Commitments (Note 19)
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of the Board of Directors:
signed David Williams, Director signed Ken Howard, Director
ATLANTIS SYSTEMS CORP.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended December 31, 2011 and 2010
(Expressed in thousands of Canadian dollars, except number of shares)
Number of shares Common stock Share-based payments reserve Warrants Accumulated deficit Total shareholders' deficiency
Balance, January 1, 2010 2,799,383 $ 89,314 $ 9,327 $ 603 $ (109,101 ) $ (9,857 )
Comprehensive income (loss) - - - - 634 634
Warrants exercised 465,000 855 - (576 ) - 279
Granted - term debt conversion 6,969,300 2,641 - - - 2,641
Share-based payments reserve - - 11 - - 11
Balance, December 31, 2010 10,233,683 92,810 9,338 27 (108,467 ) $ (6,292 )
Comprehensive income (loss) - - - - (2,665 ) (2,665 )
Balance, December 31, 2011 10,233,683 $ 92,810 $ 9,338 $ 27 $ (111,132 ) $ (8,957 )
The accompanying notes are an integral part of these consolidated financial statements.
ATLANTIS SYSTEMS CORP.
Consolidated Statements of Cash Flows
For the years ended December 31, 2011 and 2010
(Expressed in thousands of Canadian dollars)
For the years
ended December 31
2011 2010
Cash flows provided by (used in):
Operating activities:
Net income (loss) $ (2,665 ) $ 634
Items not affecting cash:
Depreciation and amortization 206 1,114
Loss (gain) on disposal of capital assets 6 (479 )
Foreign currency loss (gain) 233 (489 )
Writedown of investments 6 -
Finance costs 2,154 1,279
Accretion on term debt 12 -
Loss on derivative 341 -
Share-based payment expense - 11
Long-term prepaid expense 150 (97 )
Other long-term assets 10 -
Long-term receivable 100 (100 )
Net change in non-cash working capital (Note 20) (2,780 ) (2,603 )
Interest paid (1,939 ) (486 )
Net cash used in operating activities (4,166 ) (1,216 )
Investing activities:
Investment in capital assets (119 ) (300 )
Proceeds from disposal of capital assets - 514
Net cash provided by (used in) investing activities (119 ) 214
Financing activities:
Term debt proceeds 4,785 -
Operating line proceeds - 1,951
Net cash provided by financing activities 4,785 1,951
Net increase in cash and cash equivalents 500 949
Cash and cash equivalents, beginning of year 1,110 161
Cash and cash equivalents, end of year $ 1,610 $ 1,110
The accompanying notes are an integral part of these consolidated financial statements.

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