Atlantis Systems Corp.
TSX VENTURE : AIQ.H

Atlantis Systems Corp.

August 18, 2011 21:11 ET

Atlantis Systems Corp. Reports Second Quarter 2011 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 18, 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. ("Atlantis") (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 second quarter ended June 30, 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.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 and six months ended June 30, 2011 and 2010
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
For the three months For the six months
ended June 30 ended June 30
2011 2010 2011 2010
Revenue $ 4,014 $ 4,962 $ 8,735 $ 9,136
Cost of revenue 2,826 3,275 6,321 5,822
General and administrative 1,020 1,047 1,749 2,290
Selling and marketing 213 68 367 252
Share-based compensation expense - 4 - 9
Depreciation and amortization 63 344 104 692
Interest and financing costs, net (Note 8) 436 331 743 774
Currency exchange (gain)/loss on foreign debt (26 ) 339 (221 ) 8
Write down of investments 6 - 6 -
Loss on disposal of capital assets - - 6 -
Other income (Note 21) (743 ) - (743 ) -
Net income / (loss) $ 219 $ (446 ) $ 403 $ (711 )
Net income / (loss) and comprehensive gain / (loss) $ 219 $ (446 ) $ 403 $ (711 )
Net gain /(loss) per share
Basic:
Net gain / (loss) $ 0.02 $ (0.05 ) $ 0.04 $ (0.12 )
Diluted:
Net gain / (loss) $ 0.02 $ (0.05 ) $ 0.04 $ (0.12 )
Weighted average number of shares:
Basic 10,233,683 8,696,483 10,233,683 5,764,223
Diluted 10,258,683 8,721,483 10,258,683 5,789,223
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 June 30, 2011, December 31, 2010 and January 1, 2010
(Expressed in thousands of Canadian dollars)
(Unaudited)
June 30 December 31 January 1
as at 2011 2010 2010
ASSETS
Current assets
Cash and cash equivalents $ 386 $ 1,110 $ 161
Note receivable (Note 11) 199 200 -
Trade and other receivables (Note 9) 2,543 2,439 2,089
Unbilled revenue 5,232 3,679 2,376
Inventory (Note 10) 9 118 489
Prepaid expenses 65 167 143
Current assets of discontinued operations (Note 7) - 16 16
8,434 7,729 5,274
Note receivable (Note 11) - 100 -
Capital assets, net (Note 12) 576 615 667
Long-term prepaid expenses 149 151 54
Other long-term assets 71 77 77
Core technology - - 797
796 943 1,595
$ 9,230 $ 8,672 $ 6,869
LIABILITIES
Current liabilities
Operating line of credit (Note 13) $ 10,508 $ 6,732 $ 5,555
Accounts payable and accrued liabilities 3,600 4,659 4,162
Deferred revenue 1,011 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
15,119 14,964 16,726
SHAREHOLDERS' DEFICIENCY
Share capital and warrants (Note 14) 92,837 92,837 89,917
Share-based payments reserve 9,338 9,338 9,327
Deficit (108,064 ) (108,467 ) (109,101 )
(5,889 ) (6,292 ) (9,857 )
$ 9,230 $ 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)
ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statement of Changes in Shareholders' Deficiency
For the six months ended June 30, 2011 and 2010
(Expressed in thousands of Canadian dollars, except share amounts
(Unaudited)
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 )
Net income / (loss) and comprehensive income / (loss) - - - - (711 ) (711 )
Balance, June 30, 2010 2,799,383 $ 89,314 $ 9,327 $ 603 $ (109,812 ) $ (10,568 )
Net income / (loss) and comprehensive income / (loss) - - - - 1,345 1,345
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 )
Net income / (loss) and comprehensive income / (loss) - - - - 403 403
Balance, June 30, 2011 10,233,683 $ 92,810 $ 9,338 $ 27 $ (108,064 ) $ (5,889 )
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 and six months ended June 30, 2011 and 2010
(Expressed in thousands of Canadian dollars)
(Unaudited)
For the three months For the six months
ended June 30 ended June 30
2011 2010 2011 2010
Cash flows provided by (used in):
Operating activities:
Net income / (loss) $ 219 $ (446 ) $ 403 $ (711 )
Items not affecting cash:
Depreciation and amortization 63 344 104 692
Loss on disposal of capital assets - - 6 -
Writedown of investments 6 - 6 -
Long-term prepaid expenses 1 (24 ) 2 (100 )
Other long-term assets 6 - 6 -
Interest and financing costs, net 436 331 743 774
Share-based payment expense - 4 - 9
731 209 1,270 664
Net change in non-cash working capital (Note 18) (2,087 ) (355 ) (3,766 ) (786 )
Net cash used in operations (1,356 ) (146 ) (2,496 ) (122 )
Interest paid (337 ) (76 ) (935 ) (481 )
Net cash used in operating activities (1,693 ) (222 ) (3,431 ) (603 )
Investing activities:
Investment in capital assets - (48 ) (77 ) (57 )
- (48 ) (77 ) (57 )
Financing activities:
Term debt repayment - (2,380 ) - (2,380 )
Term debt conversion to shares - 2,641 - 2,641
Bridge loan proceeds / (repayment), net - (157 ) (996 ) 100
Net change on operating line of credit 1,824 39 3,776 572
Net cash provided by financing activities 1,824 143 2,780 933
Net cash provided by foreign exchange gain / (loss) on term debt - 1 4 (119 )
Net increase / (decrease) in cash 131 (126 ) (724 ) 154
Cash, beginning of period - continuing operations 255 353 1,110 73
Cash, beginning of period - discontinued operations - - - -
Cash, end of period $ 386 $ 227 $ 386 $ 227
SUPPLEMENTAL INFORMATION
Income taxes paid $ - $ - $ - $ -
The accompanying notes are an integral part of these condensed consolidated interim statements.

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