OSI Geospatial Inc.
TSX : OSI

OSI Geospatial Inc.

April 09, 2009 16:05 ET

OSI Geospatial Inc Reports 2009 First Quarter Results

OTTAWA, ONTARIO--(Marketwire - April 9, 2009) - OSI Geospatial Inc (TSX:OSI) today announced its financial results for the first quarter of fiscal year 2009 ending February 28, 2009. Effective December 1, 2008, the Company adopted the Canadian dollar as its reporting currency. This change was made as a result of the Company's de-registration with the SEC in the U.S. in fiscal 2008.

For the first quarter of 2009, OSI Geospatial Inc reported consolidated revenue of $5.7 million, compared to the revenue reported in the first quarter of 2008 of $5.8 million. The Company reported a net loss of $844,000 before taxes and $697,000 after taxes compared with a net loss of $635,000 before taxes and a $541,000 after taxes in the first quarter of 2008.

"We remain on track in developing key opportunities in all of our markets and we are committed to achieving positive results in 2009." said Ken Kirkpatrick, president and CEO. "While results for this quarter were similar to the same period last year, we are confident that this activity will pick up in the second quarter and continue throughout our fiscal year."

Business Highlights for the First Quarter:

- Signing a $1.3 million software upgrade contract with the Australian Navy.

- Signing more than $2.0 million in follow-on contracts with existing customers.

- Being selected to provide warship navigation systems for the Turkish Navy MILGEM Corvette new build program.

- Closing a strategic partnership with a major U.S. defence contractor to pursue the soldier modernization program market.

- Qualifying as a prime contractor to participate in the U.S. Army Program Executive Office for Simulation Training and Instrumentation (PEOSTRI) Omnibus Contract (STOC II program).

- Being awarded approximately $1.8 million in mapping contracts.

- Achieving IMO Type Approval for the latest version of the company's navigation system, ECPINS 5.3.

- Successfully delivering, installing and sea testing our small boat command and control (SBC2) systems for the Canadian Navy Port Security Unit.

Conference Call

OSI Geospatial will present the results from the 2009 first quarter at 5:00PM Eastern Time (2:00 PM Pacific Time), Thursday, April 9, 2009. To listen to the conference call live by telephone, dial +1-800-319-4610 for participants in North

America or +1-604-638-5340 for Lower Mainland and international participants approximately ten minutes before the call is scheduled to begin. A telephone playback will be available beginning approximately one hour after the call. Dial +1-800-319-6413 for North American callers or +1-604-638-9010 for Vancouver and international callers. Enter access code 7826#. The telephone replay will be available for three months. For the live webcast, please go to http://services.choruscall.com/links/osi081009.html. A replay version of the webcast can be accessed for three months on the company's investor website at http://www.osigeospatial.com/investors/default.htm.

About OSI Geospatial

OSI Geospatial Inc. delivers advanced marine navigation and command and control systems that provide shared real-time situational awareness for military, safety and security applications. Our products and services enable our customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. This capability provides our customers with enhanced operational performance, safety and security through shared real-time situational awareness. OSI Geospatial systems and software are in use by military, government and commercial customers around the world. The company is publicly traded on the Toronto Stock Exchange as OSI. For additional information please visit www.osigeospatial.com

Forward-Looking Statements

This press release contains forward-looking statements and information which reflect the current view of OSI Geospatial Inc ("OSI") with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and OSI's actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect OSI's financial results are detailed in disclosure documents filed from time to time with the applicable Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Copyright (C) 2009 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. IGEN and C3CORE are registered trademarks of CHI Systems Inc., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.



OSI Geospatial Inc.
Consolidated Balance Sheets (unaudited)

February 28 November 30
In thousands of Canadian dollars 2009 2008
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Assets

Current assets
Accounts receivable and unbilled revenue $8,980 $11,183
Inventory 1,049 1,407
Prepaid expenses and deposits 620 388
Current portion of future income tax asset 480 338
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11,129 13,316

Deferred development costs 460 437
Future income tax asset 865 823
Equipment and furnishings 1,680 1,735
Intangible and other assets 677 732
Goodwill 10,547 10,269
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$25,358 $27,312
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Liabilities
Current liabilities
Bank indebtedness $1,862 $2,015
Accounts payable and accrued liabilities 3,126 4,519
Income taxes payable 15 9
Unearned revenue 294 256
Current portion of deferred rent 37 41
Current portion of capital lease obligations 93 88
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5,427 6,928

Deferred rent 294 347
Capital lease obligation 123 156
Unearned revenue 262 290
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6,106 7,721
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Shareholders' Equity
Issued and outstanding
Class A, Series A preference shares 30 30
Class B, Series 2 preference shares 5,731 5,731
Common shares 29,748 29,748
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35,509 35,509
Warrants 4,898 4,898
Contributed surplus 2,674 2,674
Accumulated deficit (24,821) (24,121)
Accumulated other comprehensive income 992 631
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19,252 19,591
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$25,358 $27,312
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OSI Geospatial Inc.
Consolidated Statements of Loss and Deficit (unaudited)

Three months ended
In thousands of Canadian dollars, February 28 February 29
except share related data 2009 2008
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Revenue
Marine systems $2,098 $2,506
Land and air systems 3,367 2,806
Mapping 259 503
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5,724 5,815

Cost of sales 4,005 3,633
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Gross profit 1,719 2,182
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Expenses (income)
General and administrative 1,209 1,245
Sales and marketing 813 914
Engineering 301 262
Amortization 113 150
Interest expense 31 34
Interest income - (3)
Foreign exchange loss - 35
Loss on disposal of intangibles and other assets - 28
Technology Partnerships Canada royalty 96 152
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2,563 2,817
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Net loss before income taxes (844) (635)
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Future income tax (recovery) (152) -
Current income tax expense (recovery) 5 (94)
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Income tax (recovery) (147) (94)
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Net loss $(697) $(541)
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Accumulated deficit, beginning of period (24,121) (22,420)
Dividends on Class B preference shares (3) (332)
Tax expense on dividends - (39)
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Accumulated deficit, end of period $(24,821) $(23,332)
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Net loss attributable to common shareholders $(853) $(697)
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Loss per share - basic and diluted $(0.02) $(0.01)

Weighted average number of common shares
outstanding - basic and diluted 46,956,439 46,956,439




OSI Geospatial Inc.
Consolidated Statements of Cash Flows (unaudited)

For the three months ended
February 28 February 29
In thousands of Canadian dollars 2009 2008
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Cash flows from operating activities
Net loss for the period $(697) $(541)
Items not affecting cash
Amortization 161 200
Loss on disposal of equipment and furnishings - 29
Stock-based compensation - 5
Future income taxes (152) -
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(688) (307)
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Changes in non-cash operating
working capital items
Accounts receivable 2,014 3,140
Inventory 356 (32)
Prepaid expenses and deposits (220) (300)
Accounts payable and accrued liabilities (1,331) (1,838)
Income taxes payable 5 (91)
Deferred rent (10) (12)
Unearned revenue 10 (33)
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824 834
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136 527
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Cash flows used in investing activities
Development costs deferred (18) (87)
Additions to equipment and furnishings (30) (72)
Additions to leaseholds - (9)
Additions to intangibles and other assets (2) (55)
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(50) (223)
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Cash flows used in financing activities
Repayment to operating line of credit (66) (9)
Repayment of capital lease obligation (14) -
Class B preference share dividends
declared and paid (3) (368)
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(83) (377)
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Effect of foreign exchange on cash balances (3) 73
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Decrease in cash and cash equivalents - -

Cash and cash equivalents - beginning of period - -
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Cash and cash equivalents - end of period $- $-
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