November 23, 1999 - ZTEST Electronics Inc. FY1999 Results And Status Update
ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") wishes to announce that the fiscal year ended June 30, 1999 was a very productive one. Total revenue for the year improved to $4,523,671, representing an increase of 23% from 1998 levels. This increase in revenues resulted in the realization of income from operations in the amount of $649,606 as compared to an operating loss of $609,183 in the previous year. The company incurred some non-cash charges totaling $1,327,863 which converted this income from operations into a net loss of $678,257 for the year ended June 30, 1999. The most significant of these is attributable to our investment in Uniqrypt Technologies Inc. as described below.
As reported in our July 28, 1999 press release, ZTEST elected to tender its 1,900,500 common shares of Uniqrypt Technologies Inc. (Uniqrypt) to a 1-for-1 common share take-over bid from Uniqrypt.Com Inc., a Scottsdale, Arizona based company. This take-over bid was valued at $0.07 per share and therefore resulted in a one-time write down of the carrying value of our investment in Uniqrypt as at June 30, 1999 in the amount of $879,215.
Uniqrypt.Com Inc. is seeking to be publicly traded in the U.S. market. ZTEST currently owns 10% of the issued and outstanding shares of Uniqrypt.Com Inc. Uniqrypt's primary product is a line of encryption software programs that are offered for sale via its web site at www.uniqrypt.com.
On August 9, 1999 our strategic partner, Gametele Systems Inc. (Gametele), issued a press release announcing the successful launch of a point of purchase communications network to validate and account for tickets sold for media bingo events. The first phase of the Ontario-wide installation, consisting of 750 remote terminals installed in various vending locations and linked via a central computer, is used in conjunction with the Rainbow TV Bingo game on CHCH TV Channel 11, Hamilton, Ontario, Canada, which is played every Saturday at 11:00 AM Eastern Standard Time. Gametele intends to expand this communications network and to increase the number of media bingo games served by this system. In keeping with this objective, Gametele has recently placed a new order with ZTEST to acquire 2,500 more remote sales terminals with delivery starting in January 2000.
On August 26, 1999 another of our strategic partners, Nexsys Commtech International Inc. (Nexsys), issued a press release announcing the activation of the Nexsys Wireless Home Gateway System in Fort Wayne, Indiana, USA. Nexsys has maintained a focus on developing value added customer services for electric, gas and water utilities. Cost effective communications technology has made its wireless gateway system particularly attractive to utilities as it combines meter data management with revenue generating value added services. The Nexsys Gateway System, which is open standard based, responds to this need for cost effectiveness while also providing an attractive revenue stream through additional consumer focused services. ZTEST is very interested in the expanding wireless communications industry and continues to assist Nexsys by providing additional investment capital as well as ongoing design and manufacturing services.
Med-Minder Enterprises Inc. (Med-Minder), the newest of our strategic partners, has completed focus group testing of its proprietary product. The Med-Minder product is a pocket-sized, programmable electronic device designed to house prescription drugs and to remind the individual to take them in prescribed quantities at the appropriate times. These focus groups are one aspect of market research being conducted in conjunction with a large pharmaceutical company. The results of this market research have been incorporated into the product design and have allowed ZTEST to begin production of a pre-production version of the product. This pre-production version will be distributed to members of a small community during the first quarter of the year 2000, for actual hands-on testing.
As outlined in our press release dated September 15, 1999, ZTEST has filed a Form 20-F Registration Statement with the United States Securities and Exchange Commission (SEC). The Form 20-F allows foreign corporations to register securities with the SEC pursuant to section 12(g) of the Securities Exchange Act of 1934. ZTEST has previously filed "blue sky" documentation in the United States with various states and with Standard & Poor's Corporation for manual listing. ZTEST's registration of its stock in the United States will allow its shares to be solicited and traded by licensed brokers in the United States in compliance with Securities and Exchange Commission Regulations and "blue sky" requirements in various states in the United States.
ZTEST also wishes to announce that its Annual Shareholders Meeting will be held in February 2000. The notice of the meeting, together with the Management Circular will be mailed to all shareholders in due course.
ZTEST offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.
For further information, please contact Mr. James E. Lalonde, Manager, Corporate Development, at (905) 569-3344 or visit our web site at http://www.ztest.com.
The current outstanding capital of ZTEST is 15,890,066 common shares.