SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the Month of: February, 2000
SPECTRUM SIGNAL PROCESSING INC.
(Registrant's Name)
One Spectrum Court, 2700 Production Way, Suite 200
Burnaby, British Columbia, Canada V5A 4X1
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g30-2(b): 82-__________.
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SPECTRUM
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F O R . I M M E D I A T E . R E L E A S E
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RELEASE DATE: February 14, 2000
CONTACT: Karen Elliott, Spectrum - Investor Communications,
604-421-5422
Email: [email protected]
SPECTRUM SIGNAL PROCESSING ANNOUNCES 1999 FOURTH QUARTER
AND YEAR END RESULTS
BURNABY, B.C., CANADA - FEBRUARY 14, 2000 - Spectrum Signal Processing Inc.
(NASDAQ: SSPI / TSE:SSY), a world leader in high performance digital signal
processing (DSP) systems, today announced its 1999 fourth quarter and year end
financial results.
Sales for the fourth quarter ended December 31, 1999 totaled US$ 7,714,000,
compared to sales of US$ 6,503,000 for the fourth quarter of 1998, representing
an increase of 19%. Sales for the year ended December 31, 1999 remained
relatively flat totaling US$26,391,000 compared to sales of US$26,000,000 for
the comparable period in 1998.
Earnings before interest, taxes, depreciation, amortization and one-time charges
("EBITDA" or Cash Earnings), amounted to US$ 428,000 or US$ 0.04 per share for
the fourth quarter of 1999, compared to US$702,000 or US$ 0.07 per share for the
fourth quarter of 1998. EBITDA for the 1999 year end amounted to US$ 1,485,000
or US$ 0.15 per share, compared to US$ 1,014,000 or US$ 0.10 for the
year-earlier period.
Net loss for the fourth quarter of 1999 totaled US$ (471,000) or US$ (0.05) per
share, compared to a restated net loss of US$ (119,000) or US$ (0.01) per share
for the same quarter in 1998. Net loss for the year ended December 31, 1999
totaled US$ (842,000) or US$ (0.08) per share, compared to a restated net loss
of US$ (2,908,000) or US$ (0.29) for the year-ago period.
"The improvement in our 1999 results compared to 1998 is mainly the result of
cost management, whereas the flat top line reflects the need to change our
strategy and business model - which we have begun to address under the new
strategic plan we unveiled last month. The strong EBITDA and positive cash flow
put us in a good financial position to pursue our goals," said Pascal
Spothelfer, President & CEO.
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"Our strategy to focus on growing target markets, signal intelligence, sensor
systems and particularly telecommunications positions us for future growth and
we will measure our strategic success on achieving key milestones in each of
these three business units. While the changes we are making today will
primarily influence our financial results later this year, we are looking
forward to reporting our progress on several key milestones in the weeks and
months ahead," he added.
Spectrum Signal Processing is a world leader in multiprocessing digital signal
processing (DSP) computer systems, designing sophisticated hardware and software
solutions for commercial and defense customers in three key markets - signal
intelligence, sensor systems and telecommunications. Spectrum can be found on
the web at http://www.spectrumsignal.com and is located at One Spectrum Court,
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#200 - 2700 Production Way, Burnaby, B.C., Canada. ph (604) 421-5422; fax (604)
421-1764.
NOTE: The restatement to Spectrum's 1998 results arises from guidance
provided by the Securities and Exchange Commission related to the valuation of
in-process research and development, stemming from Spectrum's acquisition of
Alex Computer Systems in 1998. The adjustments do not have any impact on
Spectrum's net operating cash flow.
Any statements made by the company that are not historical facts are
forward-looking statements that are pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve risks and uncertainties, including the timely development and
acceptance of new products, the impact of competitive products and pricing,
changing market conditions and the other risks detailed in the company's
prospectus and from time to time in other filings. Actual results may differ
materially from those projected. These forward-looking statements represent the
company's judgment as of the date of this release. The company may or may not
update these forward-looking statements in the future.
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<TABLE>
<CAPTION>
SPECTRUM SIGNAL PROCESSING INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
(PREPARED IN ACCORDANCE WITH US GAAP)
3 months ended December 31, 12 months ended December 31,
1998 1999 1998 1999
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(Unaudited)
<S> <C> <C> <C> <C>
Sales $6,503 $7,714 $26,000 $26,391
Earnings (loss) from operations 74 (138) (3,541) (732)
Earnings (loss) before income taxes 21 (135) (3,697) (758)
Net earnings (loss) (119) (471) (2,908) (842)
Earnings (loss) per share
Basic $(0.01) $(0.05) $(0.29) $(0.08)
Diluted $(0.01) $(0.05) $(0.29) $(0.08)
Earnings (loss) per share (excluding IPR&D)
Basic $(0.01) $(0.05) $(0.07) $(0.08)
Diluted $(0.01) $(0.05) $(0.07) $(0.08)
EBITDA 702 428 1,014 1,485
EBITDA per share
Basic $0.07 $0.04 $0.10 $0.15
Diluted $0.07 $0.04 $0.10 $0.15
Weighted average shares outstanding (000's)
Basic 10,036 10,161 9,860 10,077
Diluted 10,036 10,161 9,860 10,077
</TABLE>
Complete financial statements can be found on Spectrum's web site at
www.spectrumsignal.com.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SPECTRUM SIGNAL PROCESSING INC.
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(Registrant)
/s/ Martin C. McConnell
VP Finance & Chief Financial
February 16, 2000 Officer and Secretary
Date: -------------------------- By: ----------------------------------
(Signature)
