Q1-02 US GAAP - MKS

Mortice Kern Systems Inc.
Consolidated Statements of Operations
(Dollar Amounts in US, In Thousands, Except Per Share Data)
US GAAP
Three Months Ended July 31
2001 2000
(Unaudited)
Revenue:
License ......................................................................................... $ 5,101 $ 4,917
Service .......................................................................................... 1,543 1,593
Total revenue ..................................................................................... 6,644 6,510
Cost of revenue:
License ......................................................................................... 143 247
Service .......................................................................................... 1,305 1,456
Total cost of revenue .......................................................................... 1,448 1,703
Gross profit ....................................................................................... 5,196 4,807
Operating expenses:
Sales and marketing ....................................................................... 3,581 5,536
Research and development .............................................................. 2,025 1,900
General and administrative .............................................................. 957 1,379
Amortization of intangibles ............................................................... 64 272
Write down of intangibles ................................................................ – 8,091
Reorganization expense .................................................................. – 668
Total operating expenses ................................................................... 6,627 17,846
Loss from operations ......................................................................... (1,431) (13,039)
Interest income - net .......................................................................... 24 27
Loss before income taxes .................................................................. (1,407) (13,012)
Income tax recovery ........................................................................... – 537
Net loss ............................................................................................ (1,407) (12,475)
Accumulated deficit, beginning of period .............................................. (33,244) (6,589)
Accumulated deficit, end of period ....................................................... $ (34,651) $ (19,064)
Loss per share:
Basic and diluted ............................................................................ $ (0.04) $ (0.72)
Weighted average number of shares outstanding ............................... 32,169 17,438
See accompanying Notes to Consolidated Financial Statements prepared in accordance with accounting
principles generally accepted in the United States of America