Trading Symbol: JTI
RICHMOND HILL, ON, Sept. 2 /CNW/ - JITE Technologies Inc. ("Jite" or the
"Company") announces today that it has filed its interim financial statements
and management's discussion and analysis (MD&A) for the three and six month's
period ending June 30, 2008. The detailed financial statements and MD&A can be
found on www.sedar.com.
In the second quarter, The Company continually monitors and evaluates
business and competitive conditions that affect the Company's market segment,
in particular, the effect of the slowdown in the US economy. Approximately 50%
of the Company's sales are sold to companies that manufacture household
security systems; the melt down of the US housing market has had a direct
impact in the Company's sales, correspondingly, the Company during the quarter
updated its strategic plans to focus more on big customers and the Chinese
Second quarter financial results:
Total sales for the quarter were $4.65 million. This was a decrease of
$0.3 million (or 4.5%) from $4.87 million in the same period last year, but an
increase of $0.4 million (9.5%) from $4.2 million in the previous quarter. The
sequential revenue increase is mainly attributable to higher sales from
Chinese markets and higher prices raised in this quarter.
Gross profit margin for the quarter was 20.9% and was equivalent to the
previous quarter, but declined 6.2% from 27.1% in the same period last year.
The year-over-year margin decline was due primarily to increase of raw
materials and labour cost.
Operating expenses for the quarter were $0.92 million compared to
$0.89 million in the previous quarter and $0.92 million in the same period
last year. Operating expenses as a percentage of sales was 19.7% and compared
to 21% in the previous quarter and 18.8% in the same period last year.
Net income for the quarter was $104,000, or $0.001 per share, compared to
$389,000, or $0.004 per share, for the same period last year. The decrease
primarily reflects the decrease in both sales and gross margin discussed
Year-to-date financial results
For the first six months of 2008, total revenues were $8.88 million,
compared with total revenues of $9.47 million in the same period last year.
Total operating expenses for the first six months of 2008 were $1.8 million,
compared with $1.9 million in the same period last year. Net income was
$144,000 for the first six months of 2008, compared with $697,000 for the same
period last year.
"We are continuing to suffer due to the slowdown in US economy",
Mr. Henry Tse, Jite's Chief Financial Officer. "The decline in both sales and
gross margin reflects the dramatic impact of the reduced demands from US
market, together with raw material cost increases, and appreciation of
Chinese RMB against Canadian dollars (4% on year-over-year basis). We are
determined to be successful in meeting these challenges by looking for new
markets and will continue to direct all of our efforts to maximize sales
growth while controlling costs to increase cash flow and profitability."
JITE designs and manufactures electronic and electrical connection
devices for security, industrial control, automation, telecommunication, and
power supply industries. JITE is headquartered in Toronto, Canada and carries
out research and manufacturing operations in Shenzhen China at its ISO 9001
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize. The TSX Venture Exchange Inc. has not
reviewed and does not accept responsibility for the adequacy or accuracy of
For further information:
For further information: JITE Investor Contact: Henry Tse, Chief
Financial Officer, Tel :(416) 456-7803; www.jite.com/(JTI.)