RICHMOND HILL, ON, June 2 /CNW/ - JITE Technologies Inc. ("Jite") (TSX
Venture Exchange: JTI) announces today that it has filed its interim financial
statements and management's discussion and analysis (MD&A) for the three month
period ending March 31, 2008. The detailed financial statements and MD&A can
be found on www.sedar.com.
During the first quarter, the Company experienced a significant slow down
in customer's orders as a result of a slow down 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 a direct impact in the Company's sales. Total sales for the quarter were
$4.2 million, a decrease of approximately $0.4 million (or 7.9%), from
$4.6 million in the corresponding quarter of the prior year.
In addition to a slower economy, the costs of material and labor have
gone up significantly. For instance, the labour cost in China has increased by
as much as 50% as a result of the recent labour law reform. Likewise, the
costs of crude oil and fuel have increased by 90% from the same period last
year. As a result, gross profit for the quarter ended March 31, 2008 decreased
by $478 thousand (or 35%), compared with the same period last year. Net income
for the quarter ended March 31, 2008 decreased by $268 thousand (or 87%)
compared with the same period last year.
To counter the downward trend of decreasing gross margin and net income,
the Company has made a price adjustment in the second quarter of 2008 and at
the same time continued its costs cutting efforts. In addition, management is
actively pursuing higher profit margin projects such as private brand
manufacturing for other connector manufacturers who wish to outsource
production to external, lower cost manufacturers.
The statements made in this press release that are not historical facts
contain forward-looking information that involves risk and uncertainties. All
statements, other than statements of historical facts, which address JITE's
expectations, should be considered forward-looking statements. Such statements
are based on management's exercise of business judgment as well as assumptions
made by and information currently available to management. When used in this
document, the words "may", "will", "anticipate", "believe", "estimate",
"expect", "intend" and words of similar import, are intended to identify any
Forward-looking statements. You should not place undue reliance on these
forward-looking statements. These statements reflect our current view of
future events and are subject to certain risks and uncertainties as contained
in the Company's filings with Canadian securities regulatory authorities.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, our actual results could differ
materially from those anticipated in these forward-looking statements. We
undertake no obligation, and do not intend, to update, revise or otherwise
publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof, or to reflect the occurrence of
any unanticipated events. Although we believe that our expectations are based
on reasonable assumptions, we can give no assurance that our expectations will
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
For more information, visit JITE at www.jite.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: JITE Investor Contact: Dr. Gang Chai, Chairman
of the Board, Tel: (416) 366-7420; Henry Tse, Chief Financial Officer, Tel: