Power Tech reports fourth quarter 2009 results

Cost reduction iniatives help reduce operating losses by 47,2%

TERREBONNE, QC, Jan. 21 /CNW Telbec/ - For the fisca1 year ended September 30, 2009, Power Tech Inc. "Power Tech" (PWB on the TSX venture exchange) reports revenues of $951,551, which compares to $1,455,279 for the same period last year. The audited net loss for the year amounts to $ 1,573,799 ($0.04 per share) compared to a net loss of $3,066,529 ($0.08 per share) for the corresponding period, last year.

For the fourth quarter of the fiscal year, ended September 30, 2009, Power Tech's revenues amount to $171,549 which compares to revenues of $438,188 for the same period last year. The net loss for the quarter amounts to $375,203 ($0.01 per share) which compares to a net loss of $1,378,268 ($0.03 per share) for the corresponding quarter of the fiscal 2009 year. The net loss for the fourth quarter of the 2008 fiscal year ended September 30, 2008 included non-cash and non-recurring write-offs and provisions relating to obsolete or slow moving inventory for a gross amount of $625,000.

    
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------

    Selected financial information
      For the three-month and fiscal year ended September 30,
      ----------------------------------------------------------------------
                             Q4/2009*   Q4/2008*      2009         2008
      ----------------------------------------------------------------------
      Revenues               171,549      438,188      951,551    1,455,279
      Net Loss              (375,203)  (1,378,268)  (1,573,999)  (3,066,529)
      Basic and diluted
       loss per share          (0.01)       (0.03)       (0.04)       (0.08)
      * unaudited
      ----------------------------------------------------------------------

    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
    

Additional fiscal year highlights

    
    - Power Tech signs a letter of intent to purchase all outstanding shares
      of a construction, and agricultural wear and tear parts manufacturer
      wishing to seize the opportunities created by a large number of
      regional niche players in Northeast Canada, the transaction would bring
      potential operational and business development synergies.

    - Power Tech completes a private placement financing for a gross amount
      of $ 648,250.

    - Significant commercial milestones attained:

      - First units of Series 5000 PicBucket(R) sold in North America
        targeting 20 to 30 ton excavators, one of the largest and most
        lucrative markets.

      - First deliveries to our European OEM partner, Montabert S.A.S
        complementing orders from our North-American OEM partner, NPK
        Construction Equipment.

      - Ten units sold in Saudi Arabia, through a local distributor offering
        a technological showcase that will allow for the development of the
        large Saudi Arabian and Persian Gulf markets.

    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
    

Mr. Carol Murray, President and Chief Executive Officer of Power Tech said: "This most recent fiscal year demonstrated Power Tech's versatility in adapting to challenging market conditions, as we experienced the worst business environment of our short history. Acting decisively and proactively, Power Tech completed the realignment of its sales and marketing efforts by reducing its cost structure, and the deployment of the new series 5000 PicBucket(R) in North-America and of other product lines in Europe and the Middle East. Power Tech was also proactive in identifying new business opportunities, and through a strategic merger and acquisition program is working on shaping a much stronger and diversified company."

    
    Additional financial details about the Fiscal year ended September 30,
    2009
    

Additional financial details in regards to the fiscal year ended September 30, 2009 will be available in the financial statements and the Management's Discussion and Analysis which will be found at www.sedar.com within the regulatory filing requirements.

Outlook

The Company's current focus is to successfully complete the purchase of all outstanding shares of a construction, and agricultural wear and tear parts manufacturer. The company believes it can clearly benefit by consolidating regional niche players in Northeast Canada which would allow for the elimination of many duplicate products and the potential for operational and business development synergies. This acquisition could create a springboard for future acquisitions that would quickly translate into an improved financial profile.

The Company's immediate goal is to secure the necessary financing to complete this transaction. As such there are no guarantees that such a financing can be completed, nor any guarantees it can be completed in a timely manner. Management is however dedicating every necessary effort to ensure the completion of this transaction as soon as possible.

Overall the Company wishes to fund its capital requirements mainly by way of cash flows generated from operations and, if necessary through additional capital. The Company's ability to generate sufficient short-term and long-term capital depends on various factors, including general economic conditions, technological advancements, market acceptance of its products and competition. Generally speaking, there can be no assurance that the Company will generate short and long-term capital under terms and conditions satisfactory to the Company.

Disclaimer in regards to Forward looking statements disclaimer

Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

About Power Tech (www.powertechci.com)

Power Tech is the only company in the world that manufactures and commercializes percussion technology with interchangeable tools and accessories for the construction, demolition and military industries.

Power Tech's percussion technology is a technological breakthrough that combines the power of a hydraulic hammer with the stripping force and manoeuvrability of a conventional bucket. Power Tech's products are marketed under the PicBucket(R) and PicHammer(R) names as well as under world renowned private label brands through OEM agreements with large manufacturers.

The trademarks PicBucket(R), PicHammer(R) and the Power Tech logo are registered trademarks of Power Tech Canada Inc.

%SEDAR: 00020841EF

SOURCE POWERTECH CORPORATION INC.

For further information: For further information: Mr. Carol Murray President and Chief Executive Officer, Power Tech Corporation Inc., (450) 963-6400 #101, Fax: (450) 963-4411, carol.murray@powertechci.com

Organization Profile

POWERTECH CORPORATION INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890