PowerTech reports its second quarter results



    TERREBONNE, QC, May 28 /CNW Telbec/ - PowerTech Corporation Inc.
("PowerTech") (PWB on the TSX Venture Exchange) reports revenues of $126,105
for its second quarter ended March 31, 2009, which compares to revenues of
392,154 for the corresponding period last year. The unaudited net loss for the
quarter amounted to $456,057 ($0.01 per share) which compares with a net loss
of $553,088 ($0.01 per share) for the same period last year.

    
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    Selected financial information

    For the three and six-month periods ended March 31(*)
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                                                           First six months
                                  Q2/2009    Q2/2008       2009         2008
                                ---------------------------------------------

    Revenues                      126,105    392,154    549,164      477.086
    Net Loss                     (456,057)  (553,088)  (781,227)  (1,124,598)
    Basic and diluted loss
     per share                      (0.01)     (0.01)     (0.02)       (0.03)

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    (*) unaudited

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    Additional Highlights

    - Year to-date-revenues increased by 15% when compared to the same period
      last year;

    - Gross margins for the quarter improved to 24% of revenues compared to
      16% for the same period last year and to 37% for the six-month period
      ended March 31 compared to 14% for the same period last year;

    - First 5 unit orders received from its Middle-East distributor; delivery
      was made in the third quarter of FY2009. Many additional orders from
      this distributor are expected in the short term also for delivery to
      Saudi Arabia where major infrastructure projects are being undertaken;

    - First formal orders also for 5 units were received from Montabert and
      deliveries are scheduled in the third quarter of the current fiscal
      year; and

    - Aggressive restructuring and excellent performance on overall costs
      control resulted in a reduction of quarterly and year-to-date net
      losses as well as the company's burn rate which also suits current
      economic conditions;

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    Mr. Carol Murray, President and Chief Executive Officer of PowerTech
stated: "Despite very challenging market conditions translating into revenue
volatility, we consider being well positioned and remain optimistic but
cautious as we continue to control operating costs as well as being ready for
the anticipated boom in infrastructure spending locally and around the world."

    Six-month period ended March 31, 2009

    In comparison with the first six months of last year, revenues amounted
to $549,164 compared to $477,086 or a 15.1% increase.
    Gross margins for the six-month period ended March 31, 2009 were 36.9 %
compared to 14.4 % for the same period last year and mainly reflect higher
revenues and a decrease in manufacturing costs. Administrative expenses
decreased 17% to $412,183 compared to $496,889 which is mostly explained by a
reduction of overhead costs. Selling and commercialisation expenses decreased
63% from $331,395 for the six-month period ended March 31, 2008 to $122,671
for the comparable period of 2009. Development expenses increased the
six-month period ended March 31, 2009 amounting to $51,490 compared with
$35,180 for the corresponding period last year.

    Outlook

    The Company's continues to focus on the expansion of its distribution
network, including the successful deployment of the series 5000 PicBucket(R)
and the rollout of the Montabert agreement in Europe which will complement its
existing agreement in NorthAmerica with NPK. The Company continues to closely
monitor its cash position and to maintain a capital structure that will enable
it to fulfill its business plan, including the commercialisation of its
products. The Company is currently exploring financing opportunities aiming to
provide sufficient financial resources for an additional 12-24 months.

    Additional financial details about the quarter and six-month period ended
    March 31, 2009

    The financial information in regards to the quarter and six-month period
ended March 31, 2009 should be read in conjunction with the financial
statements and the interim management and discussion analysis dated March 31,
2009. These documents are available at www.sedar.com

    Grant of options to Management and Board of Directors members

    Today, the Board of directors of PowerTech granted to members of
management 160,000 share purchase options in compensation for previous salary
reductions. The strike price of these options was set at $0.12 representing
the closing price of the company's common shares on the TSX Venture Exchange
on May 28, 2009. The expiry date of these options is in five years, on May 29,
2014. 20% of these options can be exercised after the first year and 10% for
each of the following quarters after the first year.
    Additionally, 125,000 share purchase options were granted to members of
the Board of Directors. These options vest equally over the next four
quarters.

    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. We disclaim any intent or obligation
to update publicly these forward looking statements, whether as a result of
new information, future events or otherwise.

    "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 PowerTech (www.powertechci.com)

    PowerTech 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.
    PowerTech'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. Powertech's products are marketed
under the PicBucket(R) and PicHammer(R) names as well as under world renowned
private label brands thru OEM agreements with large manufacturers.

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




For further information:

For further information: Mr. Carol Murray, President and Chief Executive
Officer, PowerTech Corporation Inc., (450) 963-6400 #101, Fax: (450) 963-4411,
carol.murray@powertechci.com; Mr. Marc Jasmin CMA, Partner, Jasmin-Dumais
Financial Communications Inc., Investor Relations, (514) 231-2360, Fax: (514)
221-3762, marc@comjamais.com

Organization Profile

POWERTECH CORPORATION INC.

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