MONTREAL, Oct. 25 /CNW Telbec/ - Promatek Industries Ltd. ("Promatek")
(TSX symbol: PMK) announces highlights of its financial results for its first
quarter ended September 30, 2007.
Revenue for the 3-month period ended September 30, 2007 was $1,044,192,
as compared to $1,595,080 for the same period during the previous fiscal year,
representing a decrease of $550,888 or 34%.
Revenue for the 12-month period ended September 30, 2007 was $4,588,139,
as compared to $5,945,715 for the previous 12-month period ended September 30,
2006, representing a decrease of $1,357,576 or 23%.
Net earnings for the 3-month period ended September 30, 2007 were a loss
of $14,330, or nil per share. However, this figure includes special one time
expenses associated with the proposed privatization of Promatek of $222,768.
Net earnings for the 3-month period ended September 30, 2007 excluding these
special one time expenses were $137,438, or $0.04 per share, as compared to
$331,230, or $0.09 per share, for the same period during the previous fiscal
year, representing a decrease of $193,792 or 58%.
Net earnings excluding one time expenses associated with the proposed
privatization for the 12-month period ended September 30, 2007 were $606,943,
or $0.16 per share, as compared to $1,337,958, or $0.36 per share, for the
12-month period ended September 30, 2006, representing a decrease of $731,015
Management believes that the drop in Promatek's financial performance
during the 12-month period ended September 30, 2007 as compared to the
12-month period ended September 30, 2006 is due to several principal factors:
the strength of the Canadian dollar relative to the US dollar, the
continuation of strong competition, the need to increase research and
development in order to ensure that Promatek's products remain compatible with
the latest technologies and a normal dip due to the strength of the 12-month
period ended September 30, 2006. Despite this drop in financial performance,
Promatek has succeeded in continuing to grow its market share and maintaining
its leadership position in its marketplace.
Promatek's shareholders have been mailed a proxy circular detailing a
proposed plan to privatize the company. Shareholders will be asked to approve
this privatization at the Annual and Special Meeting scheduled to be held on
November 5, 2007. Management has released these financial highlights ahead of
its full quarterly report in an effort to best inform its shareholders of
Promatek's most recent financial performance. Promatek intends to file
complete financial statements and its MD&A report in respect of the 3-month
period ended September 30, 2007 on www.sedar.com after its Annual and Special
Meeting should the privatization plan not be approved by its shareholders.
Promatek is a design and manufacturing company whose products serve the
professional charge-back market. Promatek's clients include legal, accounting
and engineering firms that require systems that will automatically capture
expenses related to a client (such as photocopies, faxes, phone calls,
couriers, etc.) and integrate them into the firm's billing system. Promatek's
products are sold under the Copitrak name through selected exclusive dealers
located in the USA, Canada, Europe and Asia. Copitrak is a registered
trademark of Promatek.
FORWARD LOOKING STATEMENTS
Statements contained herein that are not based on historical or current
fact, including without limitation statements containing the words
"anticipates", "believes", "may", "continue", "estimate", "expects", and
"will" and words of similar import, constitute "forward-looking statements".
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, events or developments to
be materially different from any future results, events or developments
expressed or implied by such forward-looking statements. Such factors include,
among others, the following: general economic and business conditions, both
nationally and in the regions in which Promatek operates; changes in business
strategy or development/acquisition plans; environmental exposure; financing
risk; existing governmental regulations and changes in, or the failure to
comply with, governmental regulations; liability and other claims asserted
against Promatek; and other factors referenced in the Promatek's filings with
Canadian securities regulators. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking statements.
Promatek does not assume the obligation to update or revise any
forward-looking statements except as may be required under applicable law.
For further information:
For further information: Mr. Arthur Levine, Chairman of the Board and
Vice-President, Business Development, (514) 737-7747,