Roctest reports revenue growth of 17% and profitability for the 2008 second quarter



    Roctest generated over $1.0 million of EBITDA in the last 12 months.

    ST-LAMBERT, QC, Aug. 5 /CNW/ - Roctest Ltd "Roctest" (TSX: RTT) reports
revenues of $5.97 million for the second quarter ended June 27, 2008, compared
to revenues of $5.09 million for the same quarter in 2007 and the first
quarter of 2008, which represents an increase of 17.1% in both cases. For the
first 6 months of 2008, revenues amounted to $11.07 million, an increase of
10% over the same period in 2007.
    For the second quarter 2008, Roctest's earnings before taxes amounted to
$0.14 million compared to a loss of $0.62 million for the same quarter in
2007. The net earnings amounted to $0.13 million compared to $0.67 million for
the second quarter of 2007, an improvement of over $800,000. For the first 6
months of fiscal 2008, net earnings amounted to $0.03 million compared to a
net loss of $1.37 million for the same period in 2007. Working capital
increased by more than $560,000 since December 28, 2007. Positive cash flows
from operations amounting to $0.64 million were generated during the second
quarter of 2008 while negative cash flows of $0.78 million were generated
during the same period last year.
    The increase in revenues for the second quarter of 2008, when compared to
the same quarter in 2007, is mainly attributable to an increase of 22.5% in
revenues from the civil engineering sector and an increase of 4.2% in revenues
from the industrial sector.
    The improvement in the profitability of the group in the second quarter
of 2008 is mainly attributable to the higher revenues, the improvement in
gross margins by an amount of $0.41 million, a $0.17 million reduction in
sales and administration expenses and a reduction of the exchange loss by an
amount of $0.05 million.
    "In this second quarter, we not only continued to improve our financial
performance but we also won two prestigious contracts as previously announced:
the I35 Minnesota Bridge in the US and the Jinping II dam in China. These
awards clearly recognize two distinctive differentiators for Roctest. First,
the fact that we could provide an integrated solution for the I35 Bridge is
truly unique to Roctest and its complete toolbox of solutions. We have
supplied traditional vibrating wire instruments combined with fiber optic
sensors and the newly released concrete corrosion wireless sensors. As for the
Chinese project, the award of this important project to a westerner clearly
recognizes our cost-competitive position, the consequence of the efforts of
the whole organisation to return to profitable growth." declared Francois
Cordeau, President and Chief Executive Officer of Roctest.
    For the fourth consecutive quarter, the EBITDA for positive; for the
second quarter it amounted to $0.46 million compared to a negative EBITDA of
$0.29 million for the same period last year. For the 12 month period ending
June 27, 2008, Roctest generated over $1.0 million in EBITDA. "All our
subsidiaries performed as expected and allowed Roctest to return to profitable
growth while improving cash flow from operations by more than $1.5 million
compared to the same quarter of 2007" added Francois Cordeau.

    Financial Situation

    On June 27, 2008, Roctest's working capital totalled $2,883,347 compared
to $2,318,982 on December 28, 2007. Cash, cash equivalents and temporary
investments stood at $1,006,080 at the end of the second quarter of 2008,
compared to $670,441 at the end of the previous fiscal year. Roctest's total
assets were valued at $16,666,659 on June 27, 2008, compared to a value of
$17,227,991 on December 28, 2007. The Company's long term debt stood at
$479,179 at the end of the second quarter of 2008, compared to $426,287 at the
end of the previous fiscal year. Due to the fact that the Company did not
respect certain financial ratios with its main banker, an amount of
$1.3 million, representing long term debt instalments which would have been
due beyond 2008, is classified as current, reducing working capital by an
equivalent amount.

    Perspectives

    Since March 20, 2008, the Company uses short-term credit facilities
provided by its new financial partner, Corporation Financière Brome, which
provides credit facilities reaching a maximum of $1 million for Roctest Ltd
and $750,000 for FISO Technologies Inc. With these new credit facilities and
the planned positive EBITDA for 2008, the Company is confident it will have
the financial resources required to maintain its ability to invest in projects
and meet its commitments. "As mentioned last quarter, we are continuing our
discussions with a number of parties to put in place partnerships to allow us
to penetrate new markets and offer innovative complementary solutions" added
Francois Cordeau.

    Forward-looking Statements

    Except for historical information provided herein, the press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events, and as such involve a number of risk factors. Such factors may
include, without excluding other considerations, risks related to foreign
exchange fluctuations, evolution in customer demand for the Company's products
and services, the impact of price pressure from competitors and general market
trends, economic and geopolitical changes. As a result, readers are advised
that actual results may differ from expected results. The Company is not
required to update or revise publicly its forward-looking statements, except
as may be required under applicable law.

    About Roctest

    Roctest designs, manufactures and markets sensors and high-precision
measuring instruments for the civil engineering, energy, healthcare and
industrial control markets. The Company is recognized for its leading-edge
technology, the quality of its technical expertise and its product development
capabilities for challenging and demanding environments. Its products are
mainly sold internationally. The shares of the Company are listed on the
Toronto Stock Exchange under the symbol RTT.

    
    Financial Highlights

                                Three months ended          Six months ended
                              June 27,     June 29,     June 27,     June 29,
                                 2008         2007         2008         2007

    Revenues               $5,967,393   $5,096,399  $11,074,681  $10,057,075
    Gross profit           $2,433,738   $2,022,354   $4,331,326   $3,760,406
    EBITDA (loss)            $456,948    ($287,731)    $688,429    ($608,008)
    Earnings (loss)
     before income taxes     $143,845    ($623,816)     $59,723  ($1,292,845)
    Net earnings (loss)      $130,697    ($676,003)     $31,510  ($1,368,714)
    Net earnings (loss)
     per share                   0.02        (0.12)        0.01        (0.25)
    Weighted average
     number of shares       5,563,071    5,563,071    5,563,071    5,563,071
    





For further information:

For further information: François Cordeau, President and Chief Executive
Officer, Roctest Ltd., Tel.: (450) 465-1113, info@roctest.com,
www.roctest.com

Organization Profile

ROCTEST LTD.

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