TSX-Venture: Tier 1
SEC Exemption No. 82-3378
RICHMOND, BC, March 2 /CNW/ - CON-SPACE Communications Ltd. (CCB - TSX
Venture), (http://www.con-space.com ), a world leader in specialized voice
communication products, today announced 2007 Second quarter financial results
for the period ended December 31, 2006.
"CON-SPACE ended its Second quarter for fiscal 2007 with a 26.6% increase
in sales over that of the comparative quarter last year," said Jim Swanson,
Company Chairman. "This result gave the Company the highest 2nd quarter sales
plus the highest first half sales we have seen. Our increasing performance and
the addition of our new President, Mike Thirlwell, continues to give us very
positive feeling regarding the balance of this fiscal year."
Sales in the second quarter totaled $1,593 k representing a 26.6%
increase over the $1,258 k in the comparative quarter during the prior year.
December sales were very strong and the increased activity has carried through
into the third quarter.
Cost of goods sold rose slightly to 58.5% year to date versus 57.6% last
year. This resulted in a gross margin of $1,221 k or 41.5% for the first six
months compared to $1,240 k or 42.4% for the respective prior period.
Marketing and Promotion expenses are up 36.4% over the prior year while
Insurance costs also increase $14 k from the prior year. Netted in expenses is
an exchange loss of $136 k related to a twelve month forward foreign exchange
contract that was initiated to mitigate currency risk.
Earnings before interest, income taxes, depreciation and amortization
(EBITDA) for the quarter was $108 k ($147 k ytd) compared to $74 k or ($375 k
ytd) in the prior year.
Net earnings for the quarter ended at $82 k ($77 ytd) up 317% over the
prior year's second quarter's $20 k ($192 k ytd).
The outlook for the second half of Fiscal 2007 is positive as the Company
will be launching its new Armory Product Line at the end of the third quarter.
This product launch will officially mark the CON-SPACE's entrance into the
broader communication market. The Company is currently in the process of
building a new distribution channel to service that market. The new line is
expected to be well-received as CON-SPACE has built a very strong reputation
in the safety industry.
The Company is also directing more attention to building its OEM business
in the second half as Management recognized that the manufacturing of private
label products provides significant opportunities to grow the business.
Several potential opportunities have been identified and a marketing plan has
With no long-term or short term debt and over $1.7 million in cash, the
Company is moving forward with numerous growth plans including acquisition
activities and fully expects a profitable growth year to emerge as this year
CON-SPACE is recognized worldwide as the leading designer and
manufacturer of specialized voice communication equipment used by Police,
Fire, Rescue, Government Agencies, Militaries, Municipalities and general
industry. The Company has distribution throughout North America, Great
Britain, Australia, and parts of Asia, South America, and Europe. The Company
also supplies many other manufacturers with Private Labeled products.
This press release is available on the company's official on-line
investor relations site for investor commentary, feedback and questions.
Investors are asked to visit http://www.agoracom.com and view the CON-SPACE
Investor Contact & Information Centre. Alternatively, investors are asked to
e-mail all questions and correspondence to CCB@Agoracom.com
"Forward-looking" statements in this release involve risks and
uncertainties associated with, among others, economic, industry conditions,
technological development, and competition and should not be relied upon as
actual results may differ materially from those projected.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: James L. Swanson, Chairman, CON-SPACE, Tel:
(800) 755-2528 or firstname.lastname@example.org; Investor Relations: AGORACOM Investor
Relations, http://www.agoracom.com or CCB@agoracom.com