CALGARY, March 24 /CNW/ - Galvanic Applied Sciences Inc. (GAV: TSX-V) announces the following results for its period ended January 31, 2010 and January 31, 2009.
Three Months Ended
Revenue 3,264,000 3,763,000
Gross margin 1,301,000 1,414,000
Net earnings before income taxes and
reorganization costs 160,000 247,000
Reorganization costs 44,000 -
Net earnings 116,000 247,000
Net earnings per common share 0.01 0.02
For the three-month period ended January 31, 2010 the Company reported net earnings of $116,000 or $0.01 per common share on revenues of $3.2 million as compared to net earnings of $247,000 or $0.02 per common share on revenues of $3.8 million in the corresponding prior period. This decline in net earnings after tax was largely due to the impact of lower margins, reorganization costs necessary to facilitate a new distribution agreement and foreign currency losses which offset improvements in selling, marketing and general and administrative expenses.
The outlook for the fourth quarter indicates revenues will continue to lag last year's levels based on existing orders and goods shipped to date. Quotation activity has slowed in the quarter while outstanding quotations from previous quarters languish as pending but not yet awarded. These quotes are expected to become orders eventually which could provide some incremental revenue in the quarter. The Company's Balance Sheet remains in excellent condition with $3.2 million of cash and no debt which will position the Company for growth as opportunities arise.
Galvanic Applied Sciences Inc. is an innovative electronic technology Company that develops instrumentation and manufactures equipment for the natural gas processing and distribution markets and liquids process markets. Products include analyzers for sulfur and BTU measurement in gases, electronic volume correctors and recorders used in combination with commercial natural gas meters, and tytrators, viscometers, suspended solids and turbidity analyzers for on-line liquid analysis.
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 the release.
Forward Looking Statements: This news release contains forward looking statements based on management's current expectations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Galvanic at the time of preparation, may prove to be incorrect. The forward looking statements contained in this news release are made as at the date of this news release and, except as required by applicable securities laws, Galvanic does not undertake any obligation to update publicly or otherwise any such statements.
SOURCE Galvanic Applied Sciences Inc.
For further information: For further information: S. Grant Reeves, Chief Executive Officer, (403) 258-9709 or Helen Cornett, Chief Financial Officer, (403) 258-9704, Email: firstname.lastname@example.org, Website: www.galvanic.com