T S Telecom Ltd. ("TOM") Annual Results for Fiscal year 2007



    TORONTO, Aug. 22 /CNW/ - T S Telecom Ltd. (the "Company") today announces
its annual results for the fiscal year ended March 31, 2007. The Company and
its subsidiaries (the "Group") reported a total revenues of $3.2 million and
net loss of $1.3 million as compared to a total revenue of $3.6 million and a
net loss of $1.2 million in previous year.

    
    Financial Highlights

    For the year ended March 31
    (in thousands of Canadian dollars                         2007      2006
     except loss earnings per share amounts)                     $         $

    Revenue                                                  3,213     3,597
    Gross profit                                             1,803     2,062
    Loss before tax & non-controlling interest              (2,156)   (1,809)
    Net loss for the year                                   (1,281)   (1,219)
    Loss per share - basic                                (6 cents) (6 cents)
                                                          --------- ---------
                                                          --------- ---------
    

    BUSINESS REVIEW

    The Group continued to operate under increasing competition from domestic
telecom manufacturing suppliers in mainland China. While the Group has
competed by offering customized versions of our base station monitoring
systems to suit specific customer needs, the intensified competition and slow
down in business activity due to continued restructuring of the
telecommunication bureau and policies had adversely affected the Group's
business momentum in the market place.
    The Group has conditionally agreed to dispose of the subsidiaries
engaging in the assembly, distribution and integration of telecommunications
products which have been operating at a loss for the past few years and are
not expected to generate any profit in the near future. To avoid duplication
and accumulation of marketing costs by using multiple sales vehicle and
further depletion of the Group's resources in telecom manufacturing, the
Directors of the Company consider it is best for the Group to dispose of those
loss-making subsidiaries and concentrate their effort on telecom trading
businesses.

    The Business of Telecommunications Products

    Business of telecommunications products from Mainland China accounts for
approximately 98% of the Group's sale for the fiscal year ended 31st March
2007.
    During the year, the Group continued to encounter pressure from customers
demanding for concession in contract terms including lower pricing and longer
payment period, causing the Group to take a longer time to close and sign
contracts. It is quite clear that the business environment of the telecom
monitoring equipment industry in China had become more unfavorable and
competitive. The subsidiary, T S Telecom Technologies Limited (TST
Technologies), of the Group has conditionally agreed to dispose of the
subsidiaries engaging in the assembly, distribution and integration of
telecommunications products which have been operating at a loss for the past
few years and are not expected to generate any profit in the near future. To
avoid duplication and accumulation of marketing costs by using multiple sales
vehicle and further depletion of the Group's resources in telecom
manufacturing, the Directors (including the independent non-executive
directors) of TST Technologies consider it is best for the Group to dispose of
those loss-making subsidiaries to Mr. Lau See Hoi and concentrate their effort
on telecom trading businesses. The Company has conditionally agreed to dispose
of the loss-making subsidiaries to Mr. Lau See Hoi.

    The Business of Gas Turbine Generators

    During the year, there is no sale of gas turbine generator, even though
the Group continued to implement aggressive marketing strategies to promote
the sale of gas turbine generators in the telecom, petroleum and other
industries. The Company has conditionally agreed to dispose of the loss-making
subsidiaries to Mr. Lau See Hoi.

    The Business of Bio-technology Products

    During the year, there was an insignificant amount of sale of
biotechnology products, even though the Group has been heavily promoting the
products in the PRC and North American market. The Company has conditionally
agreed to dispose of the loss-making subsidiary to Mr. Lau See Hoi.

    RESULTS OF OPERATIONS

    For the fiscal year ended 31st March 2007, the Group reported a total
sale of $3.2 million and net loss of $1.3 million as compared to a total sale
of $3.6 million and net loss of $1.2 million in the previous year.
    Our gross margin was 56.1% for the current fiscal year as compared to a
gross margin of 57.3% for the last fiscal year.
    During the current fiscal year, the Group continued to reduce expenses by
reducing the headcounts and controlling travel and entertainment and office
expenses tightly. This caused a reduction in general and administrative
expenses of 8.6% as compared with the last fiscal year. The net loss position
reflected certain non-cash charges of amortization of $0.2 million, provision
of inventories obsolescence of $0.2 million and bad debt written off of
$0.4 million.
    Research and development costs in fiscal year 2007 increased from $49,000
to $80,000. The amount was directed towards the development of power
monitoring system.
    Interest costs in fiscal year increased from $33,000 to $81,000.
    Share of income of equity investments in this year were $95,000 from an
associated company which made a profit, compared with share of income of
$31,000 last year.
    The gain on disposal of property and equipment was an amount mainly due
to disposal of the properties located in Shenzhen in the current year.
    The interest and sundry income decreased from $298,000 to $238,000.
    The Group net income tax charges for fiscal year 2007 decreased from the
previous year balance of $14,000 to $9,000 in the current year.
    Net loss before tax and non-controlling interest for the year was
$2.2 million, compared to the loss $1.8 million last year.
    The net loss after tax and non-controlling interest for the year was
$1.3 million or loss per share of 0.06, compared to the net loss of $1.2
million or loss per share of $0.06 last year.

    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein.

    %SEDAR: 00003917E




For further information:

For further information: Cindy Lau, Director of T S Telecom Ltd., (905)
470-2282

Organization Profile

T S TELECOM 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