Business
CON-SPACE Announces 1st Quarter Results
CON-SPACE Announces 1st Quarter Results.
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\n\nRICHMOND, BC, Nov. 30 /CNW/ - CON-SPACE Communications Ltd. (CCB - TSX\nVenture), (http://www.con-space.com ), a world leader in specialized voice\ncommunication products, today announced 2007 first quarter financial results\nfor the period ended September 30, 2006.\n\"CON-SPACE ended its first quarter for fiscal 2007 with an increasing\nsales backlog,\" said Jim Swanson Company Chairman. \"Though it may be a little\nearly to forecast the balance of the year's performance we are seeing a\nresurgence of OEM business and an increasing level of funding from Home Land\nSecurity. Looking back the effects of Katrina appear to have lasted a full\n12 months and now are dissipating as business recovers. Regardless, we remain\nvery positive regarding the balance of this fiscal year and next due to our\nnew products and expansion into the communications market.\"\n\nFirst Quarter Results\n\nFor the three months ended September 30, 2006, the Company achieved sales\nof $1.35 million, 81.0% of the first quarter of 2006, compared to\n$1.67 million for Q1 2006. Gross margin was $582 thousand or 43.1% of sales,\ncompared to $721 thousand or 43.3% of sales in the Q1 2006 period.\nFirst quarter expenses increased to $587 thousand from $443 thousand in\nQ1 2006, and as a percentage of sales, operating expenses increased to 43.5%\nfrom 26.6%. A portion of the increase was related to a lower in sales volumes,\nforeign exchange losses and rising insurance premiums, however the balance\nresults from investment in new sales personnel and increased product\ndevelopment costs which are expected to produce positive results for the\nCompany.\nNet loss for the first quarter of 2007 was $5 thousand, or $0.00 per\nshare. This compares to net earnings of $173 thousand or $0.02 per share\nduring the same quarter in 2006.\n\nOutlook\n\nThe Company expects to launch additional new products including\nspecialized headsets designed for police, swat team, and military applications\nas the year progresses. Although first quarter is a seasonally slower period\nfor CON-SPACE, the company remains very comfortable with its planned growth\nfor this year.\nWith no long-term or short term debt and over $1.65 million in cash, the\nCompany is moving forward with numerous growth plans including acquisition\nactivities and fully expects a profitable growth year to emer...