Business
CON-SPACE Announces 27% Sales Increase during 2nd Quarter
CON-SPACE Announces 27% Sales Increase during 2nd Quarter.
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\nTSX-Venture: Tier 1\n\n\nSEC Exemption No. 82-3378\n\n\nRICHMOND, BC, March 2 /CNW/ - CON-SPACE Communications Ltd. (CCB - TSX\nVenture), (http://www.con-space.com ), a world leader in specialized voice\ncommunication products, today announced 2007 Second quarter financial results\nfor the period ended December 31, 2006.\n\n\n"CON-SPACE ended its Second quarter for fiscal 2007 with a 26.6% increase\nin sales over that of the comparative quarter last year," said Jim Swanson,\nCompany Chairman. "This result gave the Company the highest 2nd quarter sales\nplus the highest first half sales we have seen. Our increasing performance and\nthe addition of our new President, Mike Thirlwell, continues to give us very\npositive feeling regarding the balance of this fiscal year."\n\n\nResults\n\n\nSales in the second quarter totaled $1,593 k representing a 26.6%\nincrease over the $1,258 k in the comparative quarter during the prior year.\nDecember sales were very strong and the increased activity has carried through\ninto the third quarter.\n\n\nCost of goods sold rose slightly to 58.5% year to date versus 57.6% last\nyear. This resulted in a gross margin of $1,221 k or 41.5% for the first six\nmonths compared to $1,240 k or 42.4% for the respective prior period.\n\n\nMarketing and Promotion expenses are up 36.4% over the prior year while\nInsurance costs also increase $14 k from the prior year. Netted in expenses is\nan exchange loss of $136 k related to a twelve month forward foreign exchange\ncontract that was initiated to mitigate currency risk.\n\n\nEarnings before interest, income taxes, depreciation and amortization\n(EBITDA) for the quarter was $108 k ($147 k ytd) compared to $74 k or ($375 k\nytd) in the prior year.\n\n\nNet earnings for the quarter ended at $82 k ($77 ytd) up 317% over the\nprior year's second quarter's $20 k ($192 k ytd).\n\n\nOutlook\n\n\nThe outlook for the second half of Fiscal 2007 is positive as the Company\nwill be launching its new Armory Product Line at the end of the third quarter.\nThis product launch will officially mark the CON-SPACE's entrance into the\nbroader communication market. The Company is currently in the process of\nbuilding a new distribution channel to service that market. The new line is\nexpected to be well-received as CON-SPACE has built a very strong reputa...