Business
CON-SPACE Announces Year-End Profits
CON-SPACE Announces Year-End Profits.
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\n\nTSX-Venture: Tier 1\nSEC Exemption No.82-3378\n\nRICHMOND, BC, Oct. 18 /CNW/ - CON-SPACE Communications Ltd. (CCB - TSX\nVenture), (http://www.con-space.com), a world leader in specialized voice\ncommunication products, today announced fourth quarter and full-year financial\nresults for the period ended June 30, 2006.\n\"We ended the 2006 fiscal year on a strong up note,\" said Jim Swanson,\nChairman of CON-SPACE. \"Our new products and dynamic distribution network\nhelped us achieve significant sequential growth in fourth quarter results, and\nwe ended the year with a strengthening order backlog. Although results for the\nquarter and the fiscal year were below 2005 levels due to funding diversions\nin the US emergency response market and the negative impact of a stronger\nCanadian dollar, we continued to outperform our industry peers and ended the\nyear with a profit.\"\n\"Moving into 2007, we are seeing early signs of an improvement in our\ncore market for emergency response kits, and we are continuing our push into\nnew markets and segments. We have achieved an excellent response to our\ninnovative voice amplifier units designed for hospital emergency\ndecontamination tents or rooms for processing patients with SARS, Bird Flu, or\nBio-chemical contamination. As the year progresses, we will be launching\nadditional new products including specialized headsets designed for police,\nswat team, and military applications. We believe this combination of new\nproducts, focused marketing efforts and improving market conditions will put\nus on the path to a sustained business recovery.\"\n\nFourth Quarter Results\n\nFor the three months ended June 30, 2006, the company achieved sales of\n$1.5 million, up 32.2% from the third quarter of 2006, but 36.4% below Q4\n2006. Gross margin was $817,468 or 54.6% of sales, compared to $1,531,386 or\n65.2% of sales in the Q4 2005 period.\nFourth quarter operating expenses declined to $0.84 million from\n$0.94 million in Q4 2005, however as a percentage of sales, operating expenses\nincreased to 57.5% from 40.9%. This reflects the change in allocation and\nestimate for overhead application between expense categories and cost of goods\nsold due to a facility expansion completed in September 2005.\nNet income for the fourth quarter of 2006 was $0.01 million, or $0.00 per\nshare. This compare...