Business
CON-SPACE Third Quarter Sales Up 61.5%
CON-SPACE Third Quarter Sales Up 61.5%.
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, May 31 /CNW/ - CON-SPACE Communications Ltd. (TSX-V: CCB),\n(www.con-space.com), a world leader in specialized voice communication\nproducts, today announced 2007 third quarter financial results for the period\nended March 31, 2007.\n\n\n"CON-SPACE ended its third quarter for fiscal 2007 with sales of\n$1,748 k, a 61.5% increase in sales over the $1,105 k for the comparative\nquarter last year," said Jim Swanson, Company Chairman. "Year to date sales\nincreased to $4,728 k, or 17.3% over last year's $4,030 k."\n\n\nCost of goods sold increased to 60.0% year to date versus 57.9% last\nyear. This resulted in a gross margin of $1,889 k for the first nine months\ncompared to $1,698 k for the respective prior period.\n\n\nAt the end of March CON-SPACE launched its new Modular Radio Accessory\nProduct Line at the International Wireless and Communications Exhibition.\nThese high quality products were well received by Distributors with a high\nlevel of interest from potential OEM customers. Management does not expect to\nsee the full benefit of increased sales until into the first quarter of the\nnext fiscal year.\n\n\nOperating expenses show a year over year increase as a percent of sales\nof 4.0%. The majority of the increase, approximately 63.4%, is due to a climb\nin salaries, wage and benefits expense. The increased expenditures for\nsalaries, wages and benefits during the first three quarters of Fiscal 2007\nare a result of a planned growth strategy. The Company has been positioning\nitself for expansion into new markets. To this end, a sales office was opened\nin the U.S. in July 2006 and three salespeople were hired to better service\nthe America market. These new employees have significant knowledge of and\nexperience in the communications industry and are expected to add real value\nas CON-SPACE enters this market with its new product line. Additionally, a new\nsalesman was hired in the UK to continue development in that largely untapped\nmarket.\n\n\nMarketing and Promotion expenses costs have increased by $85 k or 55.3%\nyear to date. This figure includes costs related to the launch of the\nCompany's new Armory product line in March. Research and development\nexpenditures have risen by 51.8% year to date. Almost half of this inc...