Business
Exco Technologies Limited: Second Quarter ended March 31, 2006 - Quarterly Dividend Declared and Normal Course Issuer Bid Renewed
Exco Technologies Limited: Second Quarter ended March 31, 2006 - Quarterly Dividend Declared and Normal Course Issuer Bid Renewed.
About this update from Exco Technologies Limited
[{"type":"text","content":"\n\n\n\n\nTORONTO, April 27 /CNW/ - Exco Technologies Limited (TSX-XTC) today\nannounced results for its second quarter ended March 31, 2006. These results\ninclude a non-cash goodwill impairment charge and inventory provision of $9.7\nmillion associated with the Techmire operation. In addition, the Company\nannounced that a quarterly cash dividend of $0.0125 per share will be paid\nJune 30, 2006 to shareholders of record on June 15, 2006.\nIn the quarter, management reviewed the Techmire operation as this\nbusiness continued to under perform. As a result of this review management\nrecognized that decade high Canadian dollar strength and record high prices\nfor zinc and other raw materials which Techmire machines are designed to\nprocess have significantly impacted the prospects of this business. In order\nto meet these challenges management instituted the following measures in the\nquarter: 1) reduction of staff by approximately 25%; 2) limiting research and\ndevelopment expenditures to products which can be brought to market in the\nnear term; and 3) focusing sales on a narrower range of core products. This\nhas prompted management to recognize a goodwill impairment charge of $8.3\nmillion and increase Techmire's inventory provision by $1.4 million. With\nthese changes management believes it can achieve its goal of significantly\nreducing Techmire's losses over the balance of fiscal 2006 and 2007 and\nthereafter return Techmire to profitability, albeit at lower sales levels.\n\n\n","length":9414,"tagName":"div"}]