Business
Allen-Vanguard announces preliminary second quarter results
Allen-Vanguard announces preliminary second quarter results.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nCompany returns to profitability on strong revenue performance\n\nOTTAWA, April 25 /CNW Telbec/ - Allen-Vanguard Corporation (TSX:VRS)\ntoday announced preliminary financial highlights for the second quarter ended\nMarch 31st, 2006, which demonstrate strong revenue growth and a return to\nprofitability.\n\"We made a commitment to our shareholders to continue to report on our\nprogress on the earliest possible timing,\" said David E. Luxton, Chairman and\ninterim CEO. \"We know that our shareholders have been waiting to see evidence\nof our improving operational and financial results since our last update on\nFebruary 21st, and we also know that many of them may not be able to be\npresent for the progress report planned at the Company's Annual and Special\nMeeting of Shareholders on April 27th. Therefore we're providing this summary\nupdate in advance for all stakeholders. We plan to release full second quarter\nfinancial results and the accompanying MD&A by May 11th, 2006.\"\nThe Company said it expects second quarter revenue to be approximately\n$13.5 million, up more than 50% from $8.9 million reported in the previous\nquarter. Earnings before interest, taxes, amortization, stock-based\ncompensation and foreign exchange (\"EBITDA\"), were approximately $1.1 million\nand net profit was in the range of $0.2 - $0.3 million, subject to final tax\ntreatment.\n\"The second quarter results reflected the initial benefit of the cost-\nsavings measures introduced in January, 2006. With a strong backlog in our\nelectronic counter measures (\"ECM\") business and a lower operating cost\nstructure, we now have enough visibility to project an even stronger third\nquarter as well as a net profit for the fiscal year overall,\" said Mr. Luxton.\nThe Company also reported that its cash position strengthened since\nDecember 31st, 2005, and that normal course discussions are underway with its\nlead lender, the Bank of Scotland, on the scheduled renewal of the Company's\npnds stlg 2M working capital facility. The bank adjusted the Company's\ninterest cover covenant at March 31st and the Company was in full compliance\nwith all covenants.\nAllen-Vanguard said that it continues to sustain a solid order rate,\nparticularly overseas orders for its ECM product line. \"This was certainly a\nbig driver in the second quarter,\" said Mr. Luxto...