Business
Allen-Vanguard provides general progress report and update following first quarter results
Allen-Vanguard provides general progress report and update following first quarter results.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\n- Streamlined operational structure and rightsizing of operations\n designed to restore profitability\n- Financial position strengthened\n- Lockheed Martin places initial orders for Electronic Counter Measures\n (ECM) products\n- Financial model to reflect higher gross margin and lower overhead\n\nOTTAWA, Feb. 21 /CNW Telbec/ - Allen-Vanguard Corporation (the \"Company\"\nor \"Allen-Vanguard\") (TSX:VRS) of Ottawa, Canada today provided highlights of\nits progress towards profitability and the outlook for the balance of fiscal\n2006.\n\"Our first priority is restoring profitability after the past difficult\nyear,\" said David Luxton, interim CEO and Chairman. \"We put the pieces\ntogether to make Allen-Vanguard the \"go-to\" company to combat \"all hazards\",\nmeaning the company that can deal with a threat that could be explosive, bio-\nchemical or radiological. But the focus on integration was at the expense of\nour operational and financial performance. Now we have taken the steps to\nstreamline and rightsize our operations.\"\nSome of the steps included in the restructuring process include\nreorganizing management and accountability around product lines. In addition\nthe Company is taking a new approach to the U.S. market with an augmented \nU.S.-resident sales team in order to turn around performance in this key\nmarket.\nRightsizing measures are also key to restoring profitability, and these\ninclude the already announced outsourcing of manufacturing of the Vanguard(TM)\nMk2 robot in Ottawa. Also, overheads in Ottawa, including finance,\nadministration, insurance and professional fees have been substantially\nreduced.\nAllen-Vanguard said that with the progress on restructuring and\nstreamlining it is now closely monitoring the performance of its base\nbusinesses of Explosive Ordnance Disposal (EOD) equipment and CBRN (Chemical-\nBiological-Radiological-Nuclear) protection and decontamination equipment. \"We\nare evaluating the profitability of our EOD and CBRN products and should be\nable to quickly draw conclusions as to where the most value might be created\nfor our shareholders for these product lines. This is part of the announced\nstrategic review currently underway,\" said Luxton.\nThe Company noted that its balance sheet was strengthened and its quality\nwas improved from June 30, 2005 to the end of the f...