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Allen-Vanguard reports financial results for first quarter of fiscal 2006 ended December 31st, 2005
Allen-Vanguard reports financial results for first quarter of fiscal 2006 ended December 31st, 2005.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nOTTAWA, Feb. 9 /CNW Telbec/ - Allen-Vanguard Corporation (the \"Company\"\nor \"Allen-Vanguard\") (TSX:VRS) of Ottawa, Canada today reported its financial\nresults for the first quarter of fiscal year 2006 ended December 31, 2005.\nRevenue for the first quarter was $8.9 million and the net loss was\n$2.5 million, or $0.07 per share. This compares to the record quarter reported\na year ago, when revenues were $17.5 million and the net loss was $0.7 million\nor $0.03 per share.\n\"As previously reported, our first quarter revenue performance continued\nto be weak, and this was mainly attributable to the timing of several large\norders, particularly in the U.S. market,\" said David E. Luxton, interim\nChairman and CEO. \"However, we are pleased to be able to report that the\noperating loss in the first quarter narrowed significantly over the previous\nquarter. This reflects a reduction in selling and administrative expenses due\nto cost savings measures that we have implemented since the fiscal year began.\nWith further cost-savings still to take effect, and with a significant\nincrease in new order intake since December 31, 2005, we foresee much stronger\noperating results for the balance of 2006.\nThe Company affirmed that its financial position remains healthy, and\nthat it was in compliance with all bank covenants. Working capital was\n$15.8 million at the end of the quarter including cash, net of bank\nindebtedness of $1.3 million, with working capital expected to strengthen\nthrough the balance of fiscal 2006.\nThe Company intends to provide a general progress report and update and\nhas scheduled a conference call with the investment community on February 21,\n2006 at 9:00 a.m. The Company recently announced a number of positive\ndevelopments including:\n\n- A strategic deal with Lockheed Martin for Electronic Counter Measures\n (ECM) equipment sales in the U.S.\n- More than $15 in overseas ECM sales in the past 90 days leading to a\n strong backlog.\n- Outsourcing and cost reduction measures to restore profitability.\n\nFirst Quarter FY 2006 Financial Highlights\n\n- Revenue was $8.9 million in Q1 2006, including $3.1 million for an\n integrated equipment and service package for an Asian military group.\n This compared to $17.5 million in Q1 2005, which included revenue of\n $3.6 million in respect of the contract ...