RICHMOND, BC, Nov. 30 /CNW/ - CON-SPACE Communications Ltd. (CCB - TSX Venture), (http://www.con-space.com ), a world leader in specialized voice communication products, today announced 2007 first quarter financial results for the period ended September 30, 2006. "CON-SPACE ended its first quarter for fiscal 2007 with an increasing sales backlog," said Jim Swanson Company Chairman. "Though it may be a little early to forecast the balance of the year's performance we are seeing a resurgence of OEM business and an increasing level of funding from Home Land Security. Looking back the effects of Katrina appear to have lasted a full 12 months and now are dissipating as business recovers. Regardless, we remain very positive regarding the balance of this fiscal year and next due to our new products and expansion into the communications market." First Quarter Results For the three months ended September 30, 2006, the Company achieved sales of $1.35 million, 81.0% of the first quarter of 2006, compared to $1.67 million for Q1 2006. Gross margin was $582 thousand or 43.1% of sales, compared to $721 thousand or 43.3% of sales in the Q1 2006 period. First quarter expenses increased to $587 thousand from $443 thousand in Q1 2006, and as a percentage of sales, operating expenses increased to 43.5% from 26.6%. A portion of the increase was related to a lower in sales volumes, foreign exchange losses and rising insurance premiums, however the balance results from investment in new sales personnel and increased product development costs which are expected to produce positive results for the Company. Net loss for the first quarter of 2007 was $5 thousand, or $0.00 per share. This compares to net earnings of $173 thousand or $0.02 per share during the same quarter in 2006. Outlook The Company expects to launch additional new products including specialized headsets designed for police, swat team, and military applications as the year progresses. Although first quarter is a seasonally slower period for CON-SPACE, the company remains very comfortable with its planned growth for this year. With no long-term or short term debt and over $1.65 million in cash, the Company is moving forward with numerous growth plans including acquisition activities and fully expects a profitable growth year to emerge as this year progresses. This press release has been submitted to http://www.TOP10PressReleases.com for investors to vote on and help move into the TOP 10 of the day. Investors can locate the release by using the industry filter or searching by company name and/or stock symbol About CON-SPACE CON-SPACE is recognized worldwide as the leading designer and manufacturer of specialized voice communication equipment used by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities and general industry. The Company has distribution throughout North America, Great Britain, Australia, and parts of Asia, South America, and Europe. The Company also supplies many other manufacturers with Private Labeled products. This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the CON-SPACE Investor Contact & Information Centre. Alternatively, investors are asked to e-mail all questions and correspondence to CCB(at)Agoracom.com "Forward-looking" statements in this release involve risks and uncertainties associated with, among others, economic, industry conditions, technological development, and competition and should not be relied upon as actual results may differ materially from those projected. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.