CALGARY, Aug. 21 /CNW/ - Inventronics Limited (IVX:TSX Venture), a designer and manufacturer of custom enclosures for the telecommunications, electric transmission, cable and other industries in North America, today announced its 2008 second quarter financial results.
Inventronics reported sales of $5,468,000 for the second quarter of 2008, compared to second quarter sales of $5,604,000 in 2007.
The net earnings for the quarter ended June 30, 2008 were $205,000 or 4.7 cents per share, compared to $186,000 or 4.2 cents per share for the same quarter in 2007.
As previously announced the Corporation's largest customer, representing 78% of sales in the first half of 2008, has notified the Corporation that it is not going to extend the contract with the Corporation as primary supplier past its expiry on October 15, 2008 and that the Corporation wil become its second supplier operating without a contract. In addition to the loss of revenue expected with this significant reduction in sales, reorganization of the operations is necessary and downsizing costs such as severance will be material. Management has not yet fully assessed the consequences of the loss of the contract and the potential reductions in sales volume but expects aggregate corporate sales volumes to be reduced by approximately 40% to 60% in future periods.
About Inventronics
Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electronics, electric utilities and computer services industries in North America. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba and has head offices in Calgary, Alberta.
Shares of Inventronics trade on the TSX Venture Exchange under the symbol "IVX." For more information about the Corporation, its products and its services, go to www.inventronics.com.
Inventronics' 2008 first-quarter results will be filed with SEDAR at www.sedar.com by August 29, 2008.
Selected Financial Information:
(in thousands, except per share amounts)
Income Statement Highlights Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Sales 5,468 5,604 11,023 10,735
EBITDA 438 420 836 910
Net earnings 205 186 377 442
Basic earnings per share 4.7 cents 4.2 cents 8.6 cents 10.0 cents
Balance Sheet Highlights June 30, 2008 December 31, 2007
Working capital 1,039 735
Capital assets 5,533 5,718
Long-term debt (excluding
current portion) 2,653 2,940
Shareholders' equity 3,919 3,513
Disclaimer
This news release contains forward looking information that represents the Corporation's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or the Corporation's future economic performance. These statements relate to future events or future performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the production performance of Inventronics' assets, the cost and competition throughout the telecommunications industry in 2008, and the continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to exchange rates, costs of production, outlook for sales, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.