November 02 , 2005
News Release 05-028
TSX Venture Exchange: Tier 1
Trading Symbol TSX-V: CCB
US SEC Exemption No. 82-3378
CON-SPACE Reports 1st Quarter Revenue $1.7 Million
Richmond, British Columbia, November 2, 2005 – CON-SPACE Communications Ltd., (TSX-V: CCB) announced today its official results for the first quarter of fiscal 2006 ended September 30, 2005. “Despite the unfavorable movements in the US dollar the Company’s revenues increased 14% or $ .2 million to $1.67 million,” announced Mr. James L Swanson, Company Chairman.
“Despite the disruption during the first quarter while we expanded our facility by over 50% and the increasing Canadian dollar we still managed a healthy 14% increase in sales,” said Swanson, “maintaining $0.03 earning per share on a pre-tax basis.”
The Company expansion added a further 50% of facility space to better accommodate its manufacturing, warehouse, quality and engineering operations. This increased space resulted in a required change in the amount of expenses relating to facility, manufacturing and support wages and salaries, plus utilities allocated to the cost of goods sold. The effect will be to increase the cost of goods sold and decrease operational expenses.
Cost of goods sold as a percent of sales increased to 56.7% from 46.5% while the cost of operations decreased to 26.5% from 33.0% in the previous year.
The Company is now in a fully taxable position, therefore after-tax or net profit ended at $173K or $0.02 per share for the 1st quarter which represents a 1.3% increase over after-tax profits of $170K or $0.02 per share for the same period last year.
Mr. Swanson concluded, “CON-SPACE continues to pull ahead and we remain on track to top our sales objective for this fiscal year. With our expanded facility, the new people in place and the disruption behind us we can now focus our attention, once again, on increasing sales. This will also be supported by the new products we will be introducing shortly and the planned expansion of our traditional markets.”
The Annual General Meeting is on November 10, 2005 at 3:00 PM at the Abercorn Inn - Best Western in Richmond BC. All interested parties are invited.
Selected Restated Financial Information
All financial information for the 1st quarter will be filed on SEDAR within the next week. This financial quarterly filing is considered a part of this news release and should be read together with the unaudited consolidated financial statements for the Company's first quarter of fiscal 2006 ended September 30, 2005, including the notes thereto.
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@Agoracom.com
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.
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For more information, please contact:
James L. Swanson, Chairman, CON-SPACE COMMUNICATIONS LTD.
Tel: (604) 244-9323, (800) 755-2528 in the U.S.
invest@con-space.com
505 - 5600 Parkwood Way
Richmond, BC, Canada V6V-2M2
Fax (604) 270-2138
Investor Relations
AGORA Investor Relations
http://www.agoracom.com
(Select "CON-SPACE")
CCB@agoracom.com
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