October 20, 2000
NEWS RELEASE NO. 00-015
Trading Symbol CDNX: CCB
US SEC Exemption No. 82-3378
RICHMOND, BC - Mr. James L. Swanson, Chairman, of CON-SPACE Communications Ltd., announced today the results of the year ended June 30, 2000.
Fiscal 2000 sales ended at $2,723,907 up 3.4% over the $2,633,726 for the previous year. Sales were impacted by two main factors. A slowdown in the safety industry during the last six months of calendar 1999 caused by the concern over Y2K and its potential effects plus the late introduction of new products to the market place. The new products were originally scheduled for introduction in December 1999 but did not actually become market available until late June 2000. These products are now being sold and will contribute to the 2001 fiscal year's sales.
Operating expenses increased during the year due to a change in accounting procedure to accrue less expenses to deferred development cost and to shorten the amortization period to three years. This move was intended to bring the Company's reporting methods more into line with the changing Canadian Income Tax Act and approach the method of reporting within the USA as the company prepares itself for a potential listing on a US stock exchange. The operating expenses therefore ended at $1,385,614 June 30, 2000 up from $1,180,648 for a year earlier. This adjustment to the method of accruing deferred development cost reduced operational income from $291,245 or $0.04 per share one year ago to a loss of $61,520 or $0.01 per share this year.
"When it became apparent that we needed to alter our accounting methods we concluded it would be best to do so right away and get the change behind us," said Swanson.
Net earnings were also impacted by the change in accounting procedures with the amortization of deferred development costs increasing from $165,670 a year ago to $369,878 as of June 30, 2000. The resulting net earnings dropped to a loss of $469,009 or $0.07 per share this year from a profit of $70,000 or $0.01 a year earlier.
CON-SPACE designs and manufactures high
quality voice communication equipment for the industrial and public
safety market place world wide and is considered the undisputed
leader in its field.
For more information, please call Jim Swanson, Investor Relations, CON-SPACE COMMUNICATIONS LTD., (604) 244-9323, (800) 755-2528 in the U.S., or by e-mail [email protected]. "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.
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