September 16, 1997
NEWS RELEASE NO. 97-016
RICHMOND BC-Mr. James L. Swanson, Chairman of CON-SPACE COMMUNICATIONS Ltd., (VSE:CCB), announced today a 403.0% growth in operational profits for the fiscal year ended June 30, 1997. "We are very pleased to report a substantial gain in our 1997 yearend operational profits," said Swanson. The actual operational profits were $191,993 or $0.03 per share compared with 1996 at $38,142 or $0.01 per share.
Mr. Swanson explained that "the profits were a result of a 25% increase in sales during the 1997 fiscal year and a continued effort to control costs." Sales ended at $1,512,311 compared to $1,210,114 for 1996. Most of the sales growth resulted from the maturing of CON-SPACE's North American distribution network and initial development of the international market.
The ongoing corporate policy of maintaining tight controls
on expenses kept the costs down to only a 5.7% increase between
1996 and 1997. A total of $619,315 was spent this year compared
to $585,643 in 1996. "This control will continue into the
future," said Swanson, adding, "Our intention is to
continue running a tight ship so that increased profits can be
maximized allowing the company to grow in strength."
The high amortization rate of the deferred development costs once again affected the company's net profits. (The amortization levels drop during the 1998 fiscal year). For 1997, the net loss reduced to only $49,288 or ($0.007) per share. This is a $128,958 improvement over the net loss of $178,246 or ($0.03) per share for the 1996 fiscal year.
CON-SPACE is the world leader in the development and marketing of specialized communication equipment used by industry, municipalities, rescue teams and the military when personnel operate in dangerous environments or hazardous atmospheres, such as, within tanks, sewers, boilers, and other types of confined spaces. CON-SPACE products are now sold throughout Canada, the United States, the Pacific Rim, Great Britain and Europe,
In just five short years CON-SPACE has grown from a new idea
to an International company with unique products, a solid reputation,
an expanding base, and the potential for even greater emerging
James L. Swanson
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