October 30, 1997
NEWS RELEASE NO. 97-018
RICHMOND--Mr. James L. Swanson, Chairman of CON-SPACE Communications Ltd., (VSE:CCB) announced today the first quarter results for 1998 fiscal year. CON-SPACE is world leader in the manufacture and supply of unique products that serve the industrial, municipal, military, fire and rescue markets throughout most of the world.
Numerous activities transpired during the first quarter. CON-SPACE moved to new and larger premises, obtained a further $500,000 in funding from the Business Development Bank of Canada (BDC) and officially introduced a new line of products for two-way radio use. The move disrupted the performance of the quarter but, Swanson said, "That is all behind us now and we will catch-up during the second quarter."
Sales for first quarter, ended September 30, 1997, were $346,286. This was a 4.1% increase over the $332,760 for the same quarter a year earlier. With the funds raised from BDC, additional staff have been hired and a major advertising and trade show program begun. These additional expenditures increased the first quarter operating expenses resulting in a total of $196,241 in expenses compared to $127,615 last year, a 53.8 % increase.
Swanson indicated that part of the increase was a result of the one-time costs associated with relocating to their new premises and the costs associated with arranging further funding. Increases in staff, advertising and trade shows costs will be ongoing but increased returns are expected as a result.
The first quarter operational loss was $36,369 or ($0.01) per
share. This compares to a profit of $48,278 or $0.01 per share
last year at this time. The amortization of deferred development
costs and depreciation of capital assets declined, as predicted,
to $35,303 this year compared to $62,690 for the first quarter
a year ago. The resulting net loss ended at $71,672 or ($0.01)
per share compared to $14,412 or ($0.00) per share last year.
"Many other projects are underway at CON-SPACE," said Swanson, "including the acquisition of LYNX-SCT Group GmbH., of Switzerland, and its major product, the "Safety-Roll", a new product for the confined space and rescue markets." He concluded by saying, "This is all an investment in the company's future, one that will benefit CON-SPACE for years to come."
James L. Swanson
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