February 2, 1998
NEWS RELEASE NO. 98-002
RICHMOND--Mr. James L. Swanson, Chairman of CON-SPACE Communications Ltd., (VSE: CCB) announced today the Second Quarter results for the 1998 fiscal year. The Second Quarter, ended December 31, 1997, had sales of $505,542, 44.4 percent ahead of the $348,332 in sales for the same quarter a year earlier. On a year-to-date basis sales for the First Half of fiscal 1998 ended at $850,716, 24.7 percent ahead of the $601,092 for the same period a year ago.
"This increase in sales is a direct result of the company's program to expand awareness of CON-SPACE throughout North America and the opening of our new office in England", said Swanson. "All indications lead us to believe that the balance of 1998 fiscal year will continue at these high growth rates."
Operating expenses during the first half of 1998 increased to $468,850, 72.2 percent above the $272,191 spent during the same period last year. Most increases occurred in the Advertising and Promotion, Interest and Service Charges, Salaries and Wages, and Trade Show categories. Due to these higher expenditures, the First Half of 1998 ended with an operational loss of $87,596 or ($0.01) per share compared to last year's operational profit of $75,723 or $0.01 per share.
The amortisation of deferred development costs and depreciation
of capital assets declined this year to $70,605 compared to $125,380
for the First Half a year ago. The resulting net loss ended at
$158,201 or ($0.02) per share compared to $49,657 or ($0.01) per
share last year.
"Though this increase in expenditure has temporarily affected the company's bottom line, it is an investment in the company's future that will benefit both CON-SPACE and its shareholders for years to come."
CON-SPACE, with its web site at http://www.con-space.com, is the 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.
James L. Swanson
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