RICHMOND, BRITISH COLUMBIA -- (Dec. 12, 2007) - CON-SPACE Communications Ltd. (TSX VENTURE:CCB), (http://www.con-space.com), a world leader in specialize
d voice communicat
ion products, technical search, surveillan
ce and inspection systems, previously released its financial statements for the 1st quarter of fiscal 2008 and summaries the results herein.Sal
es increased by 38.8% for the first quarter of fiscal 2008 to a total of $1,873 k compared to $1,350 k for the 1st quarter fiscal 2007. This increase is partially a result of the continuing climb of the Canadian dollar and the addition of Search Systems, Inc. Note that all revenue and costs include Search Systems this year which were not in the previous year.
Cost of goods sold declined to 53.8% of sales as at September 30, 2007 versus 56.9% last year resulting in a gross profit of $865 k for this year compared to $582 k for the respective prior period a year earlier. Operating expenses increased $469 k or 83.4% period-over-period. Salaries, Wages and Benefits increased $88.9 k from $228 k reported in the same quarter last year, are a result of a planned growth strategy, including the addition of new sales staff in the US and the UK, a new President and the addition of Search Systems.
Advertising, travel and trade show expenses increased by $143 k or 241.8% this year. This figure includes a higher travel budget as a result of the increased sales force, a presence at additional tradeshows, the addition of Search Systems and an increased focus on marketing. Office Rent, Supplies & Other costs were up $36 k or 66.9% compared to the same period last year as a result of the addition of Search Systems. Additionally, the Nebraska office was opened in August, 2006; therefore the current year amounts include three months of expenses for that office while only two months were included in the prior year.
Earnings operations before interest, income taxes, depreciation and amortization (EBITDA) for the period was $26 k compared to $61 k in the prior period, while net loss for the period increased to $390 k versus $5 k for the prior year. Loss per share ended at $0.02 per share while earnings per share in 2007 were nil. The average number of common shares outstanding increased from 10,773,380 in 2007's 1st quarter to 14,773,380 in the current quarter.
About CON-SPACE
CON-SPACE and its subsidiary Search Systems, Inc are recognized worldwide as the leading designers and manufacturers of specialized voice communication equipment, video/audio systems, technical search, surveillance and inspection systems 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.
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.
"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.
TSX-Venture: Tier 1
SEC Exemption #82-3378
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:James L. Swanson
CON-SPACE
Chairman
1-800-755-2528
Email: invest@con-space.com
Investor Relations
AGORACOM Investor Relations
Email: CCB@agoracom.com
Website: www.agoracom.com
