Firan Technology Group Corporation Announces Continued Growth In The First Quarter 2009
Toronto, April 6, 2009 – Firan Technology Group Corporation (TSX:FTG) today announced financial results for the first quarter 2009.
· Sales increased by 8% to $14.7M and
· Gross margin as a percentage of sales increased 31% or $0.9M.
“Given the state of the global economy, we are pleased with our results in our first quarter of 2009. Notwithstanding the dip we saw in demand, we maintained our growth, paid down our debt and renewed our credit facilities with our bank,” stated Mr. Brad Bourne, President and Chief Executive Officer. “We remain committed to our strategy of Operational Excellence to improve our internal performance, and to aggressively invest in R&D to improve our technological capabilities to grow the business”, he added.
Q1 2009 Results: (three months ended February 27, 2009 compared with three months ended Feb 29, 2008)
Operating Earnings before: $1,009,000
Net R&D Investment: $1,074,000
Filtran Restructuring and Losses: $0.00
Net Loss: ($67,000)
Loss per share - basic: $0.00
Loss per share - diluted: $0.00
Operating Earnings before: $161,000
Net R&D Investment: $863,000
Filtran Restructuring and Losses: $368,000
Net Loss: ($1,047,000)
Loss per share - basic: ($0.06)
Loss per share - diluted: ($0.06)
The Corporation’s sales grew in Q1 2009 to $14,694,000, an increase of $1,096,000 or 8% over Q1 2008. Sales were positively impacted by the strengthening of the U.S. dollar, which offset a decline in activity across both businesses. Customers worked to reduce inventories in the quarter and this reduced demand at FTG. Last years’ acquisition of Filtran increased revenues by $777,000 in the quarter. We continue to see solid demand for this type of product and are working to leverage our knowhow and expand into new programs and customers.
Q1 2009 sales for the Circuits segment were $11,486,000, an increase of $917,000 or 9% compared to Q1 2008. For the Aerospace segment, sales in the first quarter were $3,208,000 compared to $3,029,000 in Q1 2008, an increase of $179,000 or 6%.
FTG had an operating earnings before R&D, and tax in Q1 of 2009 of $1,009,000, compared to $161,000 on an equivalent basis in Q1 2008. There were no Filtran related expenses in Q1 2009 versus $368,000 in Q1 2008.
Net loss for the first quarter was $67,000 compared to a net loss of $1,047,000 in the comparable quarter in 2008. The Q1 2009 loss includes $229,000 in foreign exchange losses due to revaluation of assets and liabilities on the balance sheet, a one time expense related to utility costs of $114,000, expenses of $25,000 related to the creation of FTG Aerospace-Tianjin, offset by a one time recovery of $277,000 due to an overpayment on employee benefits in prior periods. R&D remained high in Q1 2009 as we continue to invest in new technologies and programs.
Across FTG, total bookings in the quarter were $13.3M. The book-to-bill for the Corporation was 0.91:1 and 0.97:1 for the Circuits business. Bookings were generally stable for defence customers, down slightly from large Air Transport customers and down significantly from customers in the business jet markets. The lower orders from existing programs and customers were somewhat offset by the capture of new programs and new customers. Total backlog of orders at the end of Q1 2009 were $16.7M.
FTG accomplished many goals in Q1 2009 that continue to improve the Corporation and position it for the future, including:
· The renewal of multiyear contracts with Honeywell and Rockwell
· Qualification at Lockheed Martin for both Circuits facilities
· The renewal and expansion of credit facilities with Comerica bank
· Acquisition and commissioning of Laser Direct Imaging Technology in Circuits-Toronto
· Continued higher technology activity across all three sites
As at February 27, 2009, the Corporation’s primary source of liquidity included accounts receivable of $12,031,000 and inventory of $9,779,000. Net working capital at February 27, 2009 was $9,493,000.
The Company will host a live conference call on April 7, 2009 at 8:30am (EDT) to discuss the results of Q1 2009.
Anyone wishing to participate in the call should dial 416-641-6136 or 1-866-223-7781 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until April 21, 2009 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-695-5800 or 1-800-408-3053, pass code 5034437.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to the North American marketplace. FTG has two operating units:
FTG Circuits is a manufacturer of high technology/high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of avionics products as well as airframe manufacturers located in Toronto, Ontario.
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
Bradley C. Bourne,
President and CEO
Tel: (416) 299-4000 x 314
Firan Technology Group Corporation
Joseph R. Ricci,Vice President and CFO
Tel: (416) 299-4000 x 309
Firan Technology Group Corporation
Additional information can be found at the Corporation’s website www.ftgcorp.com