Firan Technology Group Announces First Quarter 2005 Results
Firan Technology Group Corporation (TSX:FTG) today announced the first quarter results for the period ending February 25, 2005.
First Quarter Results (three months ended February 25, 2005
compared with three months ended February 27, 2004)
Net (Loss): ($981,000)
EPS - basic & fully diluted: ($0.06)
Net (Loss): ($2,060,000)
EPS - basic & fully diluted: ($0.13)
Net sales for the first quarter of 2005 were $12,031,000, an increase of 27% compared with $9,478,000 for the same quarter last year. The increase is attributable to the acquisition of Young Electronics. At the beginning of quarter, the Company acquired Young Electronics (“Chatsworth”) a U.S. printed circuit board manufacturer based in Chatsworth, California and focused primarily on the aerospace, defence and oil field industries. First quarter sales at Chatsworth amounted to $3,355,000, which was 11% greater than sales for the previous year.
FTG Aerospace sales for the current quarter increased 22% or were $373,000 higher than sales for the same quarter last year. Aerospace continues to perform well and maintains a strong backlog going into the second quarter of 2005. Management remains focused on increasing manufacturing capacity as bookings have outpaced capacity. The book to bill ratio for Aerospace was 1.15 to 1 during the first quarter of 2005.
Sales from the Canadian circuit’s operation (“Toronto”) were down $1,175,000 in the first quarter as compared to last year. The decrease is attributable to a Christmas shutdown in the current year and operational issues in the plant. During the quarter, the management team in Toronto contained the quality issues, improved overall manufacturing throughput and hired key manufacturing and process engineering personnel. Sales were negatively impacted during the quarter by a further strengthening of the Canadian dollar. When comparing exchange rates over the same quarter last year, the strengthening Canadian dollar accounted for a reduction in sales of approximately $400,000 during the current quarter. The book to bill ratio for Toronto was 1.17 to 1 during the first quarter of 2005.
Consolidated FTG gross margin increased by $680,000 to $2,083,000 or 17% of sales in Q1 2005 as compared with $1,403,000 or 15% in 2004. The primary reason for the increase was the superior performance of Chatsworth. Chatsworth accounted for $1,141,000 of the total gross margin in the current quarter, which represented margins of 34% of their quarterly sales.
Net loss for the first quarter was $981,000 or $0.06 per share as compared with a net loss of $2,060,000 or $0.13 per share in the same period in 2004.
The balance sheet remained strong at the end of the first quarter. Net working capital at February 25, 2005 was $7,363,000 as compared to $6,026,000 at November 30, 2004. In addition, the Company had a strong cash position at the end of the quarter with cash on hand of $2,126,000.
“We are confident in our strategic direction for FTG. Our focus in aerospace and defence electronics is positioning FTG for future growth and profitability”, stated Mr. Bradley Bourne, President and Chief Executive Officer.
“Chatsworth had a very strong quarter and the management team in California should be commended. The Chatsworth acquisition remains strategically sound as it reinforces our focus in aerospace and defence applications. Our Aerospace division continues to perform well, as first quarter sales were the highest in the last four years. Management in Toronto remains focused on the operational issues and bringing this business back to the financial success we saw in mid 2004”, added Mr. Bourne.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defence 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, defence, and high technology industries.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of avionics products as well as airframe manufacturers.
The Company's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of FTG with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information please contact:
Bradley C. Bourne, President and CEO
Firan Technology Group Corporation
Tel: (416) 299-4000 x314
John Bartkiw, CFO
Firan Technology Group Corporation
Tel: (416) 299-4000 x390