Firan Technology Group Corporation Announces Significant Growth in Sales and Profitability for the S
Firan Technology Group Corporation Announces Significant Growth in Sales and Profitability for the S
Firan Technology Group Corporation (“Company”) announced today the second quarter results for the period ended May 28, 2004.
Second Quarter Results (three months ended May 28, 2004,
compared with three months ended May 30, 2003)
2004
Sales: $13,338,000
Net Income: $1,138,000
EPS – basic: $0.07
EPS – fully diluted: $0.06
EBITDA*: $2,108,000
2003
Sales: $7,173,000
Net Income: $251,000
EPS – basic: $0.03
EPS – fully diluted: $0.03
EBITDA*: $716,000
Year to Date Results (six months ended May 28, 2004,
compared with six months ended May 30, 2003)
2004
Sales: $22,816,000
Net (Loss)/Income: ($922,000)
EPS – basic and diluted: ($0.06)
EBITDA*: $989,000
2003
Sales: $13,245,000
Net (Loss)/Income: $462,000
EPX – basic and diluted: $0.05
EBITDA*: $1,437,000
The second quarter of 2004 was an extremely strong quarter for the Company. Sales in the second quarter increased 85% over the same quarter in 2003. The increase is primarily attributable to improved market conditions and the merger between Circuit World Corporation and Firan Technology Group Inc., in July of 2003.
Sales for the current quarter increased by $3,860,000 or 41% versus the first quarter of 2004. This strong sequential quarterly growth is a result of the integration being complete and the Company”s ability to fulfill customer demand with increased manufacturing capacity. Improved business conditions in the printed circuit board industry contributed to this positive quarter. In terms of financial and operating performance, the second quarter of
*EBITDA – Earnings before interest, tax, depreciation and amortization
2004 was clearly the Company”s best quarter since the merger of last year.
Included in net income for the quarter is a $313,000 gain on the sale of redundant assets associated with the former FTG manufacturing facility that was permanently closed in December of 2003. In addition, the Company received a $386,000 R&D tax credit during the quarter. This refund was accounted for as a reduction to cost of sales in the current quarter. Offsetting these gains were one-time costs of $347,000 relating to a number of items.
“The current financial performance is a clear indication to our stakeholders that the challenges associated with the merger are firmly behind the Company. FTG is now able to focus its efforts on growing and improving the business to enhance future profitability”, stated Mr. Bourne, President and CEO of FTG.
“Our focus for growth has not wavered, we will continue to seek out new opportunities in the aerospace/military markets as well as the high technology/ high reliability commercial markets. I believe these markets represent the best opportunities for long-term growth and superior margins,” added Mr. Bourne.
The Company will host a live conference call on Wednesday, July 7, 2004 at 9:00am (ET) to discuss the results of the second quarter.
Anyone wishing to participate in the call should dial 416-695-9713 or 877-888-4483 and identify that you are calling into the FTG conference call. The Chairperson is
Bradley Bourne. A replay of the call will be available until Wednesday, July 14, 2004. The number to call for the rebroadcast is 416-695-5275 or 888-509-0081.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
Firan Technology Group Corporation has two operating divisions. FTG Circuits is a leading supplier of high reliability, high technology printed circuit boards. FTG Aerospace manufactures illuminated panels and keyboards for the civil and commercial aviation industries. All manufacturing operations are located in Scarborough, Ontario.
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.
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For further information please contact:
Bradley C. Bourne, President and CEO Tel: (416) 299-4000 x314
Firan Technology Group Corporation bradbourne@firantechnology.com
John Bartkiw, CFO Tel: (416) 299-4000 x390
Firan Technology Group Corporation johnbartkiw@firantechnology.com
