Firan Technology Group Corporation (FTG) Announces Record Revenue For Second Quarter 2006
Firan Technology Group Corporation (FTG) Announces Record Revenue For Second Quarter 2006
Firan Technology Group Corporation (TSX:FTG) today announced the second quarter 2006 results for the period ending June 2, 2006.
FTG achieved $14,764,000 in revenue in the second quarter, an all-time record for the Corporation. Net earnings after tax for the second quarter of 2006 rose to $408,000 versus a second quarter loss of $183,000 in 2005.
Second Quarter Results: (three-months ended June 2, 2006 compared with three-months ended May 27, 2005)
Q2 2006
Sales: $14,764,000
Gross Margin: $3,276,000
Operating Earnings Before Tax: $310,000
Net Earnings (Loss) After Tax: $408,000
Earnings (Loss) per share – basic & diluted: $0.02
Q2 2005
Sales: $14,162,000
Gross Margin: $2,849,000
Operating Earnings Before Tax: $166,000
Net Earnings (Loss) After Tax: ($183,000)
Earnings (Loss) per share – basic & diluted: ($0.01)
Year to Date Results: (six-months ended June 2, 2006, compared with six-months ended May 27, 2005)
YTD 2006
Sales: $28,127,000
Gross Margin: $6,123,000
Operating Earnings (Loss) Before Tax: $521,000
Net Earnings (Loss) After Tax: $586,000
Earnings (Loss) per share – basic & diluted: $0.03
YTD 2005
Sales: $26,193,000
Gross Margin: $4,932,000
Operating Earnings (Loss) Before Tax: ($765,000)
Net Earnings (Loss) After Tax: ($1,164,000)
Earnings (Loss) per share – basic & diluted: ($0.07)
Net sales increased by $602,000 or 4.3%, from $14,162,000 in the second quarter of 2005 to $14,764,000 in the second quarter of 2006. The Circuits Segment grew by $363,000 or 3.1% over the same period last year. Performance in the Circuits – Toronto facility, the largest operation for FTG, was particularly strong in Q2 and year-to-date. There is significant operating leverage gained from increased capacity utilization in this facility. Improving market conditions and an improved sales team drove the year over year improvement. The Aerospace segment also grew over the same quarter last year by $239,000 or 9.8% due to higher Quick Turn activity and increased shipments to key customers. The record revenue for the Corporation was achieved in spite of the ongoing strengthening of the Canadian dollar. The strength of the Canadian dollar versus the U.S. dollar impacted our reported sales for the quarter by approximately $1,081,000 versus the same quarter of 2005.
Gross margin increased by $427,000 to $3,276,000 or 22.2% of sales for the second quarter of 2006 as compared with $2,849,000 or 20.1% of sales in the second quarter of 2005. The increase in gross margin is directly attributable to the higher throughput and yields in the Canadian operations, offset somewhat by a decrease in performance in Chatsworth. FTG Aerospace margins have improved by $61,000 or 8.9% over the same period as last year despite the new product development costs associated with the Lighting Power Supply (LPS) for use on the new Bell 429 platform. These costs were expensed in the quarter and had a small drag on earnings. The strengthening of the Canadian dollar negatively impacted overall gross margin in the range of $300,000 to $400,000.
Net earnings for the second quarter of 2006 were $408,000 or $0.02 per share ($0.02 per diluted share) as compared with a loss of $183,000 or $0.01 per share (loss of $0.01 per diluted share) in the second quarter of 2005.
“We are pleased with the continued revenue and profit growth for the Corporation. We are particularly pleased with the performance in our Canadian operations that are consistently improving their results in spite of the impact of the strengthening Canadian dollar. The lower performance in Chatsworth is primarily due to lower throughput and yields. This resulted from our efforts to upgrade the plant and equipment that caused some production disruptions and higher scrap in the quarter. We have nine new pieces of equipment installed or being installed currently and we have plans for additional equipment in the coming months. When we are through with this process we believe the capability and capacity of this facility will be significantly upgraded”, commented Mr. Brad Bourne, President and CEO, FTG Corporation.
“To continue to improve our financial performance, FTG is focused on achieving Operational Excellence. Our customers demand high quality products, on time delivery and outstanding customer service. We focus on improving our performance in all of these areas every day,” added Mr. Bourne, President and CEO.
“In the second quarter we successfully concluded negotiations with our represented staff in our Circuits facility in Toronto. We were also successful in obtaining important pieces of equipment, primarily for our Chatsworth facility, at very attractive prices and made much faster progress in our expansion plans than originally expected. Finally in Aerospace we completed a contract to obtain Government funding support for our Lighting Power Supply development to reduce the direct investment necessary from the Corporation,” added Mr. Joe Ricci, Vice President and CFO.
The Company will host a live conference call on July 06, 2006 at 8:30am (EDT) to discuss the results of the second quarter of 2006.
Anyone wishing to participate in the call should dial 416-695-6623 or 1-888-280-8771 and identify that you are calling into the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until July 20, 2006. The number to call for a rebroadcast is 416-695-5275 or 1-888-509-0081 and the verbal password for the rebroadcast is 626531. The replay will also be available on the FTG website at www.firantechnology.com
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.
The Company’s shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. Such statements are based on the current expectations of management of the Company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Company”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 Company. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements.
For further information please contact:
Bradley C. Bourne,
President and CEO
Tel: (416) 299-4000 x314
Firan Technology Group Corporation
bradbourne@firantechnology.com
Joseph R. Ricci,
Vice President and CFO
Tel:(416) 299-4000 x309
Firan Technology Group Corporation
joericci@firantechnology.com
Additional information can be found at the Company”s web site www.firantechnology.com
