Conac News.Conac's six-month revenues up 38 per cent
Conac Software Corp COT
Shares issued 16,052,668 2000-03-24 close $0.58
Monday Mar 27 2000
Mr. Allan Thompson reports
Conac Software has posted revenues of $1,273,000 for the six month period ending Jan. 31, 2000, an increase of 38 per cent as compared with the same period of last year, and a gross profit of $862,000, an increase of 140 per cent.
The revenue increase is due to the continued success and penetration into the U.S. marketplace by the U.S. office and management group based out of Redmond Washington. The strong increase in gross profit is contributed to the new sales business model implemented by the U.S. office. Conac's products continue to be well received as experienced in the increase volume of sales leads that the attended trade shows have brought. As the company continues to capture market share in this fragmented industry which is believed to be over $1-billion a year in size, sustained profitability for Conac is possible in the near future.
As the company continues to transition out of its research and development phase, it will continue to implement its product sales initiatives, capitalizing on its expertise in the construction and engineering management industry. Conac expects continued increase in revenue for the second half of its current fiscal year due to overcoming the uncertainties in the market place with Y2K fears and that December and January have historically been slow sales periods.
The company will continue to focus on maintaining and improving its products to the next level of development. Using "thin-client" architecture will enable the deployment of its products over the Internet for Business to Business (B2B) application use. Conac will continue to develop and provide leading edge next generation business application software, using the Internet as the medium for fast, efficient and cost effective solutions in this industry.
CONSOLIDATED STATEMENT OF OPERATIONS
six months ended Jan. 31
2000 1999
Product sales
and maintenance $ 1,273,000 $ 923,275
----------- ----------
Selling,
distribution and
support costs
Commissions 137,623 58,699
Labour 151,577 359,770
Materials and
supplies 54,444 13,627
Subcontract 28,991 99,007
Travel 38,456 32,913
----------- ----------
411,091 564,016
----------- ----------
Gross profit 861,909 359,259
Administration
expenses
Advertising
and promotion 138,969 564,978
Amortization 117,749 235,786
Bad debts 0 0
Consulting fees 18,241 12,737
Filing and
transfer fees 9,578 12,171
Interest on
long-term debt 25,407 15,031
Management fees
and remuneration 74,000 -
Office 190,401 99,762
Product
development 479,507 402,205
Professional
fees 20,213 38,995
Rent 81,527 70,865
Salaries and
benefits 55,259 184,181
Shareholder
communication 6,336 5,360
Telephone 46,412 55,634
Travel, auto
and
accommodation 8,515 99,652
----------- ----------
1,282,114 1,797,357
----------- ----------
Operating
profit/(loss)
before the
following (420,205) (1,438,098)
(Loss) on
disposal of
capital assets 0 0
----------- ----------
Net (loss) for
the period (420,205) (1,438,098)
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