I've been flogging this one on the Microcap forum...
CEP closed at $2 today.
Ceramic Protection Corporation - Results of the Third Quarter
Wednesday September 24, 12:17 pm ET
Symbol: CEP Exchange: TSX Venture
CALGARY, Sept. 24 /CNW/ -
Financial Results
The financial results for the third quarter ended July 31, 2003 are
summarized as follows:
<<
Three Months Ended Nine Months Ended
(Thousands, except July 31 July 31
per share figures) 2003 2002 2003 2002
------------------------------------------------------------------------
Revenue $4,133 $1,058 $13,450 $3,224
Gross Profit 1,081 296 3,132 1,034
Net Income (Loss) 587 (95) 1,594 (110)
Cash Flow (Deficiency) 681 (1) 1,884 178
Net Income (Loss)
per Share 0.09 (0.01) 0.24 (0.02)
Cash Flow per Share 0.10 0.00 0.28 0.03
------------------------------------------------------------------------
>>
Operations Review
Armour product sales continued to be strong. Armour sales of $3,839,000 were achieved in the third quarter ended July 31, 2003, a 427% increase over armour sales realized during the third quarter of 2002. Sales of polyethylene personnel body armour purchased from a supplier and distributed to customers in the United States accounted for the majority of the armour product sales. During the third quarter, several new orders were received for the supply of completed and bonded ceramic plates to customers in Australia, USA and South America. Negotiations currently continue related to the supply of bare ceramic plates to an international customer. The Corporation continues to actively submit bids on other significant international personnel armour contracts, including the introduction of the Ceramic Armour on Patrol (CAP) system destined for the national and international police marketplace. The Corporation continued its ballistic qualification testing for a major vehicular armour manufacturer. Negotiations are under way with a Canadian federal funding agency for the continuation of applied research and development of potential police vehicle applications in Canada and the USA. Sales of wear management products were $294,000 in the quarter, down from sales of $330,000 achieved in the third quarter of 2002.
Business Environment and Risks
The Corporation continues to maintain a base of customers while competing for contracts in a competitive technical marketplace. Marketing efforts to increase the Corporation's visibility and sales include the use of internal sales personnel and external agents as well as offering training courses in ballistic protection technology. The Corporation is responding to market demand for improved materials and alliance partners are used to bring products to market quickly with minimal capital investment from CPC. Much of the Corporation's revenue is derived from international contracts which are bid in US currency. The Corporation must react quickly to market demands by constantly adjusting production levels to meet supply requirements. World economic, military and political factors affect the number and size of contracts available for bid.
Financial Review
Revenues for the three months ended July 31, 2003 were $4,133,000, an increase of 291% over the same period of the prior year. Gross profit for the period was $1,081,000 as compared to $296,000 reported in the same period in 2002, an increase of 265%. The Corporation's general and administrative, interest and depreciation expenses were $572,000 during the three months ended July 31, 2003 as compared to $397,000 during the same period of the prior year. The increase was due to increased compensation, insurance, and marketing costs. Net income was $587,000 as compared to a loss of $95,000 for the third quarter ended July 31, 2002. The significant increase in net income was a result of much stronger armour sales. A currency exchange gain of $78,000 in the quarter was recorded. Net income per share for the three months ended July 31, 2003 was $0.09 versus a loss of $0.01 in 2002. Net income for the nine month period ended July 31, 2003 was $0.24 per share.
Do your own DD on this one.
Ciao |
