CPL Technologies Continues to Expand Sales-Q3 up 20%
this company has great potential imo. great valuations and a bright future
from the md&a last quarter
Management has set out three financial goals with the adoption of the strategic plan.
The following table shows how the Company has performed against its long-term objectives and also illustrates how the
Company’s performance has contributed to the accomplishment of those objectives.
Strategic plan key
metrics
Annual strategic plan
goals Performance per Quarter
2005 to 2008 September 30th
2006
September 30th
2005
September 30th
2004
Revenue + 20 % to 35 %/ year + 20% +27 % + 10 %
EBITDA From 20 % to 30 % 31 % 22 % 19 %
Net income per share per
quarter From 0.005 $ to 0.0125 $ 0.0062 $ 0.0033 $ 0.0018 $
- Q3 Sales up 20% Over Last Year
- EBITDA Margins Increase Quarter Over Quarter to Reach 31%
- Nine Month Net Profits Increase by 67%
MONTREAL, QUEBEC--(CCNMatthews - Nov. 15, 2006) - CPL TECHNOLOGIES INC.
(TSX VENTURE:CCY)
Attention Business/Financial Editors
CPL TECHNOLOGIES INC., a leading provider of customer support
application systems, today reported its third quarter results which
ended September 30, 2006. All sales are in Canadian dollars unless
otherwise indicated.
Third quarter sales rose by 20% to $579,600 from $482,377 over the third
quarter last year. The Company generated a net profit of $81,142 or
$0.0062 per share, compared to $43,425 or $0.0033 per share for the same
quarter last year.
Sales for the nine month period were $1.7 million, a 24% increase over
the same period last year. Over the nine month period, the Company
considerably improved profitability and earned a net profit of $161,371
or $0.0124 per share, compared to a net profit of $96,465 or $0.0073 per
share for the same period last year.
/T/
------------------------------------------------------------------------
------------------------------------------------------------------------
Financial Highlights
(in Canadian dollars, ended September 30th)
------------------------------------------------------------------------
------------------------------------------------------------------------
Third Quarter Nine months
------------------------------------------------------------------------
2006 2005 2006 2005
------------------------------------------------------------------------
------------------------------------------------------------------------
Revenues $579,600 $482,377 $1,701,567 $1 372,649
EBITDA $180,348 $108,202 $426,748 $302,561
Net earnings $81,142 $43,425 $161,371 $96,465
Net earnings
per share
Basic $0.0062 $0.0033 $0.0124 $0.0073
Fully diluted $0.0058 $0.0029 $0.0115 $0.0066
Total assets $2,005,695 $1,878,292 $2,005,695 $1,878,292
Long Term
Liabilities $264,996 $312,257 $264,966 $312,257
Weighted average
number of common
shares outstanding 13,053,848 13,132,857 13,053,848 13,258,965
------------------------------------------------------------------------
------------------------------------------------------------------------
/T/
"Sales increased for the third consecutive quarter this year. As we move
closer to our fiscal year-end we expect sales to remain healthy. Our
expansion efforts outside of Quebec continue to bear fruit, but as of
yet only represent a very small portion of total revenues. As we
continue to create partnerships and expand our sales efforts, we expect
outside Quebec sales to become more significant," said CPL Technologies
President and CEO Jean Claude Desaulniers.
THIRD QUARTER HIGHLIGHTS
- Nine month period sales were up 24% compared to the same period last
year as a result of expanded sales efforts outside of Quebec.
- EBITDA totaled $426,748 for the nine month period this year compared
to $302,561 for the same period last year. CPL's EBITDA margins improved
by 3% to 25%.
- Net income margins improved once again to 9.5% for the nine month
period, compared to 7% for the same period last year.
OUTLOOK
"As the year comes to a close, we expect CPL will demonstrate its
ability to increase sales and overall profitability. Looking forward,
CPL will continue to focus its efforts on duplicating the success it
enjoys in Quebec in other provinces and countries. In an effort to
accelerate our foreign market penetration, we will actively seek out
regional strategic partners over the coming months," concluded Mr.
Desaulniers.
GRANTING OF STOCK OPTIONS
On November 7th, 2006, the board of directors granted to each director
and officer 15,000 stock options. These options were granted at an
exercise price equal to the market value of the common shares plus a
premium of 15%, or $0.14 per stock option. The stock options expire on
November 6th, 2011.This granting is subject to the approval of the TSX
Venture Exchange.
ABOUT CPL TECHNOLOGIES
CPL Technologies is a recognized leader in request management solutions
and the developer of the leading Helpdesk and Customer Service solution
CEnterprise. Since 1994, it has dedicated its efforts to delivering
unique solutions to the issues facing the Customer Service industry. The
Company delivers applications that are flexible, scalable and easy to
use. Through the years, CPL has acquired a wide range of customers
within a diverse array of industries. The Company client portfolio
includes well renowned companies such as Ubisoft, CGI and Orange Mobile,
among others. For more information please visit our website at
www.cpl-inc.com
CPL Technologies consolidated financial statements and the MD&A for the
third quarter ended September 30th 2006, are available on SEDAR
(www.sedar.com).
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of CPL Technologies. These statements
are based on suppositions and uncertainties as well as on management's
best possible evaluation of future events. The business of the Company
and these forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ from
expected results. A description of risk factors are discussed in the
Company's Annual MD&A and Annual Information Form, filed with the
securities regulatory authorities in Canada. The Company's business,
financial condition or operating results could be materially adversely
affected if any of these risks and uncertainties were to materialize.
Given these risks and uncertainties, investors should not place undue
reliance on forward-looking statements as a prediction of actual results.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
CPL Technologies Inc
Jean-Claude Desaulniers
President and CEO
866-978-1200 ext.1210
450-978-6665 (FAX)
jcdesaulniers@cpl-inc.com
or
Investor Relations
IntelHub Financial Corporation
Moses Bendayan, CFA
514-499-8482 ext. 201
moses@intelhub.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. |
