Element 21 Golf Announces Record Fiscal Fourth Quarter and Year-End Results
Fourth Quarter Revenue Increases by 686% and Exceeds Previously Announced Guidance by More Than 10%; Annual Operating Expenses Decline 21%
October 02, 2008: 09:00 AM EST
Element 21 Golf Company (OTCBB: ETGF) (FRANKFURT: BJQ) -- the leading manufacturer of advanced Scandium Alloy golf and fishing equipment, announced today record results for its fourth quarter and fiscal year ended June 30, 2008. The Company generated fourth quarter revenue of $888,808, an increase of 686% compared to revenue of $112,963 in the same period in fiscal 2007. The fiscal 2008 fourth quarter revenue also exceeded the Company's revenue pre-announcement by more than 10%, when it expected to generate revenue of approximately $791,000 for the 2008 fiscal fourth quarter. The fourth quarter represented the Company's sixth consecutive quarterly sequential increase in revenue.
For the fiscal year ended June 30, 2008, Element 21 reported revenue of $1,841,370, an increase of 705% compared to $228,599 in revenue during fiscal year 2007. The increase in revenue was primarily a result of the launch of the fishing line. During fiscal year 2008, general and administrative costs declined 21% or $1,517,415 from $7,127,430 in fiscal 2007 to $5,610,015 in fiscal 2008.
"We are pleased that we continue to experience growing adoption of both our golf and fishing product lines," said Nataliya Hearn, President and CEO of Element 21. "Our strong revenue during fiscal 2008 reflects the success of our marketing initiatives, where we have increased our distribution significantly. In addition to improving our top-line results, our ability to leverage marketing relationships has allowed us to reduce expenses significantly, even while we capitalize on significant growth opportunities. Despite a challenging economic environment, we remain confident that our ability to deliver a unique experience for the golfer and fisherman will allow us to continue our rapid growth."
About Element 21 Golf Company:
Element 21 Golf Company develops and markets award winning golf and fishing products made from the Company's next-generation, proprietary Scandium Alloys. Element 21's high performance products deliver dramatic improvements in distance, consistency, accuracy and feel over the most popular products in the US $5.5 billion golf and the US $48 billion international fishing markets.
Originally developed for advanced aeronautics in jet fighters, Element 21's patented Scandium Alloys provide the highest strength-to-weight ratio of any material currently used in sports -- 25% improvement over Titanium, 40% improvement over Graphite/Epoxy, 52% improvement over Aluminum, 70% improvement over Steel. They also provide unique vibration dampening properties resulting in products with unprecedented feel over competing materials.
Element 21 Golf Company has recently expanded its product line to include fishing equipment that has quickly secured international recognition by winning several top honors at ICAST 2008 and ICAST 2007, the world's largest sports fishing trade show.
Forward-Looking Statements.
Statements in this release, other than statements of historical fact, may be regarded, in certain instances, as "forward-looking statements" pursuant to Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934, respectively. "Forward-looking statements" are based on expectations, estimates and projections at the time the statements are made, and involve risks and uncertainties which could cause actual results or events to differ materially from those currently anticipated, including but not limited to delays, difficulties, changed strategies, or unanticipated factors or circumstances affecting e21 and its business. A number of these risks and uncertainties are described in e21's periodic reports filed with the Securities and Exchange Commission. There can be no assurance that such forward-looking statements will ever prove to be accurate and readers should not place undue reliance on any such forward-looking statements contained herein, which speak only as of the date hereof. Element 21 undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contacts:
Company Contacts:
Investor Relations
CEOcast, Inc.
Dan Schustack
212-732-4300
dschustack@ceocast.com
Sales (no investor related calls please)
Element 21 Golf Company
1-888-365-2121 ext 106
sales@e21golf.com
e21golf.com
Media members interested in testing shafts or
receiving e21 products for editorial review can contact:
The Media Group
Joe Wieczorek
Bart Henyan
1-847-956-9090
joe@themediagroupinc.com
bart@themediagroupinc.com |
