Well, the news release is out as promised by Mr. Kavanagh and it does look good. Although I was hoping more for a backlog of orders, one has to remember that this company is still in its infancy and as word spreads on their TPF technology...more and more orders will be coming in. Sales for 1997 have increased over 500 percent!! A very important point is the reduction of debt which now improves the cash flow for the company. There is also the potential of more than 10 licensees to market the TPF technology....this will again filter down to the bottom line in increasing revenues.
Year end financial results
Innomat Solutions Corp INAT
Shares issued 31,662,357 May 4 close $0.12
Mon 4 May 98 News Release
Mr. Paul Kavanagh reports
Sales for the year ended Dec. 31, 1997 of $2,187,832 represent an increase
of 538 per cent over 1996 results. Operating losses for the year of
$956,668 were lower by $338,252 from the previous year and reflect a major
shift in refocusing on higher margin revenue and investment made in the
redirection of the company in the second half of the year. Forgiveness of
$1.2-million of long term debt in return for the issuance of $1,084,370
common shares and a $300,000 loan redemption reduced net losses to $309,621
substantially improved the balance sheet and cash flow of the company.
The company is pleased with the overall performance of the company during a
year in which a major re-positioning of the company took place. Of
particular note, the shift in focus towards selective sales with higher
gross margins are reflected in the order book going into 1998 where margins
have increased four fold compared to the first half of 1997. Although
revenues were dramatically higher than in 1996 they were lower in 1997 than
originally expected due to more margin selectivity as well as
uncontrollable delays in shipping certain orders. As a result, the company
entered 1998 with a significant backlog of booked orders in excess of
$1.0-million.
The last six months of 1997 represented a milestone for the company in
building a broader foundation for greater growth and profit potential in
the long term. The addition of the exclusive marketing rights to a new
plastics processing technology TPF (Thermoplastic Flowforming), is the core
technology on which the company will develop its plans to be a totally
integrated solutions provider of innovative plastic materials and products
for the materials handling market. The company has already received a
number of orders from large manufacturers for prototype runs of parts made
using the TPF process. Also, the strategy to capitalize on the TPF
technology by sub-licencing the right to use the proprietary software to
plastics manufacturers in a number of different markets, has already begun
to yield a number of prospects and negotiations have commenced with more
than 10 potential licencees.
Activities in the last quarter of 1997 and first few months of 1998 have
produced promising initial results. With the recent addition of TPF and the
pending acquisition of Brunswick International Container Systems Inc., 1998
is shaping up to be an exciting growth year for the company.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
|
