FIRST QUARTER FINANCIAL RESULTS
Released June 24, 1998
April 30, 1998
Revenue $1,050,000
Gross Margin 587,944
Net Earnings (Loss) 349,211
Earnings Per Share (basic) $0.03
Cash Flow From Operations 473,594
Cash Flow From Operations Per Share (basic) $0.04
Weighted Average Shares Outstanding 13,132,500
Mr. Arnold Wong, President of Techcorp Industries Inc. today announced financial results for the first quarter ended April 30, 1998. These results represent Techcorp's first equipment sales. The Company generated revenue of $1,050,000, net earnings of $349,000 ($0.03 per share) and cash flow of $473,000 ($0.04 per share). Techcorp incurred general and administrative expenses of $109,000, with amortization costs of $124,000.
During the quarter, Techcorp delivered three RPM System 3000TM Rotating Blowout Preventers to Alpine Oil Services Corporation. These are the first of six units to be delivered to Alpine by the end of May, and will result in an additional $1,050,000 of revenue. Leader Energy Services, Inc. acted as authorized agent for this sale.
Techcorp commenced an aggressive marketing campaign at the start of its 1999 fiscal year. In addition, the Company was present at two international oil shows, OTC'98 in Houston, Texas, and the 1998 National Petroleum Show in Calgary, Alberta. Approximately 80,000 delegates attended these two oil shows, and the Company has received numerous inquiries as a result of its presence.
During the quarter, management finalized plans to design the Techcorp RPM System 1000TM Diverter Head. This new system features a lightweight, compact design and will be used in low pressure underbalanced and conventional drilling applications.
The Company will finalize engineering files for the Techcorp RPM System 5000TM during the third quarter, and expects to construct a prototype system in the fourth quarter. This system will be utilized in high pressure environments offshore. The design of these systems will allow oil and gas companies to substantially decrease present costs of services, while at the same time dramatically improve safety and reduce rig time.
Techcorp is also developing a new line of External Casing Packers (ECP). These ECP's are frequently used in both conventional and underbalanced completion programs for zonal isolation and casing annulus segregation. Engineering of the ECP product line is complete, and a production run will be completed this year. This product line will increase Techcorp's market penetration and revenues in the underbalanced well control market.
Techcorp Industries Inc. is a research and development company involved in the design and manufacture of proprietary products for the energy sector. As an original equipment manufacturer (OEM), Techcorp is actively involved in the sale and rental of this equipment through authorized agents. In addition, Techcorp also pursues transfer of technology agreements and the licensing of their design files.
Techcorp's dedication to quality and its corporate philosophy to develop technical, innovative products will continue to enhance its future success. Techcorp currently offers, or will be offering shortly, the following products:
Rotating Blowout Preventer (RPM System 3000TM): The most compact Rotating BOP and automated Control System available. With a static working pressure of 3,000 psi, the RPM System 3000TM provides significant operational and safety advantages over conventional rotating control heads and other rotating BOP systems.
Rotating Blowout Preventer (RPM System 5000TM): A high pressure Rotating BOP for offshore applications. A prototype system will be tested during the fourth quarter.
Rotating Blowout Preventer (RPM System 1000TM): A lightweight, compact Rotating BOP used in low pressure underbalanced and conventional drilling applications will be introduced in the fourth quarter.
Electronic Gauge Carrier System: The world's smallest, lightest and most versatile electronic gauge carrier. Providing multi-service capabilities, the Gauge Carrier houses two miniature electronic pressure and temperature memory gauges that can be set up to monitor either tubing or annulus pressures. Current applications include open and cased hole drill stem testing, underbalanced drilling operations, and cased hole tubing conveyed perforating (TCP).
Underbalanced Drilling Deployment Valve (UBD ValveTM): Relieves the well operator of having to snub in and out of the well, thereby reducing rig time and providing improved personnel safety; and allowing surface equipment to be isolated in the event of a problem. Arrangements have been made with three potential customers to use the UBD ValveTM during underbalanced drilling programs.
External Casing Packers (ECP): Used in both conventional and underbalanced completion programs for zonal isolation and casing annulus segregation. Engineering of the ECP product line is complete, and a production run will be completed this year.
"The Alberta Stock Exchange has neither approved or disapproved of this information."
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