SECOND QUARTER FINANCIAL RESULTS
July 31, 1998 July 31, 1997
Revenue $2,457,800 $0
Gross Margin 1,260,706 0
Net Earnings (Loss) 744,141 (4,194)
Earnings Per Share (basic) $0.06 $0.00
Cash Flow From Operations 986,681 (4,194)
Cash Flow From Operations Per Share (basic)$0.08 $0.00
Weighted Average Shares Outstanding 13,132,500 6,300,000
Mr. Arnold Wong, President of Techcorp Industries Inc. today announced financial results for the six months ended July 31, 1998. The Company generated revenue of $2,457,800, net earnings of $744,141 ($0.06 per share) and cash flow of $986,681 ($0.08 per share). Techcorp incurred general and administrative expenses of $263,601, and amortization expenses of $242,540.
During the quarter, Techcorp delivered the final three of six RPM System 3000TM Rotating Blowout Preventers sold to a Canadian oil service company. Leader Energy Services, Inc. acted as authorized agent for this sale.
The Company has finalized engineering files for both the Techcorp RPM System 1500TM and the RPM System 5000TM Rotating Blowout Preventers, and is in the manufacturing stage to supply various customers with these products shortly. The RPM System 1500TM is a compact, light-weight rotating blowout preventer used in low pressure underbalanced, geothermal and air drilling applications. The RPM System 5000TM is a high pressure rotating blowout preventer used predominantly in high pressure offshore operations. The design of Techcorp's Rotating Blowout Preventer systems allows oil and gas companies to substantially decrease the present costs of services, while at the same time dramatically improve safety and reduce rig time.
Techcorp began manufacturing a line of External Casing Packers (ECP) during the second quarter, which are frequently used in both conventional and underbalanced completion programs. This product line will increase Techcorp's market penetration revenues in the well control market.
Techcorp commenced an aggressive marketing campaign at the start of its 1999 fiscal year by participating at two international oil shows, OTC'98 in Houston, Texas, and the 1998 National Petroleum Show in Calgary, Alberta. The Company received very favorable reviews at these shows, and is continuing its marketing efforts at other international oil and gas shows.
The outlook for Techcorp's products remains excellent, in large part because they are oriented to reducing costs while offering significant operational advantages. Management is extremely satisfied with the financial performance of the Company to date, and looks forward to continuing corporate revenue and earnings growth during the remainder of the year.
Techcorp would like to thank its shareholders for their commitment as it strives to maximize the value of their investment in the Company. Third quarter financial statements are expected to be released the week of December 14. Techcorp will be changing its year-end reporting to December 31, from January 31. Fiscal 1998 will therefore encompass an eleven month period.
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.
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