Bill, the financial data are attached to this posting. As DarkSide says, news releases are available at www.cdn-news.com
(known as CCN) as of 1996. Previous news releases are on Canada Newswire, www.newswire.com.
Stockwatch (www.canada-stockwatch.com) maintains all news releases for Paige.
Why am I bullish on Paige? Well, Bob Dickie got an excellent writeup in local papers for the invention of the flatplug, which was a solution to a problem. It does enhance safety and esthetics.
Also, since the article 3 years ago, Paige has slid downhill for various reasons. As much as I admire Mr. Dickie, the problems of litigation and production costs were getting out of hand for him and his team.
Enter Mr. Souza de Costa, who has considerable experience in the electrical industry, and who saw merit in Paige's intellectual property. He brings to the table:
1.capital resources from Formosa Cablecord (spelling?)
2.experience in cost-cutting (dropped SnapJack me-too line)
3.experience in manufacturing (new sonic weld process)
4.experience in litigation
5.experience in far east markets
6.very down to earth businesslike attitudes
7.respect for marketing, web pages, and public relations.
8.new brokerage liason (replacing Marleau Lemire)
Having met Mr. Souza de Costa and corresponded by email, I am impressed with his grasp of business essentials and his energy.
This company is very likely to make a profit in 1997. Modified manufacturing (achieving price parity) begins in March.
Any company can go wrong (especially with litigation) but a boat with a strong captain is not likely to go aground.
Fred Bealle
Toronto
att:
Paige Innovations Inc
PAG
Shares issued 13879504
1996-11-27 close $0.18
Thursday Nov 28 1996
News Release
Dr Alberto de Sousa Costa reports
The third quarter of fiscal 1996 was challenging for the management of Paige Innovations.
Paige terminated the licensing agreement with Pacific Electricord, an exclusive distributor of
FlatPlug in North America at the end of August 1996. PECO, in association with Fu-Won
Electrical, a manufacturer for PECO based in the People's Republic of China, willfully
infringed upon Paige's patent by manufacturing substandard counterfeit FlatPlug power
supply cords.
This termination adversely affected Paige's financial results. The inevitable legal suits that
followed significantly increase legal, consulting and associated costs which are reflected in
the selling and administration expenses in the third quarter of 1996.
Legal proceedings are in progress and management, along with legal counsel are confident
of a positive outcome in favor of Paige.
Paige has implemented an active worldwide surveillance management system to protect its
proprietary rights. Paige will continue to aggressively pursue the prosecution of those
parties that infringes upon its proprietary rights.
In order to capture a significant share in the conventional electrical plug market, Paige is
actively negotiating new licensing agreements with strategic original equipment
manufacturers in the Asia Pacific region. When concluded, the new arrangement will provide
for a substantial increase in revenue and better control on product evolution and
development. It should be noted that in this quarter, Paige completed the long process,
begun in 1994, of certification and delivery of the first quality assured FlatPlug production
run for the Japanese market. Since this market can now be effectively addressed, Paige is
finally poised to enter the consumer retail market in Japan.
In addition thereto, the application of advanced manufacturing process technology and
development of new product design is planned for introduction on a production basis during
the first quarter of 1997. This will result in the reduction of production costs of FlatPlug to
near parity with conventional plugs, which in turn will lead to significant inroads into the
highly competitive OEM market sector worldwide.
Financial Results
The losses for the nine months ended September 30 1996 are a reflection of poor sales
performance by the North American exclusive licensee and subsequent termination of the
licensing agreement.
Included in third quarter 1996 operating expenses are a writedown of obsolete inventory in
the amount US$45,000 and a bad debt provision of US$73,000.
The company continues to maintain a relatively strong balance sheet, with US$1.2 million in
cash and over US$1.0 million in working capital. At the end of the quarter shareholders
equity was US$1.8 million with no long-term debts resulting in a debt to equity ratio of 0.18:1.
STATEMENT OF EARNINGS
Three months ended September 30
(US$000's)
1996 1995
Sales $ (2) $ 56
Royalties 63 192
-------- --------
61 248
Cost of sales - 51
-------- --------
Gross profit 61 197
-------- --------
Operating costs
and expenses:
Selling and admin 625 161
International market
development 44 65
Research and
development 47 73
Depreciation 22 19
-------- --------
Total costs and
expenses 738 318
-------- --------
Income (loss) before
income tax $ (677) $ (121)
======== ========
Earnings (loss)
per share $ (0.049) $ (0.010)
STATEMENT OF EARNINGS
Nine months ended September 30
(US$000's)
1996 1995
Sales $ 31 $ 143
Royalties 325 650
-------- --------
356 793
Cost of sales 29 149
-------- --------
Gross profit 327 644
-------- --------
Operating costs
and expenses:
Selling and admin 895 674
International market
development 128 224
Research and
development 90 200
Depreciation 58 55
-------- --------
Total costs and
expenses 1,171 1,169
-------- --------
Income (loss) before
income tax (844) (515)
-------- --------
Earnings (loss)
per share $ (0.061) $ (0.040)
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
PS----I regret that stockwatch does not have updated director data and phone number...will fix that.
Fred |
