YEAR END FINANCIAL RESULTS
May 11, 1999
Eleven Months ended 12/31/98 Twelve Months ended 1/31/98
Revenue $3,056,099 $0
Gross Margin 1,521,851 0
Net Earnings (Loss) 662,873 (114,074)
Earnings Per Share (basic) $0.05 ($0.02)
Cash Flow From Operations 953,318 (87,474)
Cash Flow From Operations Per Share (basic) $0.07 ($0.01)
Weighted Average Shares Outstanding 13,141,600 7,141,808
Mr. Arnold Wong, President of Techcorp Industries Inc. today announced financial results for the eleven months ended December 31, 1998. The Company generated revenue of $3,056,099, net earnings of $662,873 ($0.05 per share) and cash flow of $953,318 ($0.07 per share). Techcorp incurred general and administrative expenses of $552,000 and amortization expenses of $290,445. The Company holds a healthy current position of $511,435 and no long term debt.
Techcorp achieved four important objectives during 1998: market penetration for its original product, the RPM System 3000TM; the establishment of a system of authorized distribution and service agents for North America; achieving profitability; successful development, testing and introduction of five new products.
In addition to its inaugural product, the RPM System 3000TM rotating blowout preventer, Techcorp is now manufacturing the smaller RPM System 1500TM, which will be offered for sale in the coming months. Testing of the RPM System 5000TM continues, with prototyping expected in mid-1999. This larger system is intended for well control during offshore operations. Each of these systems allow oil and gas companies to substantially decrease the costs of services, while at the same time dramatically improving safety and reducing rig time.
Techcorp now offers External Casing Packers (ECP), which are frequently used in both conventional and underbalanced well completion programs. Offered in a variety of technical specifications, this product line will increase our penetration in the well control market. Techcorp's Electronic Gauge Carrier systems incorporate two miniature electronic pressure and temperature memory gauges, which monitor tubing or annulus pressures. Current applications include open and cased hole drill stem testing, underbalanced drilling operations, and tubing conveyed perforating.
One of the most anticipated products that Techcorp has been developing, the Underbalanced Drilling Deployment Valve (UBD ValveTM), is now in limited production prior to commercial introduction. Run as an integral part of the casing program, the UBD ValveTM allows full bore passage for the drill bit, allows the drill string to be tripped without the use of a snubbing unit or the need to kill the well when tripping, and offers significant savings and personnel safety. These cost savings include solids recovery, well control, compression, nitrogen, directional and rig costs. Interest in this product has been extremely high from a number of areas in the world, even prior to the commencement of marketing.
A key objective for our Company during the coming year will be to maximize marketing efforts on our existing suite of products, thereby firmly establishing Techcorp in the equipment markets it has chosen to operate within. Techcorp firmly believes that it offers the best choice in well control products.
Techcorp Industries Inc. conducts research and development programs through its subsidiary companies and other affiliates, that are involved in the design and manufacture of proprietary products for the energy sector. Techcorp's wholly-owned subsidiary is an original equipment manufacturer (OEM), and is actively involved in the sale and rental of their equipment world-wide through authorized agents. In addition, it also pursues transfer of technology agreements and the licensing of its proprietary design files.
“The Alberta Stock Exchange has neither approved or disapproved of this information.” |
