SERVICE SECTOR / Techcorp Industries First Quarter Financial Results
Techcorp Industries
"TCA" - Alberta Stock Exchange
June 24, 1998 close: $0.70
FIRST QUARTER FINANCIAL RESULTS
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.
|
