RICHMOND, BC Mr. James L Swanson, Chairman of CON-SPACE Communications Ltd. (TSX-VEN:CCB) today announced a twenty-two percent increase in corporate sales during the Companys first quarter of fiscal 2004 ended September 30, 2003.
Given the strength of the Canadian dollar and the fact that a majority of our sales are in US dollars, we are very pleased to announce first quarter sales of $963,518, which is an increase of 21.6% over the $792,475 achieved during the first quarter of last year, said Swanson. The rise in the Canadian dollar effectively decreased our actual sales number for this quarter by approximately $200,000, which would have gone mostly to profits.
The weak US dollar has adversely affected the bottom line of every Canadian company with exports to the USA. Although CON-SPACE experienced an increase in sales, management intends on implementing a price increase on all its products along with instituting a program to reduce expenses for the balance of this fiscal year.
First quarter gross profit rose by 27% to $485,468 by the end of the September 2003 compared to $375,236 a year earlier. However, operating costs rose by $156,099 or 41.2% to $461,862 from last years $305,763 and resulting profits declined to $11,073 or $0.00 per share compared to last years profit of $57,021 or $0.01 per share for the same quarterly period. The action taken by the Company to increase prices and reduce costs will be reflected in future financial reports. We remain very positive about this fiscal year as we continue to work on a number of major orders which would have a significant impact on our future, concluded Swanson.
The Companys world headquarters are located in Richmond where all design and manufacturing takes place. CON-SPACE is recognized worldwide as a leading provider of specialized voice communication equipment for hazardous work environments. Their products are used extensively by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities, and general industry and by medical emergency services the world over. The Company has established distribution throughout North America, Great Britain, Australia, parts of Asia, South America, and Europe and also supplies many other manufacturers with Private Labeled and specially designed products. Its web site is www.con-space.com.