Firan Technology Group Corporation Announces First Quarter 2006 Earnings


Firan Technology Group Corporation Announces First Quarter 2006 Earnings

Toronto, April 17, 2006 – Firan Technology Group Corporation (TSX:FTG) today announced the first quarter 2006 results for the period ending March 3, 2006.

Net earnings after tax for the first quarter of 2006 rose to $178,000 versus a first quarter loss of $981,000 in 2005.

First Quarter Results: (three months ended March 3, 2006 compared with three months ended February 25, 2005)

Q1 2006 $13,363,000
Q1 2005 $12,031,000

Gross Margin
Q1 2006 $2,847,000
Q1 2005 $2,083,000

Operating Earnings (Loss) Before Tax
Q1 2006 $211,000
Q1 2005 ($931,000)

Net Earnings (Loss) After Tax
Q1 2006 $178,000
Q1 2005 ($981,000)

Earnings (Loss) per share – basic & diluted
Q1 2006 $0.01
Q1 2005 ($0.06)

Net sales increased by $1,332,000 or 11.0%, from $12,031,000 in the first quarter of 2005 to $13,363,000 in the first quarter of 2006. The Circuits Segment grew by $1,160,000 or 11.6% over the same period last year. Improving market conditions and improved production yields drove the year over year improvement. The Aerospace segment also grew over the same quarter last year by $172,000 or 8.4% due to higher Quick Turn activity and increased shipments to key customers. Although we are striving to minimize the effects of the strength of the Canadian dollar versus the U.S. dollar, it continues to have a negative impact on our reported sales by approximately $710,000 versus the same quarter of 2005.

Gross margin increased by $764,000 to $2,847,000 or 21.3% of sales for the first quarter of 2006 as compared with $2,083,000 or 17.3% of sales in the first quarter of 2005. The increase in gross margins is directly attributable to the higher throughput and yields in the FTG Circuits business. FTG Aerospace margins have improved by 1% over the same period as last year despite the new product development costs associated with the Lighting Power Supply (LPS) for use on the new Bell 429 platform. These costs were expensed in the quarter and had a small drag on earnings. The strength of the Canadian dollar negatively impacted overall gross margin by approximately $200,000 to $300,000.

Net earnings for the first quarter of 2006 were $178,000 or $0.01 per share ($0.01 per diluted share) as compared with a loss of $981,000 or $0.06 per share (loss of $0.06 per diluted share) in the first quarter of 2005.

“The aerospace and defence market remains robust. This bodes well for both of FTG”s businesses as we are well positioned to capitalize on this growth. To continue to grow with the market, FTG is focused on achieving Operational Excellence. Our customers demand high quality products, on time delivery and outstanding customer service. We focus on improving our performance in all of these areas every day,” stated Mr. Bradley Bourne, President and CEO.

“To continue to improve our financial results we look to grow our revenue and to control our costs. With a new integrated sales force, we are seeing increased opportunities from existing and new customers. To support the increased revenues, we are beginning to develop expansion plans, particularly in Chatsworth, CA. To control costs, our primary focus is on improving production yields and implementing lean manufacturing techniques across the Company. Also, we are currently in negotiation with our represented employees at our Circuits facility in Toronto and we anticipate reaching a new contract in our second quarter on terms that are good for our employees and for the Company,” added Mr. Joe Ricci, Vice President and CFO.

The Company will host a live conference call on April 18, 2006 at 8:30am (EDT) to discuss the results of the first quarter of 2006.

Anyone wishing to participate in the call should dial 416-695-9722 or 1-888-333-4519 and identify that you are calling into the FTG conference call. The Chairperson is Bradley Bourne. A replay of the call will be available until May 2, 2006. The number to call for a rebroadcast is 416-695-5275 or 1-888-509-0081 and the verbal password for the rebroadcast is 618450.


FTG is an aerospace and defence electronics product and subsystem supplier to the North American marketplace. FTG has two operating units.

FTG Circuits is a manufacturer of high technology/high reliability printed circuit boards. Our customers are leaders in the aviation, defence, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California.

FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of avionics products as well as airframe manufacturers.
The Company’s shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release may contain certain forward-looking statements. Such statements are based on the current expectations of management of the Company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Company”s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. The Company does not undertake and has no specific intention to update any forward-looking statements, written or oral that may be made from time to time by or on its behalf whether as a result of new information, future events or otherwise.

For further information please contact:

Bradley C. Bourne, President and CEO Tel: (416) 299-4000 x314
Firan Technology Group Corporation

Joseph R. Ricci, Vice President and CFO Tel: (416) 299-4000 x309
Firan Technology Group Corporation

Additional information can be found at the Company”s website;