Firan Technology Group (FTG) Announces Robust Sequential Revenue Growth In Q1 2008
Firan Technology Group (FTG) Announces Robust Sequential Revenue Growth In Q1 2008
Toronto, April 10, 2008 – Firan Technology Group Corporation (TSX:FTG) today announced the first quarter 2008 financial results.
FTG experienced strong bookings across the Corporation in Q1 2008. Bookings in the quarter were up 31% from Q4 2007 and up 53% from Q3 2007. Total bookings in the quarter were more than $16M and the book-to-bill for the Corporation was 1.18:1. The book-to-bill was 1.10:1 for FTG Circuits-Toronto, 1.40:1 for FTG Circuits-Chatsworth and 1.18:1 for FTG Aerospace. Bookings were strong from existing and new customers. Total backlog of orders at the end of Q1 were $16.5 M.
Q1 2008 Results (three months ended February 29, 2008 compared with three months ended March 2, 2007)
Q1 2008
Sales: $13,598,000
Earnings before:
-Net R&D
-Filtran restructuring losses
-Income Tax (Recovery)/Expense: $161,000
Less:
Net R&D Investment: $863,000
Filtran Restructuring and Losses: $368,000
Income Tax (Recovery) / Expense: ($23,000)
Net (Loss) / Earnings: ($1,047,000)
(Loss) / Earnings per share:
-basic ($0.06)
-diluted ($0.06)
Q1 2007
Sales: $13,911,000
Earnings before:
-Net R&D
-Filtran restructuring losses
-Income Tax (Recovery)/Expense: $718,000
Less:
Net R&D Investment: $190,000
Filtran Restructuring and Losses: $0.00
Income Tax (Recovery) / Expense: $46,000
Net (Loss) / Earnings: $482,000
(Loss) / Earnings per share:
-basic $0.03
-diluted $0.02
The Corporation’s revenue grew in Q1 2008 to $13,598,000, an increase of $1,035,000 or 8% sequentially over Q4 2007. Revenue was down $313,000 or 2% compared to the same quarter 2007. However, excluding the impact of the strengthening Canadian dollar versus the US dollar, revenue was up approximately $1.5M or 11% over the same period last year. The Canadian dollar has strengthened over 16% between February 2007 and February 2008 and 77% of FTG’s sales are in US dollars. The acquisition of Filtran increased revenues by $442,000 during the final two months of the quarter. This impact is expected to grow as qualification activities are concluded and production ramps up at FTG’s existing facilities.
Q1 2008 sales for the Circuits’ segment were $10,569,000, an increase of $861,000 or 9% sequentially over Q4 2007. Sales were up at both facilities. For the Aerospace segment, sales in the first quarter were $3,029,000 compared to $2,855,000 in Q4, 2007, an increase of $174,000 or 6%.
FTG incurred an operating profit before R&D, Filtran related restructuring costs, Filtran integration costs and taxes in Q1 2008 of $161,000. The Filtran costs excluded are the losses incurred at Filtran before the closure of that facility as well as the restructuring costs at FTG facilities related to the transition of Filtran work to these facilities.
Net loss for the first quarter was $1,047,000 compared to net income of $482,000 in the comparable quarter in 2007. The Q1 2007 income includes $395,000 in SR&ED tax credits that were later eliminated. Impacting the Q1 2008 net loss was the one time transition, integration and restructuring costs associated with the Filtran acquisition of $368,000 and the impact of the strengthening Canadian dollar of $1,041,000. Excluding these factors, net income in Q1 2008 would have been $275,000 higher than Q1 2007.
FTG accomplished many goals in Q1 2008 that continue to improve the Corporation and position it for the future, including:
– The acquisition of the assets of Filtran Microcircuits, Inc.
– The qualification of existing FTG facilities to build the Filtran
products for a number of different customers
– The award from General Dynamics Canada recognizing supplier
excellence for FTG Circuits-Toronto
– 12% increase in sales within Canada compared to Q4 2007, lessening
the Corporation’s exposure to currency fluctuations
– Continued higher technology activity across all three sites
– Expansion of FTG-Circuits Chatsworth facility by 8,500 square feet or
35% to accommodate equipment and activity from Filtran.
As at February 29, 2008, the Corporation’s primary source of liquidity included accounts receivable of $11,522,000 and inventory of $8,442,000. Net working capital at February 29, 2008 was $7,574,000.
“Our first quarter in 2008 saw significant improvement across our business. Bookings and sales were strong. Our bottom line improved dramatically from the previous quarter. We acquired Filtran and made great strides in integrating the business into FTG. Offsetting all of this is the challenge posed by the ongoing strength of the Canadian dollar,” stated Mr. Brad Bourne, President and Chief Executive Officer. “To address the currency challenge we remain committed to our strategy of Operational Excellence to improve our internal performance, and to aggressively invest in R&D to improve our technological capabilities to grow the business. Based on the current strength of the Aerospace and Defense market and our backlog going into our second quarter, we anticipate continued improvement in our financial results going forward”, he added.
The Company will host a live conference call on Friday, April 11, 2008 at 8:30am (EDT) to discuss the results of Q1 2008.
Anyone wishing to participate in the call should dial 416-641-6140 or 1-866-542-4265 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Bradley Bourne. A replay of the call will be available until April 18, 2008 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-695-5800 or 1-800-408-3053, pass code 3257684.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense 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, defense, 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.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. 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. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, 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
bradbourne@ftgcorp.com
Joseph R. Ricci,
Vice President and CFO
Tel:(416) 299-4000 x309
Firan Technology Group Corporation
joericci@ftgcorp.com
Additional information can be found at the Company’s website www.ftgcorp.com
