Artaflex Inc V.ATF

Quarter is Here & Very, Very Encouraging

[musing]

Here is the link, followed by the financials. https://stockhouse.com/news/news.asp?newsid=2406827&tick=ATQ Adeptron Technologies Q2 2004 Revenue grows to $9.6 million 8/12/04 TORONTO, Aug 12, 2004 (Canada NewsWire via COMTEX) -- Adeptron Technologies Corporation (TSX: ATQ) ("Adeptron" or the "Company"), a provider of Electronic Manufacturing Services ("EMS") to the global electronics industry, reports today the financial results for the three-month and six-m onth periods ending June 30, 2004. Revenue for the second quarter 2004 was $9.6 million, compared to $6.0 million in the first quarter 2004, representing a roughly 62% quarter- over-quarter increase in revenues. Second quarter 2004 revenues also represent a $6.0 million, or approximately 170%, increase over second quarter 2003 revenues of $3.6 million. This increase over revenues in the corresponding quarter 2003 is made up of roughly $3.0 million contributed by the Ottawa operations, acquired in the first quarter 2004, and roughly $3.0 million, or approximately 83% of second quarter 2003 revenues, contributed organically from the Company's original operations in Markham. F. Michael Marti, President and CEO of Adeptron, commented: "We are seeing significant demand from several of the industry sectors that we have identified as Adeptron's key strategic target markets: wireless and radio frequency identification (RFID) products and industrial process and control products." In the second quarter 2004, gross margin was $1.0 million, or approximately 10%, representing an increase of $0.9 million over the Company's gross margin of $0.1 million in the first quarter 2004. This also compares favourably to the gross margin for the second quarter 2003, which was $0.3 million, or approximately 9%, in the comparative period of 2003. "The significant increase in gross margin in comparison to the first quarter 2004 can be attributed to several factors, including the requoting of selling prices and improved foreign exchange conditions in the current quarter," said Marti. "Also importantly, as our sales volume increases, resulting in more efficient absorption of fixed manufacturing costs, our gross margins should improve even more." Selling, General and Administrative ("SG&A") expenses for the second quarter 2004 were $1.4 million which represent approximately 14% of sales compared to SG&A expenses at approximately 22% of sales in the first quarter of 2004 and SG&A expenses at approximately 20% of sales in the second quarter 2003. "It is important to note that Adeptron's revenues and gross margins are increasing at a more dramatic rate than SG&A. This is consistent with our strategy of growing top line revenue, both organically and through acquisition, while keeping SG&A expense increases to a minimum. For the reminder of 2004, we expect that there will be no significant increases in our SG&A, therefore as a percent of sales SG&A will be lower," said Marti. In the second quarter 2004, Adeptron recorded adjusted net earnings(x) of $58,090, compared to the adjusted net loss(x) of $509,128 in the first quarter 2004 and the adjusted net loss(x) of $23,414 in the second quarter 2003. The GAAP net loss for the second quarter of 2004 was $0.6 million ($0.02 per share), a reduction of $0.5 million compared $1.1 million ($0.03 per share) in the first quarter of 2004 and $0.5 million (0.01) in the corresponding period of 2003. Mr. Marti continued: "In second quarter 2004, we recorded positive net earnings on an adjusted basis(x). We currently expect that both adjusted net earnings(x) and cash flow will improve in the third quarter." "Although we expect that the incremental growth rate in revenues for the rest of the year will be less dramatic than what we experienced from first quarter to second quarter 2004, we currently anticipate that our quarterly revenue run rate will continue to build from our Q2 levels. As a result, Adeptron's push to accounting profitability on a quarterly basis should also similarly continue its progress," said Marti. Adeptron's complete financial statements for the three-month and six-month periods ended June 30, 2004 and 2003, along with the accompanying Management's Discussion and Analysis for the same periods, will be posted today on Adeptron's web site at www.adeptron.com. Selected comparative financial information for the three-month and six-month periods ending June 30, 2004 and 2003: 3-Month 3-Month 6-Month 6-Month Period Period Period Period Statement of Operations June 30, June 30, June 30, June 30, and Deficit (Unaudited) 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Revenue $9,612,322 $3,559,169 $15,561,286 $6,989,169 Gross Margin $965,209 $324,070 $1,066,690 $535,562 Gross Margin % 10% 9.1% 6.9% 7.7% Selling, General & Admin. $1,359,398 $744,085 $2,679,399 $1,366,744 Adjusted net earnings/ (Loss)(x) $58,090 $(23,414) $(451,038) $(27,545) Net Loss per GAAP ($628,694) ($445,770) ($1,754,952) ($962,314) Net Loss per Share ($0.02) ($0.01) ($0.05) ($0.03) Weighted average number of shares outstanding - basic and diluted 34,507,735 30,862,157 33,830,124 30,862,157 Balance Sheet June 30, March 31, Dec. 31, 2004 2004 2003 (Unaudited) (Unaudited) (Audited) ------------ ------------ ------------ Current Assets $11,094,529 $9,719,513 $12,448,256 Current Liabilities $9,530,004 $7,973,389 $10,650,463 Total Liabilities $5,757,697 $5,628,404 $6,198,677 (x) Reconciliation of adjusted net earnings/(loss) as reported above to GAAP Net Loss: 3-Month 3-Month 6-Month 6-Month Period Period Period Period Ending Ending Ending Ending June 30, June 30, June 30, June 30, 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Adjusted net earnings/ (Loss) $58,090 $(23,414) $(451,038) $(27,545) Add/(Deduct) Interest on Long-term Debt and Capital Leases $(122,460) $(15,846) $(199,893) $(26,027) Other Interest $(74,387) $(32,881) $(137,187) $(68,596) Income Tax Recovery NIL $82,549 NIL $82,549 Depreciation $(441,072) $(424,041) $(875,854) $(860,843) Amortization $(25,865) $(25,865) $(51,730) $(51,730) Non-cash stock-based compensation $(23,000) $(6,272) $(39,250) $(10,122) Net Loss per GAAP $(628,694) $(445,770) $(1,754,952) $(962,314) Adjusted net earnings/(loss) (earnings before interest, taxes, depreciation, amortization and non-cash stock-based compensation) has been presented to supplement the GAAP financial information. Adjusted net earnings/(loss) does not have any standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures presented by other issuers. Adeptron believes that adjusted net earnings/(loss) is a meaningful measure of operating performance, as it facilitates period-to-period operating comparisons by excluding certain non-cash items such as non-cash interest, taxes, depreciation, amortization and non-cash stock-based compensation. Adjusted net earnings/(loss) is not a measure of operating performance under GAAP and should not be considered in isolation or as a substitute for net earnings (loss) prepared in accordance with GAAP. ABOUT ADEPTRON Adeptron is an ISO 9001:2000 registered EMS company, providing a complete range of product development and delivery services to the global technology and electronics industry, including design, prototyping, manufacturing, assembly, testing, product assurance, supply chain management, worldwide distribution and after-sales service. Adeptron is a public company whose common shares are listed for trading on The Toronto Stock Exchange under the symbol: "ATQ". The Company has approximately 34.5 million common shares outstanding. Visit Adeptron at: www.adeptron.com or www.investorfile.com. THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM. %SEDAR: 00012076E VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=97974 For further information: Adeptron Company Contact: F. Michael Marti,President & Chief Executive Officer, Tel: [phone],fmmarti(at)adeptron.com; Adeptron Investor Relations: Gerry Wimmer,INVESTORFILE.com, Tel: [phone], Toll Free: 1-888-894-8222,atq(at)investorfile.com;To request a free copy of this organization's annual report, please go tohttps://www.newswire.ca and click on reports(at)cnw.