Victoria, BC – October 30, 2003 – Carmanah Technologies Corporation (TSX VE: CMH) is pleased to announce its first quarter results for the three months ended March 31, 2002 and 2001.
For the three month period ended March 31, 2002, the Company recorded a record quarter with revenues of $1,381,044. This was an increase of 65% over the same period in 2001. Revenue growth was achieved through (1) the continued growth of marine sales in existing product lines, (2) expansion into the railway and mining markets with existing products, and (3) expansion into the transportation and transit markets with entirely new products. Unit sales increased from 3,241 units sold and delivered for first quarter 2001 to 4,860 for first quarter 2002.
Direct cost of goods totaled $598,330 in the three month period ended March 31, 2002 as compared to $394,214 for the three months ended March 31, 2001. Gross profit as a percentage of sales at March 31, 2002 was 57% as compared to 53% during same period in 2001. This is a result of the Company’s movement towards more direct selling through dedicated sales staff and an aggressive e-commerce program.
Total operational expenses for the three month period ended March 31, 2002 were $831,242 overall, a 65% increase over the $503,747 in the same period in 2001. This is the result of increased staff and administrative expenses to support the Company’s expansion into new products and new markets. Increasing investment is being made into markets that will be primary sources of revenues in the months and years to come.
Net loss for the three month period ended March 31, 2002 was $48,528 as compared to a net loss of $60,107 for the same period in 2001. The overall loss position is a result of additional resources and administrative expenses required to provide and support the extensive sales and marketing activities. The Company also made a further investment of $155,894 into research and development expenses during the three month period ended March 31, 2002 as compared to $98,312 in the same period in 2001.
The Company’s cash balance increased from $192,623 as at March 31, 2001 to $1,174,918 as at March 31, 2002, an increase of $982,295. The increase was primarily attributable to the cash received pursuant to the financing carried out in conjunction with the reverse takeover of Carmanah Technologies Inc. (“CTI”) in 2001.
About Carmanah Technologies Inc.
Carmanah designs, manufactures and supplies patented, proprietary solar-powered LED lighting solutions to the marine, railway and roadway markets. The Company has distributors in over 80 countries and now has more than 44,000 units installed worldwide.
The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol “CMH”. For further information, please visit www.carmanah.com.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
” Praveen Varshney “
Praveen Varshney, Director
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
March 31, 2002 and December 31, 2001
(Prepared by Management)
| March 31, | December 31, | ||
| 2002 | 2001 | ||
| (unaudited) | (audited) | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 1,174,918 | $ 1,060,817 | |
| Accounts receivable | 738,482 | 358,958 | |
| Taxes recoverable | 5,409 | 23,888 | |
| Prepaid expenses and deposits | 41,642 | 26,777 | |
| Inventories | 662,864 | 587,439 | |
| Current portion of advances receivable | 43,586 | 49,472 | |
| 2,666,901 | 2,107,351 | ||
| Advances receivable | 111,500 | 111,500 | |
| Capital assets | 286,484 | 279,873 | |
| Deferred development costs | 158,289 | 216,895 | |
| Patents and other intangibles | 26,542 | 29,487 | |
| $3,249,716 | $2,745,106 | ||
| Liabilities and Shareholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities | 624,785 | 340,876 | |
| Bank loan | 50,000 | 30,000 | |
| Current portion of long-term debt | 22,204 | 27,790 | |
| Current portion of obligations under capital lease | 19,067 | 25,800 | |
| Current portion of future income taxes | 18,000 | 18,000 | |
| 734,056 | 442,466 | ||
| Long-term debt | 17,143 | 17,143 | |
| Obligations under capital lease | 30,304 | 30,304 | |
| Shareholders’ equity: | |||
| Share capital | 3,267,346 | 3,029,746 | |
| Contributed surplus | 26,188 | 26,188 | |
| Deficit | (825,321) | (800,741) | |
| 2,468,213 | 2,255,193 | ||
| $ 3,249,716 | $ 2,745,106 | ||
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Statements of Operations and Deficit
For the three months ended March 31, 2002 and 2001
(Unaudited – Prepared by Management)
| 2002 | 2001 | ||
| Revenues | $ 1,381,044 | $ 837,854 | |
| Cost of goods sold | 598,330 | 394,214 | |
| 782,714 | 443,640 | ||
| Operating expenses: | |||
| Wages and benefits | 323,834 | 212,482 | |
| Research and development | 155,894 | 98,312 | |
| Sales and marketing | 133,179 | 37,344 | |
| Office and administration | 121,488 | 97,904 | |
| Bank charges and interest | 12,981 | 2,380 | |
| Amortization of: | |||
| Capital assets | 22,315 | 18,729 | |
| Deferred development costs | 58,606 | 35,060 | |
| Patents and other intangible assets | 2,945 | 1,536 | |
| 831,242 | 503,747 | ||
| Operating loss for the period | (48,528) | (60,107) | |
| Other income: | |||
| Interest and other income | 23,948 | – | |
| Loss for the period | (24,580) | (60,107) | |
| Deficit, beginning of period | (800,741) | (124,242) | |
| Deficit, end of period | $ (825,321) | $ (184,349) | |
| Loss per share | $ (0.001) | $ (0.007) | |
| Weighted average number of shares outstanding | 20,305,599 | 8,433,222 | |
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2002 and 2001
(Unaudited – Prepared by Management)
| 2002 | 2001 | ||
| Cash provided by (used in): | |||
| Operations: | |||
| Loss for the period | $ (24,580) | $ (60,107) | |
| Amortization, an item not involving cash | 83,866 | 55,324 | |
| Changes in non-cash operating working capital: | |||
| Accounts receivable | (379,524) | (219,946) | |
| Taxes recoverable | 18,479 | – | |
| Inventories | (75,425) | 83,773 | |
| Prepaid expenses and deposits | (14,865) | (7,500) | |
| Advances receivable | 5,886 | – | |
| Accounts payable and accrued liabilities | 283,910 | (55,460) | |
| (102,253) | (203,916) | ||
| Investing: | |||
| Purchase of capital assets | (28,927) | (32,485) | |
| Financing: | |||
| Shares issued by way of private placement | 237,600 | – | |
| Bank loan | 20,000 | (70,000) | |
| Proceeds from issuance of long term debt (repaid) | (5,586) | 19,579 | |
| Principal payments of obligations under capital leases | (6,733) | (6,189) | |
| Advances received | – | 300,000 | |
| 245,281 | 243,390 | ||
| Increase in cash and cash equivalents | 114,101 | 6,989 | |
| Cash and cash equivalents, beginning of period | 1,060,817 | 185,634 | |
| Cash and cash equivalents, end of period | $ 1,174,918 | $ 192,623 | |
For further information, please contact:
Corporate Contacts:
Mr. Praveen Varshney, Director
Tel: (604)629-0264
Toll-Free: 1-866-629-0264
Media Contact:Mr. David Davies
Harbourwerks Communications
Tel: (250)382-4332
Investor Relations Contact:
Vanguard Shareholder Solutions
Tel: (604) 608-0824
Toll-Free: 1-800-567-6223