Vancouver, BC, Canada – (October 21, 2004) – Carmanah Technologies Corporation (TSX VE: CMH; Berlin and Frankfurt Stock Exchanges: QCX), is pleased to announce its second quarter results for the three months ended June 30, 2002. Highlights for the quarter are as follows:
- Revenue up 86% over Q2 2001 to $1,513,733
- Profit of $31,140
- Revenue growth (86%) outpaced expenditures (44%)
- Unit sales were up 72% to 10,783 for the first half of 2002
- Gross profit reaches a record 58% as direct sales increase
- Investments into developing new markets continues
SUMMARY OF RESULTS FOR 2002
3 Months Ended June 30
Carmanah recorded a record $1,513,733 in revenues. This was an 86% increase of $701,587 over the same period in 2001.
Direct cost of goods totaled $649,836, as compared to $349,949 for the three months ended June 30, 2001. Total operational expenses were $878,155, a 44% increase over the $611,267 in the same period in 2001.
Gross profit as a percentage of sales reached a record 58%. Net income was $31,140 as compared to a net loss of $213,759 for the same period in 2001.
6 Months Ended June 30
Carmanah recorded a record $2,894,777 in revenues. This was an increase of 78% over the same period in 2001. Revenue growth was achieved through (i) the continued growth of marine sales in existing product lines; (ii) expansion into the railway and mining markets with existing products; and (iii) expansion into the transportation and transit markets with entirely new products. Unit sales increased from 6,818 units sold and delivered for the first half of 2001 to 10,783 for the first half of 2002.
Direct cost of goods totaled $1,248,166 as compared to $739,853 for the six months ended June 30, 2001. Gross profit as a percentage of sales was 57% as compared to 55% during the same period in 2001. This increase 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 were $1,685,710 as compared to $1,059,422 for the same period in 2001. As a percentage of sales, the operating expenses are down to 59%, as compared to 65% for the same period in 2001. This increase is attributed to the increased staff and administrative expenses necessary 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 income was $6,560 as compared to a net loss of $215,762 for the same period in 2001. The overall increase is a result of an increase in sales.
Cash balance as at June 30, 2002 was $820,084, as compared to $1,060,817 as at December 31, 2001. The decrease was primarily attributable to an increase in inventory levels and a decrease in current liabilities.
About Carmanah Technologies Inc.
Carmanah designs, manufactures and supplies patented, proprietary solar-powered LED lighting solutions to the marine, transit, roadway and railway markets. The company has distributors in over 80 countries and now has more than 45,000 units installed worldwide. The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol “CMH” and on the Berlin and Frankfurt Stock Exchanges under the symbol “QCX”. For further information, please visit www.carmanah.com.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
Praveen Varshney, Director
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
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
June 30, 2002 and December 31, 2001
(Unaudited – Prepared by Management)
| June 30, | December 31, | ||
| 2002 | 2001 | ||
| (unaudited) | (audited) | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 820,084 | $ 1,060,817 | |
| Accounts receivable | 643,531 | 358,958 | |
| Taxes recoverable | 9,926 | 23,888 | |
| Prepaid expenses and deposits | 35,609 | 26,777 | |
| Inventories | 833,308 | 587,439 | |
| Current portion of advances receivable |
36,639 | 49,472 | |
| 2,379,097 | 2,107,351 | ||
| Advances receivable | 111,500 | 111,500 | |
| Capital assets | 304,334 | 279,873 | |
| Deferred development costs | 105,645 | 216,895 | |
| Patents and other intangibles | 35,582 | 29,487 | |
| $ 2,936,158 | $2,745,106 | ||
| Liabilities and Shareholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities |
333,027 | 340,876 | |
| Bank loan | 30,000 | 30,000 | |
| Current portion of long-term debt |
6,146 | 27,790 | |
| Current portion of obligations under capital lease | 12,855 | 25,800 | |
| Current portion of future income taxes |
18,000 | 18,000 | |
| 400,028 | 442,466 | ||
| Long-term debt | 6,473 | 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 | (794,181) | (800,741) | |
| 2,499,353 | 2,255,193 | ||
| $ 2,936,158 | $ 2,745,106 | ||
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Statements of Operations and Deficit
For the six months ended June 30, 2002 and 2001
(Unaudited – Prepared by Management)
| 2002 | 2001 | ||
| Revenues | $ 2,894,777 | $ 1,628,983 | |
| Cost of goods sold | 1,248,166 | 739,853 | |
| Gross Margin | 1,646,611 | 889,130 | |
| Operating expenses: | |||
| Amortization of: | |||
| Capital assets | 48,714 | 41,507 | |
| Deferred development costs | 111,249 | 70,119 | |
| Patents and other intangible assets |
4,155 | 3,700 | |
| Bank charges and interest | 21,060 | 15,583 | |
| Office and administration | 262,185 | 180,924 | |
| Research and development | 319,693 | 125,287 | |
| Sales and marketing | 262,682 | 112,486 | |
| Wages and benefits | 655,972 | 509,816 | |
| 1,685,710 | 1,059,422 | ||
| Operating loss for the period | (39,099) | (170,292) | |
| Other income: | |||
| Interest and other income | 45,659 | 43,015 | |
| Reverse takeover costs | — | (88,485) | |
| 45,659 | (45,470) | ||
| Income (loss) for the period | 6,560 | (215,762) | |
| Deficit, beginning of period | (800,741) | (124,242) | |
| Deficit, end of period | $ (794,181) | $ (340,005) | |
| Earnings (loss) per share | $ 0.0003 | $ (0.0343) | |
| Weighted average number of shares outstanding | 20,480,113 | 6,285,479 | |
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Cash Flows
For the six months ended June 30, 2002 and 2001
(Unaudited – Prepared by Management)
| 2002 | 2001 | ||
| Cash provided by (used in): | |||
| Operations: | |||
| Income (loss) for the period | $ 6,560 | $ (215,763) | |
| Amortization, an item not involving cash |
164,118 | 115,326 | |
| Changes in non-cash operating working capital: |
|||
| Accounts receivable | (284,573) | (141,344) | |
| Taxes recoverable | 13,962 | (89,909) | |
| Inventories | (245,869) | (154,168) | |
| Prepaid expenses and deposits |
(8,832) | (1,782) | |
| Advances receivable | 12,833 | – | |
| Accounts payable and accrued liabilities |
(7,848) | 114,665 | |
| (349,649) | (372,975) | ||
| Investing: | |||
| Cash received on the reverse takeover of Carmanah Technologies Inc. |
— | 1,768,014 | |
| Capital asset additions | (83,423) | (94,197) | |
| Patents and other intangibles | — | (10,032) | |
| (83,423) | 1,663,785 | ||
| Financing: | |||
| Shares issued by way of private placement |
237,600 | – | |
| Bank loan | — | (30,000) | |
| Repayment of long term debt | (32,316) | (27,431) | |
| Obligations under capital leases |
(12,945) | 69,212 | |
| 192,339 | 11,781 | ||
| Increase (decrease) in cash and cash equivalents | (240,733) | 1,302,591 | |
| Cash and cash equivalents, beginning of period | 1,060,817 | 185,634 | |
| Cash and cash equivalents, end of period | $ 820,084 | $ 1,488,225 | |