CPL Technologies Inc.
TSX VENTURE : CCY

CPL Technologies Inc.

May 19, 2006 12:28 ET

CPL Technologies Announces its Results for First Quarter of 2006

MONTREAL, QUEBEC--(CCNMatthews - May 19, 2006) - CPL TECHNOLOGIES INC (TSX VENTURE:CCY) has announced today the results for its first quarter ended March 31, 2006.



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Consolidated operation result First quarter ended March 31st
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($CDN) 2006 2005
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Revenue 586,656 $ 490,049 $
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EBITDA 133,899 $ 127,993 $
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Net earnings 48,849 $ 48,095 $
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Net earnings per share:
Undiluted 0.0037 $ 0.0036 $
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Diluted 0.0034 $ 0.0033 $
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Total assets 2,009,725 $ 1,916,805 $
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Long term liabilities 290,103 $ 313,851 $
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Weighted average number of common shares
outstanding 13,053,848 13,323,064
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Explanation of corporate results

Revenue: The revenue of the Company during its first quarter ended March 31st 2006 had a 20% rise compared to the same quarter in 2005.The development of new markets in Canada and the United States started in December 2005 is mainly responsible for this increase.

Direct cost and gross earnings: The reduction in the activities of out-sourcing placement services is responsible for the reduction of over 60% in the direct cost. The need for more employees for the integration of the C2Enterprise software solution is mainly the reason for the increase in the direct salaries. The gross revenue passed from 89% in the first quarter of 2006 compare to 85% in the same period of 2005. The variation is due to the reduction in the out-sourcing placement services activities. Furthermore the Company is actually evaluating the possibility to cease this activity which represented less than 2,5% of the revenue in year 2005.

EBITDA: The EBITDA for the first quarter ended on March 31st 2006 was $133 899 representing 23% of the revenue compared to 26% for the first quarter of 2005. This reduction is mainly due to the investment made for the development of new European and Canadian market for the C2 Enterprise software solution.

Net earnings: Even if the revenue increase during the first quarter ended March 31st 2006 the increase in the market development cost as made that the consolidated net earnings was almost the same ($ 48 849) in 2006 compared to the same period in 2005 ($ 48 095).

CPL Technologies is a recognized leader in request management solutions, for Customer Relationship Management (CRM) or internal support centers. CPL builds on extensive expertise and a thorough mastery of high-end development tools, focusing on integrating technologies that are constantly being refined to deliver superior customer care.

CPL Technologies consolidated financial statements and the MD&A for the first quarter ended march 31st 2006, are available on SEDAR (www.sedar.com).

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • CPL Technologies Inc.
    Jean Claude Desaulniers
    President, CEO and CFO
    (866) 978-1200
    (450) 978-6665 (FAX)
    jcdesaulniers@cpl-inc.com