Manaris Corporation
OTC Bulletin Board : MANS
FRANKFURT : WKN:255471

Manaris Corporation

May 24, 2006 07:00 ET

Manaris Corporation Reports Solid Third Quarter Revenue Growth

MONTREAL, QUEBEC--(CCNMatthews - May 24, 2006) -

Consolidated revenue up 30% sequentially and 60% year-over-year

Manaris Corporation (OTCBB:MANS)(FRANKFURT WKN:A0F5LD), announced on May 19th the financial results for the Company's fiscal third quarter ending March 31, 2006. Revenues for the quarter were $2.9 million, which represents an increase of 30% as compared to the second quarter ($2.2 million) and an increase of 60% as compared to the third quarter of the Company's 2005 fiscal year ($1.8 million). This growth in revenue is largely due to an increase in sales within the Company's subsidiary, Avensys, with continued growth in fiber optics components manufacturing and a seasonal increase of environmental solutions sales.

Manaris' gross margins for the third quarter improved to 32% of revenues, as compared to 29% during the third quarter of 2005. This 3% improvement in gross margin is mainly attributable to the increased volumes of Avensys, and the elimination of lower-margin service revenues from the discontinued operations. The net loss for the third quarter amounted to $6.4 million, as compared to $2.2 million in the second quarter and $1.7 million in the third quarter of the 2005 fiscal year. The larger loss is primarily attributable to a goodwill impairment charge of $4.3 million and the continued amortization of our senior secured debenture in the amount of $674,427. As for the balance sheet, Manaris ended the third quarter with cash and cash equivalents, and deposits in trust of approximately $2.3 million and total debt of approximately $3.1 million, as compared to cash and cash equivalents of $362,000 and total debt of $4.6 million as of Dec. 31, 2005.

John Fraser, President and CEO of Manaris Corporation, stated, "After achieving several important milestones in the past quarter, we believe we have laid the groundwork to enhance shareholder value."

Highlights of the third quarter include:

- Finalizing the sale of the Company's Chartrand Laframboise Inc. for net cash proceeds of $2.6 million;

- The acquisition of ITF Optical's manufacturing assets; and

- Launching C-Chip's GSM-based C-Chip Credit 200G credit management product and service.

Mr. Fraser continues, "These transactions are the result of our heightened focus on growth and fiscal discipline. In this regard, we are excited about the prospects for Avensys, which, as a result of the ITF acquisition, is planning to reduce its operating costs and expand its customer base. We are also pleased to have introduced our new GSM based C-Chip Credit 200G, the credit management product and service."

"Manaris is currently focused on achieving a smooth integration of the ITF Optical acquisition and increasing production of the C-Chip Credit 200G, while maintaining stability as we develop and grow our businesses." Fraser added.

About Manaris Corporation

Manaris Corporation, through its two wholly-owned subsidiaries, offers risk mitigation solutions. C-Chip Technologies (North America) specializes in the high-tech sector of the security industry, offering technology that allows business users to efficiently access, control, manage and monitor remote assets at low cost. Avensys enables businesses to monitor different types of environments, including air, soil and water, as well as buildings and materials. Avensys also produces fiber optic components and sensors. For more information please visit www.manariscorp.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Contact Information

  • Manaris Corporation
    John Fraser
    President and CEO
    (514) 337-2447
    or
    Zenergy Communications
    Linda Farha
    (514) 273-4034
    linda@zenergycom.com