SOURCE: Northstar Electronics

November 20, 2008 09:25 ET

Northstar Electronics, Inc. (NEIK) Announces Its 2008 3rd Quarter Results

VANCOUVER, BC--(Marketwire - November 20, 2008) - Northstar Electronics, Inc. (OTCBB: NEIK), specializing in advanced sonar technology for Homeland Security and Defense, and Aeronautics Contract Manufacturing, announces its 2008 3rd Quarter results.

Revenues for the three months ended September 30, 2008 were USD $676,149 compared to USD $688,228 in the same period of last year. Revenue consists of product and contract sales and government assistance. The Company incurred a loss for the quarter of USD $332,604 or USD $0.01 per share compared to a loss of USD $45,605 or USD $0.00 per share for the same period of 2007.

Revenues for the nine months ended September 30, 2008 were USD $1,670,614 compared to revenues of USD $1,310,962 for the same period a year earlier. The Company incurred a net loss for the nine months of USD $1,000,807 or USD $0.03 per share compared to a loss of USD $454,102 or USD $0.02 recorded for the same period of 2007.

In the 3rd Quarter, there was increased parts production for the work the Company is doing on Lockheed Martin Aeronautics' P-3 Maritime Surveillance airplane wing retrofit program. First production certification, involving high expenses, was the main contributor to the high quarterly loss. These high certification costs greatly decrease with on-going production work and should be significantly lower in the 4th Quarter.

During the 3rd Quarter, the Company received over $6.1M worth of new work orders on the Lockheed Martin P-3 program. Additional P-3 contract work is anticipated to be awarded by the end of 2009.

Project X, the innovative sonar system development contract the Company has with Lockheed Martin, reached the configuration stage for final development and testing during the quarter. Also, in the quarter, sales in the Company's commercial product line were lower than in the same period in 2007 as high fuel costs hampered order commitments from the fishing industry. With fuel costs decreasing, sales are expected to rise going forward.

Northstar's CEO, Wilson Russell, said, "In the 4th Quarter of 2008 and the 1st Quarter of 2009, we expect to see a strong increase in aerospace contract revenues based on the high backlog of work in place. We also expect much improved bottom lines as expenses go down with better economies of scale and greatly reduced certification costs. We are working on raising capital through an offering designed for minimal dilution to our shareholders. The main usage of funds will be to increase the Company's aerospace production capacity in order to take on larger, expected contracts."

For further information (www.northstarelectronics.com) contact Rich Kaiser Investor Relations, YES INTERNATIONAL, yes@yesinternational.com, #800-631-8127 and/or Ms. Beverly Jedynak, Media Relations, Martin Janis & Co, Inc., b.jedynak-janispr@att.net, (312) 943-1000 Ext. 12.

Safe Harbor: Included in this release are forward-looking statements within Section 27A of the Securities Act of 1993, as amended, and Section 21E, Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. Although the Company believes such expectations reflected are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove correct. The Company's actual results could differ materially from those anticipated.

Contact Information

  • Contact
    Rich Kaiser
    Investor Relations
    YES INTERNATIONAL
    Email Contact
    #800-631-8127

    Ms. Beverly Jedynak
    Media Relations
    Martin Janis & Co, Inc.
    Email Contact
    (312) 943-1000 Ext. 12.