AZCAR Technologies Incorporated
TSX : AZZ

AZCAR Technologies Incorporated

August 04, 2005 17:02 ET

AZCAR Announces $16.2 Million in Revenue, and $380,000 in Net Income in Q2 2005

MARKHAM, ONTARIO--(CCNMatthews - Aug. 4, 2005) - Stephen F. Pumple, President & CEO of AZCAR (TSX:AZZ) today announced AZCAR's second quarter revenue was $16.2 million, or 35% above Q2 2004. The net income of $380,000, or 2.5 cents per share, reflects the Company's strong performance in the North American market.

The business climate for AZCAR's services in 2005 continues to be very positive and gives every indication of continuing through 2006. The changes made in Q2 by the new COO to the management process, infrastructure and control system are already generating improvements to the internal processes and are reflected in improved operating margins and the bottom line in our major market, the USA. However, YTD revenue and related earnings decreased outside the USA due to lost business in Q1 & Q2.

The continued discussions in the US Congress regarding the conversion from analog to all digital television transmission appears to be leading to a hard transition in 2009. These technological changes are good for AZCAR's business. The Company is also seeing a resurgence of deferred projects, a high level of repeat business, and increasing opportunities worldwide. The regulatory and market pressures to accelerate the deployment of High Definition television (HDTV) along with advances in Internet Protocol (IP), and streaming technologies represent both new and repeat business opportunities for AZCAR.



Consolidated Statements of Operations

Periods 2005 2004 2005 2004
ending
June 30 Three months ended Variance Six months ended Variance
---------------------------------------------------------------------
Can$000's Unaudited Unaudited Unaudited Unaudited

Revenues 16,157 11,958 4,199 32,965 21,979 10,986
Cost of
goods sold 13,457 9,633 (3,824) 28,408 18,080 (10,328)
-----------------------------------------------------
Gross margin 2,700 2,325 375 4,557 3,899 658
Gross margin % 16.7% 19.4% -2.7% 13.8% 17.7% -3.9%
-----------------------------------------------------
Operating
expenses 2,120 1,453 (667) 3,840 2,975 (865)
-----------------------------------------------------
Income before
taxes and
minority
interest 580 872 (292) 717 924 (207)
-----------------------------------------------------
Net Income 380 723 (343) 502 686 (184)
-----------------------------------------------------

Earnings per
share - Basic
(cents) 2.5 4.7 (2.2) 3.3 4.5 (1.2)
-----------------------------------------------------


AZCAR is an independent technology integration company providing value-driven solutions, consulting, engineering, systems design, integration, project management, maintenance and the supply of related products to organizations in the broadcasting, communications and training industries. The stock trades on the Toronto Stock Exchange under the symbol: AZZ.

This review contains Management's discussion of AZCAR's operational results and financial condition, and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2004, the unaudited consolidated financial statements for the period ended June 30, 2005, and each of the related "Management's Discussion and Analysis" (MD&A) documents.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • AZCAR Technologies Incorporated
    Jim O'Neill
    Chief Financial Officer
    (905) 470-2545, ext. 244
    email: jim.oneill@azcar.com