AZCAR Technologies Incorporated
TSX : AZZ

AZCAR Technologies Incorporated

May 13, 2008 19:05 ET

AZCAR Announces Results for the First Quarter of 2008

MARKHAM, ONTARIO--(Marketwire - May 13, 2008) - Stephen F. Pumple, Chairman and CEO of AZCAR Technologies Incorporated (TSX:AZZ) today announced first quarter revenue was $16.69 million with a net income of $0.3 million or $.02 cents/share. On a comparative basis the revenue was the same as the first quarter of 2007, however the mix of services to equipment in 2008 was weighted towards services which are more profitable. The gross margin for the first quarter was $2.85 million or 17.1% of revenue versus $2.87 million, or 16.9% of revenue for Q1 2007.



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2008 2007
Three Months Ended March 31
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(Cdn $000) (unaudited) (unaudited)

Revenues 16,691 16,994
Cost of goods sold 13,841 14,127
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Gross margin 2,850 2,867
Gross margin % 17.1% 16.9%
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Operating expenses 2,520 2,590
Interest expense (income) 64 8
Foreign exchange loss (gain) (149) 6
Stock-based compensation 15 10
Amortization 96 95
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2,546 2,709
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Income (loss) before income taxes and
Minority Interest 304 158
% of revenues 1.8% 0.9%
Income tax expense (recovery) - (31)
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Income before Minority Interest 304 189
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Minority Interest - 12
Net Income 304 177
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Earnings per share $0.02 $0.01
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Cash Dividends - -
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Operating expenses decreased slightly in the first quarter compared to the same quarter last year.

The Company generated a 2008 first quarter profit of $304,000 or 1.8% of revenue, compared to a profit in 2007 first quarter of $177,000. Overall, the increase in net income of $127,000 compared to the first quarter of last year is due to a foreign exchange gain of $149,000 partially offset by an increase in interest expense of $56,000 resulting from higher borrowings.

The Company has non-capital loss carry forwards that were used to reduce the Canadian source income for income tax purposes.

Management continues to focus on operating efficiencies, improvements in workflow, process and internal controls, all of which will generate improved margins and financial performance of the Company during 2008 and beyond. In 2008 the Company plans to implement a new enterprise software solution that will improve operating efficiencies, strengthen compliance reporting and provide a seamless integrated business information systems environment.

AZCAR is an independent technology integration company providing the broadcast and communications industries with value-driven solutions, consulting, engineering, systems design, integration, project management and the supply of related materials and equipment. The stock trades on the Toronto Stock Exchange under the symbol: AZZ.

Except for historical information, this news release may contain certain "forward looking statements". Forward looking statements are statements that are not historical facts and are subject to a variety of risks, uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections.

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

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