AZCAR Technologies Incorporated
TSX : AZZ

AZCAR Technologies Incorporated

November 09, 2007 16:59 ET

AZCAR Announces Results for the Third Quarter of 2007

MARKHAM, ONTARIO--(Marketwire - Nov. 9, 2007) - Stephen F. Pumple, Chairman & CEO of AZCAR (TSX:AZZ), announced third quarter net income of C$0.3 million on revenues of C$18.2 million, compared to a net loss of C$0.2 million on revenues of C$15.6 million in Q3 2006. The increase in revenue from Q3 2006 was due to higher AZCAR broadcast integration project service revenue plus specialized training services revenue. The increase in net income from Q3 2006 is due to higher revenue s, reduced operating expenses and an income tax recovery partially offset by reduced gross margin percent on service revenue and integration project equipment revenue, and a higher foreign exchange loss resulting from the continued strengthening of the Canadian dollar in Q3.



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2007 2006 2007 2006
Three Months Ended Nine Months Ended
September 30 September 30
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(unaudited) (unaudited) (unaudited) (unaudited)

Revenues 18,245 15,634 50,890 47,892
Cost of goods sold 15,776 13,418 43,526 39,744
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Gross margin 2,469 2,216 7,364 8,148
Gross margin % 13.5% 14.2% 14.5% 17.0%
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Operating expenses 2,052 2,384 7,642 7,228
Interest expense 63 28 87 16
Foreign exchange loss
(gain) 349 (8) 592 191
Stock-based compensation 22 11 46 28
Amortization 93 80 279 226
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2,579 2,495 8,646 7,689
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Income (loss) before
income taxes and
minority interest (110) (279) (1,282) 459
% of revenues (0.6%) 1.8% (2.5%) 1.0%
Income tax expense
(recovery) (397) (88) (816) 174
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Income (loss) before
minority interest 287 (191) (466) 285
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Minority interest 4 (7) (18) 1
Net income (loss) 283 (184) (448) 284
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Earnings (loss) per
share 1.8 cents (1.2 cents) (2.9 cents) 1.8 cents
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Cash dividends - - - -
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Operating expenses decreased by $0.3 million in the third quarter compared to the same quarter last year. This decrease is largely due to higher project labour utilization rates for services employees whose cost is allocated from operations to cost of revenue. In addition, in Q3 2007, the Company recorded a partial recovery of $0.3 million of the employee misappropriation loss recorded in Q2 2007.

AZCAR is an independent technology integration company providing high definition digital media technology solutions for the broadcast and telecommunications industries, broadcast ministries, higher education institutions, and multi-purpose sports and entertainment venues. AZCAR provides consulting, engineering, systems design, integration, project management and the supply of related materials, equipment and software. The Company's business operates through the parent company and its subsidiaries. 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 and 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.

This review contains Management's discussion of the 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, 2006, and the related "Management's Discussion and Analysis" (MD&A).

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

Contact Information

  • AZCAR
    Roger Miller
    Chief Financial Officer
    (905) 470-2545 ext. 244
    (905) 470-2943 (FAX)
    Email: roger.miller@azcar.com