CPL Technologies Inc.

CPL Technologies Inc.

November 29, 2007 13:41 ET

CPL Announces its Results for the Third Quarter of 2007

Attention Business/Financial Editors

MONTREAL, QUEBEC--(Marketwire - Nov. 29, 2007) - CPL Technologies Inc. (TSX VENTURE:CCY), a leading provider of customer support application systems, today reported its third quarter results for the period ended september 30, 2007. All figures are in Canadian dollars unless otherwise indicated.

For the three months period ended September 30, 2007, the revenues of the Company were 505,628 $ compared to 579,600 $ during the same period in 2006, that is to say a fall of 12.7%. During the third quarter the Company modified its long-term vision in order to put its priority on the development of the Company by the means of acquisition. This new vision brought important changes in the Board of Directors and in the management of the company. This reorganization generated nonrecurring expenses of reorganization, of almost $213,000, which were entered during the last quarter. Moreover, this reorganization is also responsible for the deceleration in the sales during first half of the quarter, in September the 2007 sales took again the strength of the last years.

The revenues during the nine months period of 2007 raise to 1,75 M$, that is an increase of 3,2% compared to the same period during the same period in 2006. The net earnings for the nine months period ended on September 30, 2007 is 25,015 $ or 0.0019$ per share, compared to a net earnings of 161,371$ or 0.0124$ during the same period last year.

Financial highlights Quarter ended Nine months period ended
September September September September
(in Canadian dollars) 30, 2007 30, 2006 30, 2007 30, 2006

Revenues $505 629 $579 600 $1 756 477 $1 701 567
EBITDA $(67 865) $180 349 $226 732 $426 748
EBITDA margin (13.4)% 31.1 % 12.9 % 25.1 %
Net earnings (net loss) $(97 997) $81 143 $25 015 $161 371
Net earnings (net loss)
per share
- Basic $(0.0074) $0.0062 $0.0019 $0.0124
- Fully diluted $(0.0074) $0.0058 $0.0017 $0.0115

Total assets $2 403 530 $2 005 695
Long term debt
(including the
current portion) $269 458 $251 987

During the third quarter 2007, the Company modified its long-term vision in an important way, this changes caused major modifications within the Board of Directors and the management of the Company. The Company being at a stage of its growth requiring a vision more centered on strategic acquisitions. The Board of Directors is now made up with directors having greater experience in the integration of the undertaken acquired or amalgamated.

In September 2007 CPL took the steps for the acquisition of Net Marketing Solutions Inc., controlled by Mr. Roger Plourde by the means of the company Groupe Proselect Inc., and the acquisition of Groupe XiV inc. a company held by the Maloin Group. These companies' mainly works in the personalization and the deployment of marketing solution assisted by internet. These solutions allow our client to increase effectiveness of their marketing campaigns on Internet.

"Currently, the Company is in a process of development by the means of acquisition. Our good position, as much technological as financial, today allows us to attract solid strategic partner. We took the steps with an aim of concluding a transaction with the Company Netmarketing Solutions Inc. The Company gave an evaluation mandate to a specialized firm to establish the exchange price of the share with the aim of concretizing this acquisition. As soon as this evaluation is carrying out the Company will be able to inform the shareholders of the exact nature of the transaction." Specifies Mr Roger Plourde, president and chief executive officer of CPL.

Change on the Board of Directors.

In September 2007, within the framework of the reorganization, Mr. Jean-Claude Desaulniers and Mr. Jonathan Allaire resigned as directors of the Company. Those were replaced by Mr. Real Desjardins, independent director and by Mr. Stephan Larouche representing of the Cooperative des Travailleurs Actionnaires de CPL.


CPL Technologies is a recognized leader in request management solutions and the developer of the leading Helpdesk and Customer Service solution C2Enterprise. Since 1994, it has dedicated its efforts to delivering unique solutions to the issues facing the Customer Service industry. The Company delivers applications that are flexible, scalable and easy to use. Over the years, CPL has acquired a wide range of customers in a diverse array of industries. Its client portfolio includes renowned companies such as Ubisoft, CGI and Orange Mobile, among others. For more information please visit our website at www.cpl-inc.com

CPL Technologies' consolidated financial statements and the MD&A for the third quarter ended September 30th 2007, are available on SEDAR (www.sedar.com).


Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of CPL Technologies. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. The business of the Company and these forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ from expected results. A description of risk factors are discussed in the Company's Annual MD&A and Annual Information Form, filed with the securities regulatory authorities in Canada. The Company's business, financial condition or operating results could be materially adversely affected if any of these risks and uncertainties were to materialize. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • CPL Technologies Inc.
    Roger Plourde
    President and CEO
    1-866-978-1200 ext.1218
    450-978-6665 (FAX)