CPL Technologies Inc.

CPL Technologies Inc.

April 20, 2007 11:06 ET

CPL Delivers Once Again: Q4 Sales Up 66%; Annual Sales Up 33%

- Annual revenues soared by 33% over last year - Q4 sales up 66% - Recurring revenues tripled since F2004

MONTREAL, QUEBEC--(CCNMatthews - April 20, 2007) - CPL TECHNOLOGIES INC (TSX VENTURE:CCY), a leading provider of customer support application systems, today reported its fourth quarter and annual results which ended December 31, 2006. All dollars amounts are in Canadian dollars unless otherwise indicated.

Annual sales rose by 33%, breaking for the first time the $2M mark in C2Enterprise product sales. Revenues reached $2.3M, compared to $1.7M last year. Year-end profits were stifled by non-recurring items related to the abandonment of some non-core and unprofitable activities. CPL recorded a net profit of $122,039 or $0.0093 per share versus $86,025 or $0.0065 per share in fiscal 2005.

Fourth quarter sales soared by 66% to $623,976 from $376,416 over the same period last year. Pent-up demand in Quebec and other Canadian provinces brought sales to new heights. As sales ramped-up, so did CPL's need to recruit and train new personnel. In addition, CPL wrote-off an account receivable totaling $60,000. In addition to these additional costs, CPL's decision to discontinue some unprofitable operations resulted in write-downs which inevitably led to a net loss from operations of $39,332.

Financial Highlights
(ended December 31st)
Fourth Quarter Year End
2006 2005 2006 2005
Revenue 623,976 376,416 2,325,543 1,749,065
EBITDA 108,617 15,939 535,365 318,501
Net Earnings(Loss) (39,332) (10,441) 122,039 86,025
Net Earnings per Share
Basic (0.0030) (0.0008) 0.0093 0.0065
Fully Diluted (0.0027) (0.0007) 0.0086 0.0061
Total Assets 2,085,766 1,870,050 2,085,766 1,870,050
Long Term Liabilities 308,957 271,767 308,957 271,767
Basic number of
outstanding shares 13,053,848 13,207,264 13,053,848 13,053,848

"We can be proud of our achievements. Over the course of the year, we focused on sales and as a result, our sales soared by 33% over last year. In addition, sales increased for the fourth consecutive quarter. The majority of our sales growth came from outside of the province of Quebec. Quebec sales represented 87% of our total sales in fiscal 2005 and now represent only 76% of total sales. Most importantly, since fiscal 2004, our revenue mix has matured and currently includes 3 times as much recurring revenues, generated through CPL's service and maintenance contracts. Our professional services revenue stream has also soared by 100% within this same period. As for European sales, we made some headway with Craylog SA, but CPL decided it needed a more versatile partner. As a result, we terminated our partnership agreement with Craylog SA and rejuvenated our European expansion effort with PDR.BV in December 2006," said CPL Technologies President and CEO Jean-Claude Desaulniers.

Fiscal 2006 highlights

- Our principal product C2Enterprise continues to gain foreign market share;

- Four consecutive quarterly sales growth;

- Q4 sales up by more than 66%;

- EBITDA margins stable given the company's accelerated growth rate;

- New European partner in line for foreign expansion;

- Outside Quebec sales expansion off to a strong start; and

- Overall cash flow and balance sheet improvements.


"Looking ahead, we will intensify our foreign sales efforts by forging additional relationships with established players and also consider a potential merger or acquisition. We will work to maximize our capital deployment and focus our efforts on our award winning C2 platform. We will enhance our investor communication efforts in hopes of providing investors with a clear and concise portrait of our accomplishments," concluded Mr. Desaulniers.


On April 12th 2007, the board of directors granted to Mr. Jean-Claude Desaulniers, President and CEO, 250,000 stock options in accordance with his working agreement. An additional 140,000 stock options were granted to IntelHub Financial Corporation in accordance to their investor relations consulting agreement. The stock options were granted at an exercise price of $0.22 per share. The stock options must be exercised before April 12th, 2012. The stock options granted to IntelHub Financial Corporation can be exercised at a rate of 25% per quarter and expire 30 days after the termination of the consulting agreement or on April 12th, 2012 (the first date to occur). This granting is subject to the approval of the TSX Venture Exchange.


CPL Technologies is a recognized leader in request management solutions and the developer of the leading Helpdesk and Customer Service solution CEnterprise. 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. Through the years, CPL has acquired a wide range of customers within a diverse array of industries. The Company client portfolio includes well 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 2006 Annual Report and consolidated financial statements and the MD&A for the fourth quarter ended December 31(st), 2006 is 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.

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