CPL Technologies Inc.
TSX VENTURE : CCY

CPL Technologies Inc.

August 26, 2005 12:01 ET

CPL Technologies Announces its Results for its Second Quarter of 2005 and the Granting of Stock Options to a Director.

MONTREAL, QUEBEC--(CCNMatthews - Aug. 26, 2005) - CPL TECHNOLOGIES INC (TSX VENTURE:CCY) has announced today the results for its second quarter ended June 30th, 2005. Some delay in the development of a new update of its C2 Enterprise software solution explain the reduction in the revenue for the first semester.



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Consolidated operation 2nd quarter ended Six month period ended
results June 30th June 30th
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2005 2004 2005 2004
restated restated
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Revenue $400,223 $500,224 $890,272 $1,035,772
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EBITDA $66,367 $122,441 $194,360 $223,790
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Net earnings $4,946 $62,609 $53,041 $101,982
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Net earnings
per share
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undiluted $0.0004 $0.005 $0.004 $0.007
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Diluted $0.0003 $0.004 $0.004 $0.007
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Total assets $1,868,529 $1,914,993 $1,868,529 $1,914,993
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Long term
liabilities $326,923 $199,334 $326,923 $199,334
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Weighted average
number of common
shares
outstanding 13,323,064 13,763,850 13,323,064 13,763,850
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Revenue. The revenue of the Company during the six month period ended June 30th 2005 had decrease of 14% in comparison with the same period last year. The reduction is mainly attributed to the delays in the development of the new version of the software C2 Enterprise. This new version was planned to be ready by April 2005 and will be ready at the beginning of September 2005.

EBITDA. The EBITDA of the Company for the first semester ended June 30th 2005 was $194,360, it represent 22 percent of the revenue, the same percentage that in the same period last year.. So with a reduction in the revenue for the first semester combined to 8% reduction in their administrative expenses the Company maintained its EBITDA.

Net earnings. For the last 6 quarters the Company had realized consolidated net earnings. For the quarter ended on June 30th 2005 the net earnings was $ 4,946 compared to $62,609 for the same quarter in 2004 for a cumulative net earnings of $ 53,041 for the first semester of 2005 compared to $101,982 in 2004. This decrease is explained by a temporary slowdown in the revenue generated by C2 Enterprise due to the delay in the development of a new version more performing.

Granting of stock option to a director

On August 18th 2005, the board of directors, to underline the contribution of M. Jean-Guy Proulx in the development of the Erakis division, has granted him 100,000 stock options. Those option were granted at an exercise price of the market value of the common share plus 15%, or 0.18$ per stock option. After this granting, 1,060,000 stocks options are issued, on a possible total of 1,295,306 stocks options under the plan. Those stock options have to be exercised before August 18th, 2007.This granting is subject to the approval of the TSX Venture Exchange.

CPL Technologies is a recognized leader in request management solutions, for Customer Relationship Management (CRM) or internal support centers. CPL builds on extensive expertise and a thorough mastery of high-end development tools, focusing on integrating technologies that are constantly being refined to deliver superior customer care.

CPL Technologies consolidated financial statements and the MD&A for the first quarter ended march 31st 2005, are available on SEDAR (www.sedar.com).

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

Contact Information

  • CPL Technologies Inc.
    Jean Claude Desaulniers
    President, CEO and CFO
    (866) 978-1200
    (450) 978-6665 (FAX)
    jcdesaulniers@cpl-inc.com