CPL Technologies Inc.
TSX VENTURE : CCY

CPL Technologies Inc.

November 15, 2006 10:05 ET

CPL Technologies Continues to Expand Sales-Q3 up 20%

- Q3 Sales up 20% Over Last Year - EBITDA Margins Increase Quarter Over Quarter to Reach 31% - Nine Month Net Profits Increase by 67%

MONTREAL, QUEBEC--(CCNMatthews - Nov. 15, 2006) - CPL TECHNOLOGIES INC. (TSX VENTURE:CCY)

Attention Business/Financial Editors

CPL TECHNOLOGIES INC., a leading provider of customer support application systems, today reported its third quarter results which ended September 30, 2006. All sales are in Canadian dollars unless otherwise indicated.

Third quarter sales rose by 20% to $579,600 from $482,377 over the third quarter last year. The Company generated a net profit of $81,142 or $0.0062 per share, compared to $43,425 or $0.0033 per share for the same quarter last year.

Sales for the nine month period were $1.7 million, a 24% increase over the same period last year. Over the nine month period, the Company considerably improved profitability and earned a net profit of $161,371 or $0.0124 per share, compared to a net profit of $96,465 or $0.0073 per share for the same period last year.



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Financial Highlights
(in Canadian dollars, ended September 30th)
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Third Quarter Nine months
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2006 2005 2006 2005
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Revenues $579,600 $482,377 $1,701,567 $1 372,649
EBITDA $180,348 $108,202 $426,748 $302,561
Net earnings $81,142 $43,425 $161,371 $96,465
Net earnings
per share
Basic $0.0062 $0.0033 $0.0124 $0.0073
Fully diluted $0.0058 $0.0029 $0.0115 $0.0066
Total assets $2,005,695 $1,878,292 $2,005,695 $1,878,292
Long Term
Liabilities $264,996 $312,257 $264,966 $312,257
Weighted average
number of common
shares outstanding 13,053,848 13,132,857 13,053,848 13,258,965
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"Sales increased for the third consecutive quarter this year. As we move closer to our fiscal year-end we expect sales to remain healthy. Our expansion efforts outside of Quebec continue to bear fruit, but as of yet only represent a very small portion of total revenues. As we continue to create partnerships and expand our sales efforts, we expect outside Quebec sales to become more significant," said CPL Technologies President and CEO Jean Claude Desaulniers.

THIRD QUARTER HIGHLIGHTS

- Nine month period sales were up 24% compared to the same period last year as a result of expanded sales efforts outside of Quebec.

- EBITDA totaled $426,748 for the nine month period this year compared to $302,561 for the same period last year. CPL's EBITDA margins improved by 3% to 25%.

- Net income margins improved once again to 9.5% for the nine month period, compared to 7% for the same period last year.

OUTLOOK

"As the year comes to a close, we expect CPL will demonstrate its ability to increase sales and overall profitability. Looking forward, CPL will continue to focus its efforts on duplicating the success it enjoys in Quebec in other provinces and countries. In an effort to accelerate our foreign market penetration, we will actively seek out regional strategic partners over the coming months," concluded Mr. Desaulniers.

GRANTING OF STOCK OPTIONS

On November 7th, 2006, the board of directors granted to each director and officer 15,000 stock options. These options were granted at an exercise price equal to the market value of the common shares plus a premium of 15%, or $0.14 per stock option. The stock options expire on November 6th, 2011.This granting is subject to the approval of the TSX Venture Exchange.

ABOUT CPL TECHNOLOGIES

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 consolidated financial statements and the MD&A for the third quarter ended September 30th 2006, are available on SEDAR (www.sedar.com).

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

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
    Jean-Claude Desaulniers
    President and CEO
    866-978-1200 ext.1210
    450-978-6665 (FAX)
    jcdesaulniers@cpl-inc.com
    or
    Investor Relations
    IntelHub Financial Corporation
    Moses Bendayan, CFA
    514-499-8482 ext. 201
    moses@intelhub.com