CRS Electronics

CRS Electronics

May 03, 2011 08:00 ET

CRS Electronics Announces Fiscal 2010 Year End Financial Results

WELLAND, ONTARIO--(Marketwire - May 3, 2011) - CRS Electronics Inc. ("CRS"), (TSX VENTURE:LED)(OTCQX:LEDCF), an inventor, developer and manufacturer of LED lighting, today reported its financial results for the three and twelve month periods ended December 31, 2010.

Net sales for the three month period increased 58% to $905,900 compared to $572,100 for the same period in 2009. Sales for the year ended December 31, 2010 were $3.1 million, representing an increase of 24% from sales of $2.5 million in the same period last year. Net loss for the quarter was $530,400 or $0.02 per share versus a net loss for the comparative period 2009 of $360,900 or $0.01 per share. For the twelve month period ended December 31, 2010, the Company reported a net loss of $1.4 million or $0.05 per share versus a net loss of $998,651 or $0.05 per share for the same twelve-month period last year.

The Company realised total unit sales of 41,600 this year, an increase of 240% over the prior year. These results were supported by the success of the MR16 product line which sold 33,700 units this year, an increase of 360% over 2009 volumes. Revenue in the year from the LED MR16 sales increased 180.6% to $1.5 million from $518,700 in 2009.

"We are excited to realize that we had the strongest quarter of sales to date for our MR16 product in the fourth quarter of 2010 and believe this is only the beginning of our growth potential," said Scott Riesebosch, President of CRS Electronics Inc. "CRS recently announced a licensing agreement to sell products under the Energizer® brand name. This is a milestone event for CRS representing the move from one product in the commercial market to four products in both commercial and retail markets preparing us for significant growth in 2011."

New commercial customers for the year include Best Buy Co. Inc.; Sandals Resorts International; Harris Teeter; Intercontinental Hotel in San Francisco; Wellington Management; Quest Diagnostics Inc. head office in Madison, NJ; Kenair Apartments Ltd., in Toronto, ON; Property developers Wiedenbach-Brown and Villa Lighting; Property Management companies CBRE and Oxford Properties; The University Health Network and Sloan Kettering Cancer Centers.

In January 2010, the Federal Economic Development Agency for Southern Ontario granted an interest free loan of $825,000 from the Southern Ontario Development Program (SODP) to CRS. The funding was used to assist with the purchase of production and research equipment, patent filing costs and marketing for the Company.

During the year, the Company used proceeds from a private placement financing to complete the installation of new production equipment that increased annual plant capacity from approximately $5.0 million in revenue to $12.0 million in revenue.

Utility rebate programs represent a significant opportunity for CRS. In December 2010, the Company announced participation in two of these utility programs in the state of California. The rebate programs allow commercial customers to switch out their traditional MR16 lighting with the CRS MR16 product at no cost.

The audited annual financial statements and related MD&A can be found on SEDAR at

Notice of Annual Meeting

CRS Electronics' Annual Meeting of shareholders will be held on Tuesday, June 14, 2011, at St. Andrew's Club and Conference Centre, Inverness room, 150 King Street West, 27th Floor, Toronto, Ontario. The meeting is scheduled to begin at 4:30 pm.

About CRS

CRS Electronics Inc., an Energy Star and Lighting Facts partner, is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor lighting such as LED replacement lamps, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. CRS recently signed a license agreement with Eveready Battery Company Inc., a subsidiary of Energizer Holdings Inc., for CRS to manufacture a suite of LED lighting products under the brand name Energizer®. The initial LED suite of products includes the MR16, PAR 20, PAR 30 and PAR 38. Future products developed by CRS may also be considered by Energizer.

Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in CRS's public filings, CRS's future outlook and anticipated events or results and can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other CRS filings, and include the effect of capital market conditions and other factors on capital availability and the ability to complete the closing of the financing; sufficient working capital for development and operations, availability of a qualified work force, availability of manufacturing equipment and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other CRS filings at and other unforeseen events or circumstances. Other than as required by law, CRS does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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