CRS Electronics

CRS Electronics

November 29, 2010 08:00 ET

CRS Electronics Reports Third Quarter Financial Results

Sales of MR16 Lighting Units Up 197% Over 2009

WELLAND, ONTARIO--(Marketwire - Nov. 29, 2010) - CRS Electronics Inc. ("CRS"), (TSX VENTURE:LED), an inventor, developer and manufacturer of LED lighting, today reported financial results for the three and nine-month period ended September 30, 2010.

For the three months ended September 30, 2010, the Company reported sales of $704,400 and a net loss of $237,820 or $0.01 per share. For the nine months ended September 30, 2010, the Company reported a sales increase of 14% to $2.24 million and a net loss of $889,824 or $0.03 per share. This compares to sales of $1.96 million and a net loss of $637,841 for the same nine-month period last year. Working capital for the quarter was $1.28 million including $275,461 of cash.

"The sales pipeline for our MR16 product and our newly introduced PAR lamp series continues to grow. Demand for general LED lighting is at the early stage of market adoption. LED backlighting and signage applications have enjoyed rapid growth over the past few years with general commercial indoor and outdoor lighting demand poised to explode," said Scott Riesebosch, President of CRS Electronics. "We are continuing to expand our sales and marketing efforts and have added new agents and distributors in North America. We are producing samples from our suite of lighting products and installing them at diverse commercial applications. When customers experience our products and see the compelling payback they choose CRS with confidence."

During the quarter, CRS received a commitment from Best Buy to replace their halogen MR16s with CRS LED lights, the initial order of 3,150 lamps will be shipped in the fourth quarter of 2010. New driver technology was developed by the Company allowing the light to dim without flickering while maintaining superior performance. The technology is the first of its kind in the industry to include patent pending superior hardware and software components. The dimming functionality addresses a major buying decision for customers seeking a product that is as good or better than traditional lighting products.

The Company increased investment in equipment, development costs and patents in the quarter by 120% compared to the prior year. Investing in the future of LEDs plays an important role for CRS to compete with and differentiate from lower cost, poor quality imports. An emphasis on product modifications and cost reductions while maintaining best-in-class LEDs will assist to attract potential customers that are beginning to understand the importance of UL and Energy Star ratings. Incentive plans offered by governments and utilities in North America, Europe and Asia look favourably upon products that meet quality standards and reduce energy consumption.

New customers for the quarter include two of the premiere lighting distributors in the USA - Wiedenbach-Brown and Villa Lighting; Property Management companies CBRE and Oxford Properties; The University Health Network and Sloan Kettering Cancer Centers.

On July 5, 2010, CRS announced the successful completion of a private placement financing for gross proceeds of $1.1 million. The capital raised is being used for general working capital purposes.

The unaudited interim financial statements and related MD&A can be found on SEDAR at

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 and outdoor lighting such as LED replacement lamps, LED streetlights, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS is a well-established supplier to both the school bus industry and the LED contract manufacturing industry, providing a stable and growing revenue source. 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. Several of CRS's customers use CRS LED MR16 lamps to replace up to 50 watt halogen MR16s.

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 and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of markets for products, availability to develop and manufacture products, availability of sufficient financing, receipt of approvals, satisfaction of escrow requirements, satisfaction of closing conditions, obtaining debt financing for capital expenditures, and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. 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 additional closings; sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime 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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