SOURCE: New Century Companies, Inc.

August 15, 2007 08:00 ET

New Century Companies, Inc. Announces Second Quarter 2007 Financial Results and Provides 2007 Financial Guidance

Six Month Revenues Increased 45% to Approximately $5.8 Million; Gross Profit for the First Six Months Increased 58% to $1.9 Million; 2007 Year End Revenues Expected to Exceed $11.6 Million, up 40%

SANTA FE SPRINGS, CA--(Marketwire - August 15, 2007) - New Century Companies, Inc. (OTCBB: NCNC), a leading manufacturer and re-manufacturer of machine tools, today announced financial results for the second quarter ending June 30, 2007.

Second Quarter 2007 Financial Results

New Century posted revenue of approximately $2.6 million for the quarter ended June 30, 2007, an increase of 13% compared to the approximately $2.3 million for the comparable period of 2006. New Century ended the quarter with approximately $5.3 million of new orders year-to-date, an increase of 60% over orders booked for the same period in 2006. The number of orders in work process remains strong, a trend management believes will continue throughout the year. Traditionally, the second half of the year has generally been the higher revenue producing quarters for New Century, and this year should be no exception. There is a seasonal slow down during the summer months, which transitions to a ramp up as the year closes out. The current increase in backlog and work order flow should lessen the seasonality in quarterly revenues in the future.

Gross profit for the quarter was approximately $711,002, or 27% of revenues, compared to $806,721, or 35% of revenues for the same period the prior year. Operating income for the quarter was approximately $192,616 compared to operating income of $360,379 for the same period in the prior year. The decrease in gross profit is due to the change in product mix for the types of machines in process during the quarter, while the decrease in operating income can be attributed to an increase in consulting related expenses and salary increases. The Company believes that the best measure for gross profit should be evaluated on a yearly basis due to the changes in product mix and their accompanying margins on a quarterly basis.

New Century posted a Net loss for the quarter ended June 30, 2007 of approximately ($497,578) or ($0.04) loss per basic share, compared to net income of approximately $304,393 or $0.02 per diluted share for the same period last year. The second quarter of 2007 had approximately $860,000 in non-cash related expenses related to consulting fees and interest expenses compared to approximately $700,000 of similar expenses for the same period in 2006. The Company believes that approximately $350,000 of these expenses will not be replicated during the third quarter of 2007.

Shareholders Equity for the Company improved to $1.54 million or an increase of $1.2 million compared with approximately $335,000 for the same period for the prior year.

Six Months Financial Results 2007

The Company posted revenues of approximately $5.79 million for the six month period ended June 30, 2007, an increase of 45% compared to the approximately $3.99 million for the same six month period of 2006. The increase is the result of higher sales volumes coupled with higher margins and selling prices of New Century machines as market conditions continue to improve.

Gross profit for the six months was approximately $1.9 million, or 33% of revenues, compared to $1.2 million, or 30% of revenues for the same period the prior year. Operating income for the six months was approximately $658,582 compared to operating income of $308,589 for the same period in the prior year. The increase in operating income is due to the increase in revenues and gross margins.

New Century posted a Net loss for the six months ended June 30, 2007 of approximately ($508,541) or ($0.04) loss per basic share, compared to a net loss of approximately ($620,112) or ($0.06) per diluted share for the same period last year. The first six months of 2007 had approximately $1.6 million in non-cash related expenses related to consulting fees and interest expenses compared to approximately $1 million of similar expenses for the same period in 2006.

2007 Year End Financial Guidance

The company expects to realize yearend 2007 revenues of approximately $11.6 million, a 40% increase when compared to year end 2006 revenues of approximately $8.3 million. The Company expects the newly formed joint venture with WK Machine to contribute additional revenues by year end 2007. The first machine tool is expected to be delivered by September 1, at which time the JV can begin booking orders and manufacturing jet engine parts per the previously announced agreement.

David Duquette, President and CEO of New Century, commented, "The first half of 2007 has been exciting and rewarding for our entire team. Currently, we are operating at 70% capacity with our strong backlog reaching record levels. We continue to see a generous increase in bookings across all sectors of the industries we service. While we are pleased with our financial results we will continue to increase profit margins as we implement pricing increases for our high end products. The demand for CNC products in the market continues to strengthen, while inventory remains tight. This presents New Century with the opportunity to further capitalize on our ability to timely deliver our products with optimum gross margins to benefit the customers and New Century."

If you are interested in being added to New Century's investor e-mail lists, please contact Mark McPartland of Alliance Advisors at (910) 221-1827 or via email at markmcp@allianceadvisors.net

About New Century Co.

New Century Companies, Inc. is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers (VTCs). It specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. New Century's production facility is in Santa Fe Springs, CA.

Visit New Century's Web site at www.newcenturyinc.com.

Safe Harbor

Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

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