SOURCE: Northstar Electronics, Inc.

August 14, 2008 19:30 ET

Northstar Electronics, Inc. (NEIK) Announces Its 2008 Second Quarter Results

VANCOUVER, BC--(Marketwire - August 14, 2008) - Northstar Electronics, Inc. (OTCBB: NEIK), specializing in advanced sonar technology for Homeland Security and defense, announces its 2008 second quarter results.

Revenues for the three months ended June 30, 2008 were USD $562,031, compared to USD $427,002 in the same period last year. Revenue consists of product and contract sales and government assistance. The Company incurred a loss for the quarter of USD $321,114 or USD $0.01 per share compared to a loss of USD $201,043 or USD $0.01 per share for the same period of 2007.

Revenues for the six months ended June 30, 2008 were USD $994,465 compared to revenues of USD $622,734 for the same period a year earlier. The Company incurred a net loss for the six months of USD $668,203 or USD $0.02 per share compared to a loss of USD $408,497 or USD $0.02 per share recorded for the same period of 2007.

During the quarter, the Company continued work on the P3 aircraft outer Wing Box refurbishment contract for Lockheed Martin Aeronautics. The Company neared completion work on the submarine console contract for Lockheed Martin MS2 and commenced production of the first prototype unit, wide-band sonar projector on the Project X contract for Lockheed Martin Canada. Expansions of the P3 and sonar contracts are anticipated following important reviews in the next operating quarter.

Expenses increased mainly due to increased manpower and sub-contractor work on First Article Inspections (FIA) on the P-3 contract. These cost anomalies should reduce to normal levels once repeat part production commences on the following set of aircraft. Revenues of the P-3 contract are expected to continue rising, commensurate with future increased production work.

Northstar Electronics, Inc. through its subsidiaries, Northstar Technical, Inc. and Northstar Network Ltd., provides electronics products to the marine industry and provides engineering, prototyping and production services to the defense and Homeland Security industries. www.northstarelectronics.com

For Further information contact 604-685-0364, YES INTERNATIONAL -- 800-631-8127, and/or Martin Janis &Co. -- 312-943-1000.

Safe Harbor: Included in this release are forward-looking statements within the meaning of the Securities Act - 1993, Section 27A and Securities Exchange Act - 1934, Section 21E; subject to safe harbor created by sections. Company believes expectations reflected in such forward-looking statements are reasonable, but no assurance that such will prove correct; actual results could differ materially.

Contact Information

  • CONTACT:
    YES INTERNATIONAL
    800-631-8127