August 29, 2007 19:48 ET

Option-NFA Inc. Reports Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Option-NFA Inc. (TSX VENTURE:OPN) announces results for the period ending June 30, 2007.

For the second quarter net earnings were down versus the second quarter of 2006 and year to date losses were higher than the previous years results. Total revenues were decreased when compared to Q2 2006 and year to date 2006. The decrease in revenue was due in part to diminished bookings as was previously mentioned in our Q1 results, and our inability to produce and ship product early. We anticipate delivering the majority of our customers on time in Q3 and Q4.

Total sales for the quarter were down in 2007 to $2,973 compared to $745,607 for Q2 2006. This years sales shortfall will correct itself in the 3rd and 4th quarters, however as previously mentioned the bookings are decreased.

Gross margin. Year to date gross margin has dropped to (16%) in 2007 from 25% in 2006. The drop in gross margin in the second quarter is mainly due to the timing of shipments and revenues as described above.

Tighter expense controls reduced year to date overhead by 27% ($319,267). Q2 expenses for 2007 are 23% ($120,384) lower than Q1 2006. All of the overhead items were improved from last year.

Earnings (Loss). Loss for the first half, before interest, income taxes and amortization and depreciation (EBITDA), fell to $978,596 from $686,489 and the net loss was $1,187,828 compared to $792,379 in 2006.

Fully diluted loss per share was $0.05 in Q2 2007 and $0.04 in Q2 2006.

All figures are Canadian.

The information herein contained should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the period ended June 30, 2007, available at www.sedar.com.

About Option-NFA Inc.

Our mission is to continue to build on our reputation for producing the highest quality, best performing products available to the snowboarding consumer.

Option-NFA is a Vancouver based designer and manufacturer of hard goods and clothing for the boardsports markets. The Company has sales offices in Europe, Asia, Australia and North America and its products are endorsed by an elite team of high profile professional snowboarders from around the world. The Company went public in 1999 and trades on the TSX Venture Exchange (TSX-V) under the symbol OPN.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Option-NFA Inc.
    Steve Dewar
    President & CEO
    (604) 255-5594 ext. 121