November 29, 2007 17:29 ET

Option-NFA Inc. Reports Third Quarter Results

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

Total sales for the quarter were down 58% in 2007 to $1,589,175 compared to $3,835,645 for Q3 2006. This year's sales shortfall is attributed to decreased booking orders from our customers. Some of the decrease is anticipated to be made up in the fourth quarter.

Gross margin has dropped to 13% in Q3 2007 from 25% in Q3 2006. The drop in gross margin in the third quarter is mainly due to the processing of our distributor orders which yield a lower margin. The majority of our remaining orders are for North American customers which will represent a higher gross margin when realized.

Tighter expense controls reduced year to date overhead by 24% ($464,368). Q3 expenses for 2007 are 20% ($145,101) lower than Q3 2006. Most overhead items were improved from last year.

Loss for the first nine months, before interest, income taxes and amortization and depreciation (EBITDA), fell to $1,134,671 from $444,703 and the Net loss was $1,446,781 compared to $673,222 in 2006.

Fully diluted loss per share was $0.02 in Q3 2007 and fully diluted income per share was $0.01 in Q3 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 September 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