RICHMOND, BRITISH COLUMBIA -- (Oct. 7, 2008) - CON-SPACE Communications Ltd. (TSX VENTURE:CCB), a world leader in specialized voice communication products, technical search, surveillance and inspection systems, announced today that preliminary revenue numbers for the 1st quarter, ended September 30, 2008, were approximately 25% ahead of the previous year's 1st quarter.
Sales increased by 25% for the first quarter of fiscal 2009, to approximately $2.33M as compared to $1.87M for the 1st quarter fiscal 2008. "This increase reflects the impact of several key structural and operational changes we've made to the Company over the last eight months," said President, Gordon Cook.
"Beginning with our management team, we now have the right people in key positions throughout the organization," stated Cook, adding, "We've also reviewed and rationalized the sales and distribution channel to align more closely with our customers. While we're working with fewer distributors, we've chosen those who have the greatest potential for future growth." With the acquisition of Search Systems Inc., the Company has bundled its procurement process which has lead to additional cost savings.
Over the next six months, CON-SPACE will continue to integrate its product lines where appropriate and launch an aggressive sales and marketing campaign targeting key industry markets. "We are now capitalizing on the synergies we saw between CON-SPACE and Search Systems prior to the acquisition," Cook concluded. In support of this premise the Company ended the quarter with a backlog of $1.24M in outstanding orders.
Official first quarter results, including analysis and profitability, are expected to be filed and made available during the later part of November.
About CON-SPACE
CON-SPACE Communications Ltd., and its subsidiary, Search Systems, Inc. are recognized as leading designers and manufacturers of specialized voice communication equipment, video/audio systems, technical search, surveillance and inspection systems. Their equipment is sold throughout the world to police, fire, rescue, government agencies, militaries, municipalities and general industry under the CON-SPACE and Search Systems labels and under private labels through OEMs. CON-SPACE products are used in confined spaces, hazardous atmospheres, rescue applications and security situations. With headquarters located in Richmond, BC, the Company has manufacturing facilities in Bakersfield, CA, Blaine, WA; Lincoln, NE; and Newark, England. CON-SPACE also has independent distributors throughout North America, Great Britain, Europe, Australia, Asia, South America and other countries around the world.
This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the CON-SPACE Investor Contact & Information Centre. Alternatively, investors may e-mail questions and correspondence to CCB@Agoracom.com or tim@calibercap.ca.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com.
SEC Exemption #82-3378
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
