Carmanah Technologies Corporation (Toronto:CMH.TO) announces its financial results for the six months ended June 30, 2007.
“During Q2 2007, Carmanah faced challenges on many fronts,” states Art Aylesworth, Carmanah’s CEO. “The sudden rise of the Canadian dollar resulted in lower sales, lower margins, as well as losses from a working capital revaluation; the combined impact on the quarter is estimated at $1.5 million pre-tax as well as a 5% reduction in gross margin. Carmanah’s operating costs also increased disproportionately, as the Company ramped up in support of anticipated growth. In addition, as part of an ongoing analysis of inventories, Carmanah recorded an additional inventory allowance of $660,000 in June 2007 to allow for slow moving and obsolete inventory.”
“The net result was unsatisfactory performance for Q2 2007 and an unsettling time for Carmanah and its shareholders,” states Aylesworth. “However, we believe that shareholders should not lose sight of the fact Carmanah is uniquely positioned in one of the most significant growth areas in technology. Our differentiated, higher margin offerings in energy-efficient, renewable technologies have a great future. We are making the changes in our executive management depth, operations and execution to ensure that we maintain leadership in this space.”
Revenues for the three months ended June 30, 2007 were $15.4 million compared to $15.8 million in the prior year. Revenues for the six months ended were $30.6 million compared to $28.4 million in the prior year. The reduction in year-over-year Q2 sales is primarily due to the decline of the US dollar.
Loading...