TORONTO, ONTARIO – Coretec Inc. has reported its financial results for the first quarter ending March 31.
Coretec reported revenues of $18.5 million in the quarter ended March 31, 2008, an 18.9% decrease over the prior year period revenue of $22.8 million and a decrease sequentially of 2.2% from Q4 2007.
Gross profit in the quarter was 15.4% of sales compared to 20.3% in the prior year period and 16.1% in the fourth quarter of 2007. Net loss for the quarter was $1 million compared to a net loss of $0.6 million for the same period in 2007.
Sequentially, the company showed a net increase of $0.4 million as compared to a net loss of $1.4 million in the fourth quarter of 2007.
"Softness in order activity levels from Q4 carried into January and February at all sites as well as in the company's offshore business. The major contributor to the… compression of our revenues was the change in the US dollar [to] Canadian dollar exchange rate. In Q1 we estimate that the impact to revenues of the change in the value of the US dollar relative to the Canadian dollar was in excess of $3 million when compared to the first quarter of 2007. As a result we have undertaken measures on both the revenue generation and cost effectiveness fronts to enable us to overcome this challenge", said Paul Langston, CEO.
"From a cost perspective, we implemented a staff reduction in our Toronto operations in February 2008 that will realize savings of $0.3 to $0.4 million per quarter. Also noteworthy is the manufacturing and planning yield improvements, which we have made at each of our sites. This combined with utility conservation initiatives as well as tight controls with respect to other labor costs we believe will result in improved financial metrics in subsequent quarters," added Langston.
ENDICOTT, NY — The U.S. Department of Defense has awarded Endicott Interconnect Technologies (EI) a $148.6M contract modification for the continuation of its program to produce card frame assemblies.
BEIJING, CHINA – According to industry reports, China Minmetals has bought HPTec, Germany's manufacturer of drills and cutters, for an unspecified price.
The company said that it will assume 100% control of the Ravensburg Germany-based company, which produces printed circuit board (PCB) microcutting tools.
Founded in 1977, HPTec has locations in Singapore, Korea and China.
BEAVERTON, OR – Merix Corporation has hired George Dramowicz to a newly created position, vice president of quality. Mr. Dramowicz was most recently the director of corporate/global quality at Celestica International. Prior to Celestica, Dramowicz worked for Honeywell/Allied Signal, Canadian Marconi and Pratt & Whitney Canada. Dramowicz has engineering degrees from Warsaw Technical University and has attended the Management Institute at McGill University. Dramowicz joins recent hire, Steven Lach, the new vice president of North American operations. In January president and CEO, Michael Burger indicated the need for management changes after a disappointing second quarter.
SCARBOROUGH, ONTARIO – Milplex Circuit (Canada) Inc. announces the appointment of Damon DeSilva as National Sales Manager. DeSilva will report to Natu Patel, president of Milplex Ciruits. DeSilva will be responsible for all outside sales including the managing of the independent representative sales network. DeSilva most recently worked for Sanmina. He brings years of expertise to Milplex Circuit (Canada) Inc.
