H2O Innovation Announces its Second Quarter Results 2007-2008
February 14 2008 - 6:24PM
Marketwired
QUEBEC CITY, QUEBEC (ALTERNEXT:MNEMO:ALHEO) ("H2O") announces
the results of the second quarter 2007-2008. During this period,
the Company made significant progress in terms of market
penetration in the United States, improvement in gross profit
margin and expansion in markets with strong potential.
Strong progression for the first six-month period
Revenues for the second quarter reached CAD 1,876,157. The
decrease in sales in comparison to the last quarter and to the
corresponding quarter in 2006 is mainly attributable to features of
some contracts whose advancement will be more reflected during in
subsequent quarters. Expenses have already been incurred for some
important contracts and the associated incomes will only be
recognized during the third and forth quarters. For the first six
months of the 2007-2008 financial years, sales nevertheless
increased markedly. They reached CAD 4,332,377 for the period
ending December 31, 2007. Revenues from the United States increased
to more than 70 % of the total, and opportunities in the business
development plan point to an even larger portion from this market
in the second half of the year. In addition, the efforts of the
Company to improve the gross profit margin are beginning to have an
effect. For the second quarter, the gross profit margin has risen
to 22.7 %, compared to 22.2 % for the same period last year.
Well oriented order book
With an impressive list of completed municipal projects in North
America behind it, the Company continues its expansion into this
market and plans to increase its marketing efforts. As a result,
new municipal contracts were added to the order book during the
second quarter. The majority of them are in the United States, a
buoyant market for membrane filtration technology. On December 6,
2007, H2O announced the signing of three contracts whose total
value is CAD 5.4 M. It is worth mentioning that orders on December
31, 2007 amounted to CAD 12 M.
Wider territorial coverage
In order to increase its presence in growth sectors in Canada,
H2O acquired the company Sigma Environmental Solutions Inc.
(www.sigmaenv.com) last November and appointed its principal
directors. This presence in Alberta will allow H2O to reinforce its
offering in the petroleum and mining industry and thus respond to
high demand in this segment of the market. On the international
front, the company is continuing its marketing approach in buoyant
markets that have immense needs for seawater desalination.
Quarterly financial data
CONSOLIDATED RESULTS (Unaudited)
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Three-month period Six-month period
ending December 31 ending December 31
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2007 2006 2007 2006
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CAD CAD CAD CAD
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Sales 1,876,157 2,406,298 4,332,377 3,127,943
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Gross profit 426,660 534,602 923,673 797,257
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Net loss for the
period and
comprehensive
results (748,867) (683,810) (1,726,675) (950,317)
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Basic and diluted
net loss per share (0.021) (0.029) (0.049) (0.041)
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Cash flows from
operating activities (369,512) (1,445,142) (177,490) (2,055,888)
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Additional information on the Company is available on SEDAR at
www.sedar.com and on H2O web site : www.h2oinnovation.com
About H2O
H2O mission is to develop, manufacture and market innovative,
environment-friendly, products intended for drinking water
production, wastewater treatment and industrial processes.
Prospective disclosures
This press release may contain prospective disclosures
representing current expectations of H2O and are subject to certain
risks and uncertainties. H2O rejects any obligation to revise or
update the prospective disclosures contained in this press
release.
The TSX Venture Exchange and the Alternext Exchange assume no
responsibility for the relevance or accuracy of this press
release.
Contacts: Guy Goulet Chaiman of the Board and CEO 450-227-1150
ggoulet@h2oinnovation.com Frederic Dugre President and COO
418-688-0170 fdugre@h2oinnovation.com
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