Cirmaker Technology Reports Third Quarter Financial Results
December 02 2003 - 6:00AM
PR Newswire (US)
Cirmaker Technology Reports Third Quarter Financial Results
Increased Sales of High Margin Cooling Units Produces Positive
Operating Earnings NEW YORK, Dec. 2 /PRNewswire-FirstCall/ --
Cirmaker Technology Corporation (BULLETIN BOARD: CRKT.OB) , which
manufactures set top boxes for the Chinese digital TV market,
cooling systems for personal computers and electronic parts, today
announced results for the third quarter and nine months, ended
September 30, 2003. Increased sales of high-margin units of cooling
systems for laptop and personal computers produced positive
earnings from operations, a turnaround compared to negative
operating earnings in the same quarter a year ago. Revenue in the
third quarter of 2003 was $3.36 million versus $4.54 million in the
same quarter of 2002, as lower unit sales of higher margin cooling
systems replaced traditional high volume, low margin electrical
component sales. Third quarter loss per share was $0.01, which was
flat compared to the same quarter a year ago. Growing sales of the
cooling systems, which carry much higher margins, produced
operating earnings for the quarter of $260,800 compared to a loss
of $371,952 in the same period a year ago. Gross profit grew 123.5%
to $747,388 during the third quarter of 2003, as compared to
$334,325 during the same period in the prior year, even though
sales had declined. The improvement is a result of the high gross
margins on the company's new CPU cooling systems products.
President Bill Liao of Cirmaker Technology, said, "The dramatic
turnaround in operating earnings based on sales of our
higher-margin computer cooling systems is testimony to the
company's successful new strategy. Our traditional business of
making electrical components was built on design flexibility,
quality manufacturing and customer service. We have proven that we
can carry these strengths into the manufacturing of new products,
such as cooling system units and digital TV receivers and as a
result earn higher returns." The net loss in the third quarter was
$222,593, 41.7% less than the net loss of $382,286 in the same
quarter of last year. The net loss in this year's third quarter
includes a one-time reorganization expense of $310,411. Income from
operations for the third quarter was $260,800 versus a loss of
$371,952 in the same quarter last year. For the first nine months
of 2003, while revenue declined slightly, the Company also
generated operating earnings in contrast to a loss in the year
earlier period. Revenue was $11.37 million, down slightly from the
$11.89 million recorded in the same period in the earlier year.
Operating income was $571,390, a significant improvement from the
loss of $447,986 in the first nine months of 2002. The net loss for
the period declined 91.3% to $41,512 from $482,466 in the same nine
months in 2002. Gross profit in the nine-month period, ended
September 30, 2003, grew substantially. The gross profit rose 86.7%
to $1.96 million, up from $1.05 million in the same period a year
ago. As of September 30, 2003, the Company had $216,628 in cash and
cash equivalents on the balance sheet. Mr. Liao added, "For the
past two years, Cirmaker has invested heavily in research and
marketing alliances to build upon our core competencies in design,
quality manufacturing and service. For the remainder of this year
and in 2004, we expect to expand on our success in computer cooling
systems and compound this growth with a strong entry into the
market for digital television products and services in China."
About Cirmaker Technology Corporation Cirmaker Technology
manufactures cooling systems for laptop and personal computers, a
variety of electronic components and digital set top boxes for
television sets. Headquartered in Taiwan with an office in New York
City, Cirmaker has developed digital television set top boxes that
can convert analog television broadcast signals into digital
formats so that analog TV sets can receive digital programming.
Cirmaker believes it is the only manufacturer operating in China
that can produce in volume a device that meets all the required
standards of Chinese broadcasting authorities. It is also poised to
distribute its system worldwide as it complies with all
international HDTV standards for high definition television. The
system receives, processes, stores and broadcasts analog, digital
and streaming media signals, and it supports pay-per-view as well
as video-on-demand channel signals. Forward-Looking Statements The
matters discussed in this news release contain forward-looking
statements, including statements regarding Cirmaker's continued
growth for the remainder of this year and in 2004 and regarding
Cirmaker's ability to enter into the market for digital television
products and services in China. These statements are subject to
various risks, uncertainties and other factors that could cause
actual results to vary materially from the results anticipated in
such forward-looking statements. Such risks, uncertainties and
other factors include Cirmaker's potential inability to raise
additional capital, its potential inability to satisfy its
contractual commitments with IDN Telecom, Inc. or its other
potential failure to realize the potential benefits of its
arrangement with IDN Telecom, its potential inability to compete
with other companies that may be more experienced and better
capitalized than Cirmaker, changes in domestic and foreign laws,
regulations and taxes, changes in economic conditions,
uncertainties related to the legal systems in Cirmaker's target
markets, including, China's legal system and economic, political
and social events in China and other target markets, foreign
relations between Taiwan, China and Cirmaker's other potential
target markets, a general economic downturn, a downturn in the
securities markets, Securities and Exchange Commission regulations
which affect trading in the securities of "penny stocks," and other
risks and uncertainties detailed from time to time in Cirmaker's
filings with the Securities and Exchange Commission. These
forward-looking statements represent management's judgment as of
the date of this release. Cirmaker disclaims any intent or
obligation to update these forward-looking statements. DATASOURCE:
Cirmaker Technology Corporation CONTACT: Charles R. Skeele, CEO and
CFO, of Cirmaker +1-917-639-4098, , or Truc N. Nguyen, VP, Investor
Relations of Stern & Co., +1-212-888-0044,
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