Cirmaker Technology Reports Second Quarter 2004 Financial Results
August 19 2004 - 4:08PM
PR Newswire (US)
Cirmaker Technology Reports Second Quarter 2004 Financial Results
Revenue Rises 27.2% from the Same Quarter a Year Ago NEW YORK, Aug.
19 /PRNewswire-FirstCall/ -- Cirmaker Technology Corp. (OTC:CRKT)
(BULLETIN BOARD: CRKT) , which manufactures set top boxes for
digital TV signal reception, CPU coolers for computers and
electronics components, today announced financial results for the
second quarter, ended June 30, 2004. Revenue for the period rose
27.2% to $5.43 million from $4.27 million in same quarter a year
ago. The results for first and second quarters of 2003 have been
restated to reflect the Company's 25% minority interest in Cirmaker
Taiwan, its manufacturing operation located in Taiwan. Gross profit
was $275,447 versus $636,525 in the second quarter of 2003. The
Company attributed the gross profit decline to higher copper
prices, which it was not able to pass through to its customers. The
net loss in the period was $601,540, or $0.02 a share, before
foreign currency translation adjustment and $698,005 after foreign
currency translation adjustment. This compares to a net loss in the
same period in 2003 of $119,989, or flat, before currency
adjustment and net income of $81,049 after the currency adjustment.
The Company noted that the US dollar appreciated in value against
the Taiwan dollar in the recent quarter, while decreased in value
versus the Taiwan dollar in the prior year period. Net income was
adversely affected by increased general and administrative
expenses, driven largely by expenses incurred by the Company's
participation in 10 trade shows during the second quarter of 2004.
President Bill Liao of Cirmaker Technology, said, "We are pleased
that during the quarter we received the three required licenses
from the mainland Chinese government agencies to manufacture
set-top boxes (stbs) for satellite, cable and microwave connections
that are capable of converting an analog signal to a digital
signal. We have begun manufacturing these items in our facility in
Dong Guan City in Guangdong province in Southeastern mainland
China." Revenue for the first half of 2004 rose 16.8% to $9.36
million from $8.01 million in the first six months of the prior
year. The gross profit for the period was $649,073 versus a gross
profit of $1.16 million in the prior period. As of June 30, 2004,
the Company had $205,897 in cash and cash equivalents on the
balance sheet, up 145.3% from $83,934 in cash holdings a year ago.
Cirmaker Technology believes that its cooling system units for
laptop and personal computers are superior in several respects to
other products on the market. First, they are developed in
partnership with the client so that they meet each client's
particular specifications. Second, Cirmaker Technology's expertise
in making cooling fin assemblies, a critical component of cooling
units, results in smaller (about half the size of typical
assemblies), higher quality (due to a patented design and
manufacturing method), lower cost (20% less than typical
competitors) and more efficient cooling products. Cirmaker
Technology fin assemblies cut cooling fan power requirements by
two-thirds, a key factor in reducing laptop battery drain. Cirmaker
Technology believes that major suppliers to the laptop computer
industry are sourcing Cirmaker Technology cooling systems after
determining that they have the lowest defect rates of any
competitive manufacturer. 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 projected increases in sales and profitability. 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
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. For more
information, please contact: Cirmaker Technology Corporation Stern
& Co. Charles R. Skeele Truc N. Nguyen General Manager, US VP,
Investor Relations Telephone: 917-639-4098 Telephone: 212-888-0044
Email: Email: DATASOURCE: Cirmaker Technology Corporation CONTACT:
Charles R. Skeele, General Manager, US, of Cirmaker Technology
Corporation, +1-917-639-4098, ; or Truc N. Nguyen, VP, Investor
Relations of Stern & Co., +1-212-888-0044, , for Cirmaker
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