|
|
|
|
| Cygnal Q1 Revenues up 121%, EBITDA Rises 149 % |
| Cygnal Technologies Corporation (TSE:CYN) reported today record revenues and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first quarter ended March 31, 2001. |
| May 14, 2001 |
Oshawa, Ontario - May 14, 2001: Cygnal Technologies Corporation (TSE:CYN) reported today record revenues and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first quarter ended March 31, 2001.
Revenues for the first quarter of 2001 rose 121% to $31.6 million, compared with $14.3 million in the first quarter of 2000. EBITDA increased 149% to almost $1.5 million or $0.10 per share from just under $0.6 million or $0.06 per share in the same period last year. Net earnings increased to $233,175 or $0.02 per share from $177,274 or $0.02 per share in the first quarter of 2000.
These increases primarily result from the acquisitions of Accord Communications Inc. and Integrated Cable Systems Inc. in mid-2000.
"We are pleased with our financial results for the quarter and our solid start to the year," said Doug Young, President and CEO of Cygnal Technologies Corporation. "Despite general volatility in the technology sector, we are seeing good activity in our core markets. Whether building new networks or upgrading existing ones, the trend is clear: more organizations are outsourcing the design, build and management of their networks to companies with the expertise, range of services and geographic coverage of Cygnal."
Q1 Highlights:
· Awarded a $5 million contract to equip Kawartha Pine Ridge District schools with a high-speed wired and wireless broadband network, enabling advanced educational applications and services for 45,000 students, teachers and staff.
· Awarded a $4 million network rebuild from Access Communications for the delivery of new products and services, such as video-on-demand, voice over Internet Protocol (VOIP), and content-on-demand to 60,000 customers.
· Implemented a digital communications system for Eastlink Cable Systems, valued at $1.8 million, to digitize video and audio signals, enhance network management and allow for improved delivery of digital cable, high-speed Internet, and telephone services.
Subsequent Events
· Acquired West Technical Technologies Inc., specialists in the design and installation of telecom networks.
· Selected by Upper Canada Networks (UCNet) to build a $1.2 million wireless high-speed broadband network to offer wireless broadband local access services in rural Canada.
"In addition to working on exciting projects such as these, we continue to build Cygnal by integrating our most recent acquisitions and searching for additional companies to add to the Cygnal group," added Mr. Young.
Business Outlook
Following a review of its 2001 business plan and outlook, Cygnal is reaffirming the guidance provided in its press release of March 14, 2001, and expects revenues for the fiscal year ending December 31, 2001 to be between $140 million and $150 million and expects earnings per share in the same period to be within the range of $0.18 to $0.22 per share.
About Cygnal Technologies
Cygnal Technologies designs, equips, integrates and manages wired and wireless broadband, data and telecommunications networks allowing users to communicate effectively and economically. Customers include cable companies, telephone companies, broadcasters, utilities and other corporations. Cygnal has expertise in all communication technologies including satellite, coaxial cable, fibre optic, twisted pair and microwave. Please visit our website at http://www.cygnal.ca for more information on Cygnal Technologies.
|
|
 |
