CAM Designs Inc. Announces Fourth Quarter and Year End Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and COVENTRY, UK--(BUSINESS WIRE)--Sept. 15, 1998--CAM Designs Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMDA-CMDW) is disappointed to announce that for the year ended May 31, 1998, total revenues at $25.1 million down three (3%) percent from the prior year of $25.9 million. This was derived generally from poor economic and commercial conditions prevailing, particularly in the United Kingdom and especially, in the Far East. However, during the period, gross margins improved dramatically running at ten (10%) percent of sales compared with the prior year of a gross loss after project write-offs. The gross margin realized was adversely affected by the highly competitive environment and a shift in the mix of work. The Company is seeking a greater percentage of its business from cost plus contracts rather than fixed price contracts to avoid the issues of cost overruns. Moreover, in an effort to restore profitability for the future, the Company has: - terminated operations at the Warwick Plant - derived annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of $2 million per annum, including Warwick The loss before income taxes for the year was $3.7 million compared with the prior year loss of $4.6 million, resulting in a loss per share of $1.63 compared to last year's loss of $1.47 per share. In the year ended May 31, 1998, the results were adversely affected by a number of actors but most importantly, $1 million has been expended on closure and termination costs which will reduce the fixed cost base by $0.75 million per month. Other factors which influenced the results were: - a major customer deciding to hold in abeyance A lapse in succession during which there is no person in whom title is vested. In the law of estates, the condition of a freehold when there is no person in whom it is vested. In such cases the freehold has been said to be in nubibus (in the clouds), in pendenti a number of its planned automotive projects - a delay in start of EFA EFA essential fatty acid. Nimrod Nimrod, in the Bible, descendant of Cush who is recorded as a mighty hunter. Nimrod Biblical hunter of great prowess. [O.T.: Genesis 10:9; Br. Lit.: Paradise Lost] See : Hunting aerospace programs - Far East economic conditions which reduced and delayed the placement of development programs Overall, the company is better structured and leaner for 1998/99 and is currently involved in discussions for additional financing. Management believes that the Company will be poised to aggressively compete in its market with improved results. CAM Designs Inc., primarily based in the U.K., is a premier design and engineering house for the automotive and aerospace industries in Western Europe, the United States and the Pacific Rim. Statements in this news release looking forward in time are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties, including general economic conditions, delays and risks associated with the negotiation, implementation and/or performance of contracts, consumer and industry acceptance, and regulatory actions and risks. CONTACT: CAM Designs Inc., Coventry, UK John R. Davidson, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 011-44-1-203-407-700 |
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