Cygnal Reports Third Quarter Financial Results.MARKHAM, Ontario Markham (2006 Population 261,573[0]) is located in York Region, directly north of Toronto, and is part of Toronto's CMA. It is larger than many Canadian cities. Despite its qualifications regarding population, it has not had the title of city conferred upon it by the -- Network Operations sales increase 55 percent versus previous quarter; Gross Margins over 20 percent Cygnal Technologies Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CYN CYN Canyon ) ("Cygnal" or "the Company"), a leading Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. provider of network communication solutions, today reported its third quarter financial results for the period ended September September: see month. 30, 2004. For the three-month period ended September 30, 2004, the Company reported revenues of $39.8 million versus revenues of $39.5 million for the same period in 2003. Gross profit amounted to $8.7 million or 21.8 percent of revenues for the period compared to $10.1 million or 25.6 percent of revenues for the same period last year. The Company's net loss for the quarter, including the impact of a $1.8 million work force reduction charge, was $1.9 million or $0.07 per share, compared to a net income of $1.0 million or $0.05 per share during the same period in 2003. For the nine-month period ended September 30, 2004, the Company reported revenues of $105.2 million versus revenues of $109.8 million for the same period in 2003. Gross profit amounted to $20.5 million or 19.5 percent of revenues for the period compared to $27.3 million or 24.8 percent for the same period last year. The Company's net loss for the nine-month period was $6.4 million or $0.26 per share, compared to a net loss of $0.1 million or $0.00 per share during the same period in 2003. Third quarter revenues increased by 34 percent compared to the previous quarter mainly as a result of increased sales activity in the Network Operations segment. Revenues from the Network Operations business in the quarter were $22.6 million, representing a 55 percent increase from $14.6 million in the second quarter of 2004. Cygnal is forecasting revenues of $35 to $38 million for the fourth quarter of 2004 with Network Operations revenues exceeding $20 million in the quarter. Gross profit as a percentage of revenues increased to 21.8 percent in the third quarter of 2004 from 18.8 percent in the second quarter of this year, and 17.6% in the first quarter of 2004. During the third quarter of 2004, the Company increased its provision for inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. by $0.1 million. The Company is continuing to work on improving gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. through improving labour utilisation, project mix and pricing. Cygnal expects gross profit margins in the fourth quarter to continue to be in excess of 20 percent. Selling, general and administrative (SG&A) expenses declined slightly to $8.7 million from $8.8 million in the previous quarter. These costs are higher than the guidance provided in the second quarter financial results press release primarily due to additional provisions for bad debts and foreign exchange losses totalling $0.4 million. Management expects SG&A expenses for the fourth quarter to be in the range of $7.9 to $8.2 million. "In the short term, management remains focused on further improving the growth and profitability of the overall business with particular attention to the Network Operations segment, which is now consistently achieving our monthly bookings targets. The work ahead of us relates primarily to improving gross profit margins while guiding our SG&A expenses below $8 million per quarter," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. Hurlow, Chairman and Chief Executive Officer. "In the first half of 2005 we expect to start enjoying the benefits of having one consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Network Operations platform." Significant Business Activities Significant activities that occurred during the third quarter of 2004 were as follows: In July July: see month. 2004 the Company announced the appointment of Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. Rutherford Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. to Senior Vice President of the Company, as well as President and General Manager of the Network Solutions Group. In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with Mr. Rutherford's appointment, the Company announced the resignation of Dave Sherry sherry [from Jérez], naturally dry fortified wine, pale amber to brown in tint. The term sherry originally referred to wines made from grapes grown in the region of Jérez de la Frontera, Andalusia, Spain; today it may refer to any of the , Senior Vice President of Operations for the Network Solutions Group. Effective August 13, 2004, at the request of the Board of Directors, Kieron Dowling Dowling is a surname, and may refer to
tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. Gerald Hurlow, the Company's Chairman, to the additional position of Chief Executive Officer. In August 2004 the Company eliminated approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 58 positions in Network Operations. The Company expects to generate in excess of $2.0 million of 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 as a result of this reduction. This workforce reduction plan resulted in a severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charge of $1.8 million in the third quarter of 2004. In September 2004 the Company announced the completion of a multi-million dollar contract awarded to the Company by The Bank of Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography . Under the terms of the contract, Cygnal has installed and will maintain a BT Syntegra campus turret system across the bank's 250 position trading position trading The purchase or sale of an inventory by a dealer. floor in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and an additional 100 trading positions at the firm's remote Business Continuity Planning Business Continuity Planning (BCP) is an interdisciplinary peer mentoring methodology used to create and validate a practiced logistical plan for how an organization will recover and restore partially or completely interrupted critical function(s) within a predetermined (BCP BCP Best Current Practice(s) BCP Business Continuity Planning BCP Business Continuity Plan BCP Book of Common Prayer BCP Banco Comercial Português BCP Bureau of Consumer Protection (US Federal Trade Commission) ) centre. The deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of this new system will enable the bank to handle all system administration and configuration changes centrally, thus eliminating the need for costly duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. maintenance services while ensuring the synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. of both systems. Advantages will include improved efficiency and significant cost savings in operating and supporting the remote BCP site. Results of Operations Revenue For the three months ended September 30, 2004, revenues increased by $0.3 million to $39.8 million from $39.5 million for the same period a year ago. This increase was comprised of an increase in Communications Services of $0.6 million, offset by a decline in Network Operations of $0.3million. The $0.6 million increase in Communications Services was primarily the result of increased sales volume in telecom products. The $0.3 million decline in Network Operations was primarily a result of exiting business lines during 2003 that was offset by revenue from the installation of a BT Syntegra system for The Bank of Nova Scotia. Revenues from Network Operations represented 56.8% of the Company's total revenues for the three months ended September 30, 2004, compared to 58.0% for the three months ended September 30, 2003, while revenues for Communications Services represented 43.2% for the three months ended September 30, 2004, compared to 42.0% for the three months ended September 30, 2004. Inter-segment sales have been eliminated in the above analysis. The change in percentage is a result of Network Operations sales declining by $0.3 million and Communications Services sales increasing by $0.6 million in the third quarter for the reasons stated above. For the nine months ended September 30, 2004, revenues decreased by $4.6 million to $105.2 million from $109.8 million for the same period a year ago. This decrease was comprised of an increase in Communications Services of $6.7 million, offset by a decline in Network Operations of $11.3 million. This decline in Network Operations was primarily a result of exiting business lines during 2003, delay of customer projects and slowness in the receipt of new orders, and the disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to the selling organization due to the transition from a multi-divisional structure to a single unit that was initiated in 2003. As a result, the Company experienced negative internal revenue growth for the nine months ended September 30, 2004. Revenues from Network Operations represented 51.0% of the Company's total revenues for the nine months ended September 30, 2004, compared to 59.1% for the nine months ended September 30, 2003, while revenues for Communications Services represented 49.0% for the nine months ended September 30, 2004, compared to 40.9% for the nine months ended September 30, 2003, for the reasons provided above. Inter-segment sales have been eliminated in the above analysis Gross Profit For the quarter ended September 30, 2004, gross profit decreased $1.4 million to $8.7 million from $10.1 million for the same period in the prior year. Gross profit, expressed as a percentage of revenue, decreased from 25.6% in the third quarter of 2003 to 21.8% for the third quarter of 2004. This decrease was primarily the result of a reduced sales volume and lower margin sales in the Network Operations segment and sales by Communications Services at margins similar to last year, but at margins lower than in Network Operations and a charge of $0.1 million for obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. in the quarter. A gross profit of 21.8% was an improvement over the second quarter of 2004 by approximately 2.9%. For the nine months ended September 30, 2004, gross profit decreased $6.7 million to $20.5 million from $27.3 million for the same period in the prior year. Gross profit, expressed as a percentage of revenue, decreased from 24.8% in the third quarter of 2003 to 19.5% for the third quarter of 2004. Selling, General and Administrative Expenses SG&A expenses increased $0.8 million or 10.5% to $8.7 million in the third quarter ended September 30, 2004 from $7.8 million in the same period of 2003. These costs are higher than the guidance provided in the second quarter financial results press release primarily due to additional provisions for bad debts and foreign exchange losses totalling $0.4million. For the nine months ended September 30, 2004, SG&A expenses increased $1.1 million or 4.4% to $25.7 million from $24.6 million in the same period of 2003. Severance costs In August 2004 the Company initiated a workforce reduction plan in the Network Operations segment, which resulted in a charge of $1.8 million in the third quarter of 2004. Included in this amount is $0.4 million related to the settlement of the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the employment contract with the Company's former Chief Executive Officer. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become EBITDA for the third quarter ended September 30, 2004 decreased $4.1 million to a loss of $1.8 million from a profit of $2.3 million in the third quarter of 2003. The decline primarily resulted from the decrease in gross margin of $1.4 million, an increase in SG&A costs of $0.8 million, for the reasons discussed above, and an increase in severance costs of $1.8 million. See "Key Performance Drivers" above for a description of EBITDA For the nine months ended September 30, 2004, EBITDA decreased $9.6 million to a loss of $7.0 million from a profit of $2.6 million in the same period of 2003. See "Key Performance Drivers" above for a description of EBITDA. Restructuring Charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. For the nine months ended September 30, 2003 the Company recorded restructuring charges of $0.6 million primarily related to workforce reduction charges. There was no restructuring charge in the nine month period ended September 30, 2004. Interest Expense Interest expense for the three months ended September 30, 2004 was $0.2 million, compared with $0.3 million from the same period the previous year. For the nine months ended September 30, 2004 interest expense was $0.7 million, compared with $1.0 million from the same period the previous year. Amortization of Capital and Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. Amortization of capital and intangible assets for the third quarter ended September 30, 2004 was $0.4 million, compared with $0.3 million from the same period the previous year. For the nine months ended September 30, 2004 capital and intangible assets amortization was $1.3 million compared with $1.0 million from the same period the previous year. The increase resulted from the capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) purchased in 2003. Net Loss/ Earnings Net loss for the third quarter of 2004 was $1.9 million, a decrease of $2.9 million from earnings of $1.0 million in the third quarter of 2003. The loss was primarily due to lower gross profit margins, increased SG&A costs and an increase in severance costs as compared to the same period the previous year. The loss per share, basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , for the third quarter of 2004 was $0.07, compared to earnings per share of $0.05 in the third quarter of 2003. The weighted average basic shares outstanding for the quarter ended September 30, 2004 was 26,741,603 compared to 19,051,419 for the quarter ended September 30, 2003. The net loss for the nine months ended September 30, 2004 was $6.4 million, a decrease of $6.4 million from a breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in the same period of 2003. The loss per share, basic and diluted, for the nine months ended September 30, 2004 was $0.26, compared to an earning of $0.00 for the same period of 2003. The weighted average basic shares outstanding for nine months ended September 30, 2004 was 24,242,510 compared to 17,376,476 for the same period the previous year.
Summary of Cash Flows
The table below is a summary of the cash flows for the periods ended
September 30, 2004 as compared to those for the same period the prior
year.
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Three months ended Nine months ended
September 30 September 30
--------------------------------------
(Differences due to rounding) 2004 2003 2004 2003
---------------------------------------------------------------------
Net earnings adjusted
for non-cash items ($1.9) $1.5 ($7.7) $0.8
Non-cash working capital items (0.9) (1.5) (0.7) (2.7)
Net cash (used)/provided for
operating activities (2.8) 0.0 (8.4) (1.9)
Cash used for investing
activities (0.6) 0.7 (1.8) 0.6
Cash provided/(used) by
financing activities 3.4 (0.7) 10.2 1.3
Net increase in cash $0.0 $0.0 $0.0 $0.0
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Operating Activities Cash used for operating activities in the third quarter ended September 30, 2004 totalled $2.8 million compared to cash provided of $0.0 million for the same period in 2003. During the third quarter of 2004 the Company had a net loss adjusted for non-cash items of $1.9 million and non-cash working capital items of $(0.9) million, resulting in net cash used for operating activities of $2.8 million. Non-cash working capital used $0.9 million primarily related to the increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of $6.7 million, a decrease in inventory of $5.7 million and a decrease in accounts payable of $1.4 million. The increase in accounts receivable and decrease in inventory is primarily a result of increased sales in the third quarter. During the third quarter of 2003, the Company generated a net earnings adjusted for non-cash items of $1.5 million and used $1.5 million from non-cash working capital items resulting in net cash provided for operating activities of $0.0 million. Cash used for operating activities in the nine months ended September 30, 2004 totalled $8.4 million compared to cash used of $1.9 million for the same period in 2003. During the nine months ended September 30, 2004 the Company had a net loss adjusted for non-cash items of $7.7 million and non-cash working capital items of $0.7 million, resulting in net cash used for operating activities of $8.4 million. During the same period in 2003 the Company had net earnings adjusted for non-cash items of $0.8 million and non-cash working capital items of $(2.7) million, resulting in net cash used for operating activities of $1.9 million. Investing Activities During the quarter ended September 30, 2004 cash used for investing activities was $0.6 million, compared with cash provided of $0.7 million for the same period the previous year. The Company purchased capital assets of $0.6 million in the third quarter of 2004 mainly for use in connection with the NRBN project. During the nine months ended September 30, 2004 the Company used cash for investing activities of $1.8 million, compared with cash provided of $0.6 million for the same period the previous year. Financing Activities Cash provided by financing activities during the three months ended September 30, 2004 totalled $3.4 million, compared with cash used of $0.7 million from the same period in 2003. The Company's financing activities during the quarter ended September 30, 2004 included the receipt of approximately $0.1 million in capital lease financing and increasing its operating credit line by $5.0 million and issued common shares for $0.1 million for cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. of $5.2 million. The Company repaid $1.8 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , resulting in net cash provided by financing activities in the third quarter of 2004 in the amount of $3.4 million. Financing activities during the quarter ended September 30, 2003 included reducing the operating credit line by $5.2 million and repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of long term debt of $1.7 million for a total cash outflow of $6.9 million. Cash was provided to the Company by issuance of common shares of $6.2 million resulting in net cash used by financing activities of $0.7 million. For the nine months ended September 30, 2004 cash provided by financing activities totalled $10.2 million, compared with cash provided of $1.3 million from the same period in 2003. The Company's financing activities during the nine months ended September 30, 2004 included receiving approximately $0.5 million in capital lease financing, receiving $8.9 million from the issuance of special warrants (exercised for common shares) and the exercise of broker warrants and an increase in operating line of credit of $4.0 million for total cash inflow of $13.4 million. The Company repaid $3.2 million of long-term debt resulting in net cash provided by financing activities in the nine months of 2004 in the amount of $10.2 million. The financing activities during the nine months ended September 30, 2003 included increasing the operating credit line by $2.0 million and repaying long-term debt of $3.0 million for a total cash outflow of $5.0 million. The Company received $0.1 million in capital lease funding and $6.2 million from the issuance of common shares, resulting in net cash provided by financing activities in the nine months of 2003 of $1.3 million.
CYGNAL TECHNOLOGIES CORPORATION
Consolidated Statement of Loss and Deficit
for the periods ended September 30, 2004 and 2003
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Three months ended Nine months ended
September 30 September 30
2004 2003 2004 2003
---------------------------------------------------------------------
(Unaudited) (Unaudited)
$ $ $ $
Revenue 39,824,235 39,512,265 105,194,930 109,843,175
Cost of sales 31,143,103 29,392,762 84,665,515 82,579,378
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8,681,132 10,119,503 20,529,415 27,263,797
Selling, general
and
administrative
expenses 8,661,408 7,840,353 25,730,281 24,641,313
Severance costs 1,780,652 - 1,780,652 -
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(Loss) earnings
before the
following (1,760,928) 2,279,150 (6,981,518) 2,622,484
---------------------------------------------------------------------
Interest expense 203,952 295,306 735,304 972,403
Amortization of
capital assets
and intangible
assets 424,090 298,081 1,319,672 1,016,755
Restructuring
charges - - - 598,875
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628,042 593,387 2,054,976 2,588,033
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(Loss) earnings
before income
taxes (2,388,970) 1,685,763 (9,036,494) 34,451
(Recovery of)
provision for
income taxes (450,994) 708,529 (2,660,484) 105,105
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Net (loss)
earnings (1,937,976) 977,234 (6,376,010) (70,654)
Deficit,
beginning
of period (15,472,131) (11,117,755) (11,034,097) (10,069,867)
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Deficit, end
of period (17,410,107) (10,140,521) (17,410,107) (10,140,521)
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Basic (loss)
earnings per
share $ (0.07) $ $0.05 ($0.26) $0.00
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Diluted (loss)
earnings per
share $ (0.07) $ $0.05 ($0.26) $0.00
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CYGNAL TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
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As at As at
September 30 December 31
2004 2003
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$ $
(Unaudited) (Audited)
Assets
Current assets
Accounts receivable 32,512,678 27,439,826
Inventory 21,216,445 24,797,451
Income taxes recoverable 209,605 1,300,012
Prepaid expenses and deposits 1,775,998 1,211,432
Future income taxes 552,902 1,443,839
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56,267,628 56,192,560
Future income taxes 5,102,342 879,668
Capital assets 5,598,345 5,373,601
Goodwill and other intangible assets 29,468,712 29,136,808
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96,437,027 91,582,637
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Liabilities
Current liabilities
Bank indebtedness 15,199,440 11,185,122
Accounts payable and
accrued liabilities 26,845,073 28,467,383
Current portion of long-term debt 740,412 2,510,077
Deferred revenue 3,077,601 1,535,993
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45,862,526 43,698,575
Long-term debt 578,461 1,595,467
Deferred revenue 1,270,534 1,364,202
---------------------------------------------------------------------
47,711,521 46,658,244
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Shareholders' equity
Share capital 64,793,795 55,238,532
Warrants 734,820 450,000
Contributed surplus 606,998 269,958
Deficit (17,410,107) (11,034,097)
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48,725,506 44,924,393
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96,437,027 91,582,637
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CYGNAL TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
for the periods ended September 30, 2004 and 2003
---------------------------------------------------------------------
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Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2004 2003 2004 2003
---------------------------------------------------------------------
$ $ $ $
Operating activities
Net (loss) earnings (1,937,976) 977,234 (6,376,010) (70,654)
Adjustments for
non-cash items:
Amortization of
capital assets and
intangible assets 424,090 298,081 1,319,672 1,016,755
(Gain) loss on sale
of assets - (10,381) (8,406) 391
Stock compensation
expense 128,040 - 337,040 -
Restructuring
charges - - - 598,875
Future income taxes (492,021) 334,091 (2,889,737) (619,687)
Amortization of
deferred revenue (37,108) (37,108) (111,324) (111,324)
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(1,914,975) 1,561,917 (7,728,765) 814,356
Changes in non-cash
working capital
items (892,948) (1,521,218) (679,488) (2,685,033)
---------------------------------------------------------------------
Cash (used for)
provided by
operating
activities (2,807,923) 40,699 (8,408,253) (1,870,677)
---------------------------------------------------------------------
Investing activities
Acquisition of
capital assets, net (646,350) (435,043) (1,794,799) (824,206)
Business acquisitions
(net of cash acquired) - - (466,241) -
Proceeds on sale of
assets - - 505,563 -
Proceeds on sale of
assets related to
restructuring - 1,133,654 - 1,378,434
---------------------------------------------------------------------
Cash (used for)
provided by
investing
activities (646,350) 698,611 (1,755,477) 554,228
---------------------------------------------------------------------
Financing activities
Capital lease
financing 116,591 - 475,585 53,148
Repayment of
long-term debt (1,778,715) (1,697,386) (3,262,256) (2,960,932)
Issuance of common
shares, special
warrants and
broker purchase
warrants 93,162 6,167,134 8,936,083 6,228,956
Increase (decrease)
in operating line
of credit 5,023,235 (5,209,058) 4,014,318 (2,004,723)
---------------------------------------------------------------------
Cash provided by
(used for) financing
activities 3,454,273 (739,310) 10,163,730 1,316,449
---------------------------------------------------------------------
Net increase in
cash position - - - -
Cash position,
beginning of period - - - -
---------------------------------------------------------------------
Cash position,
end of period - - - -
---------------------------------------------------------------------
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Company Background Cygnal Technologies Corporation is a leading Canadian provider of network communication solutions including the design, installation, maintenance and management of wired and wireless communication networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged technologies. Cygnal Technologies Corporation is headquartered in Markham, Ontario and supports end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. customers and business partners through 15 offices across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. , including Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located , Calgary Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Winnipeg Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Brampton Brampton, city (1991 pop. 234,445), S Ont., Canada, NW of Toronto. Incorporated as a village (1852), a town (1873), and then a city (1976), it is noted for its greenhouses and flowers. Automobiles, shoes, lumber, optical goods, and other products are made. , Mississauga Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing , Toronto, Sudbury Sudbury, city, Canada Sudbury, city (1991 pop. 92,884), central Ont., Canada. It is the center of Canada's largest mining region, which produces much of the world's nickel and large quantities of copper, platinum, gold, silver, cobalt, and sulfur. , Ottawa Ottawa, city, Canada Ottawa (ŏt`əwə), city (1991 pop. 313,987), capital of Canada, SE Ont., at the confluence of the Ottawa and Rideau rivers. Hull, Que. , Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. City and Halifax Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. . Cygnal common shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol CYN. No stock exchange or regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities has approved or disapproved of information contained herein. Certain information included in this news release is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and is subject to important risks and uncertainties. When used in this news release, the words "believe", "intend", "estimate", "expect", "plan" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things, the impact of price and product competition, the ability of the Corporation to make acquisitions and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. integrate the operations and technologies of acquired businesses in an effective manner, general industry and market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , the impact of consolidations in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry and stock market volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the . For additional information with respect to certain of these and other factors, see the reports filed by Cygnal Technologies with applicable Canadian securities administrators Canadian Securities Administrators(CSA) is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets. . Cygnal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Cygnal Technologies Corporation (TSX:CYN) |
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