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 RICHMOND, British Columbia, Oct. 5 /PRNewswire/ -- MTC Electronic Technologies Co. Ltd. (NASDAQ: MTCEF) announced today its results for the second quarter and six months ended July 31, 1993. Revenues for the second quarter of 1993 were sharply higher at C$17 million; more than triple the C$4.72 million recorded for the same period in 1992, and up from the C$6.05 million in the quarter ended April 30, 1993.
 Net profit after tax for the quarter also showed a significant increase at C$1.06 million, vs. a net loss after tax of C$182,000 for the quarter in 1992 and a net loss after tax of C$1.01 million in the first quarter ended April 30, 1993. Second quarter 1993 earnings per share were C$0.10, on 10,781,205 shares, vs. a loss of C$0.02 per share in the year ago period, on 7,599,434 shares.
 Sales for the six months ended July 31, 1993, reflected the second quarter's rise, and totaled C$23.04 million, vs. C$10.05 million in the same period in 1992. Net profit was C$49,000 for the six months, vs. a net loss of C$715,000 for first-half 1992.
 The second quarter and first half gains reflected sales of cellular and paging equipment in China for approximately C$10 million.
 "We are pleased with the quarter's performance," said Miko Leung, chairman of MTC. "I am optimistic that we can produce increasingly good results if we continue to pursue our current strategy of making our Chinese telecommunications joint ventures successful, while maintaining an aggressive approach toward North American sales of consumer electronics."
 At the end of the second quarter, MTC's revenue stream did not yet reflect revenues from the company's mobile telecommunications joint ventures in China. The company said that it does expect to record revenues, and recognize some profit, from these Chinese joint ventures starting in the second half of 1993.
 As reported on Sept. 18, MTC's joint ventures in Dongguan and Hubei have signed up subscribers for the full capacity of each system's first phase. At the same time, the company said its Shanghai joint venture manufacturing facility had enough cellular telephone handset orders to operate at full capacity for 18 months.
 MTC said that these joint ventures, which hold business licenses issued by the Chinese government, and its other activities in China, continue to progress generally as expected.
 North American consumer electronic sales were C$6 million for the second quarter of 1993, slightly ahead of the same period in 1992.
 Operating and administrative expenses increased by C$1.7 million for the second quarter and C$2.5 million for the six months, due mainly to higher amortization and depreciation expenses, and higher engineering expenses of the joint venture systems in China.
 Quarterly and six month financial data issued by the company are reported in accordance with Canadian Generally Accepted Accounting Principles and is unaudited. The rate of conversion for the Canadian dollar to U.S. currency was 1.2857 on July 31, 1993.
 MTC Electronic Technologies Co. Ltd. is a Canadian company headquartered in Richmond, near Vancouver. The company holds interests in joint venture companies that manufacture telecommunications products and will provide telecommunications services in the People's Republic of China. It also manufactures and sells MTC brand and private-label consumer electronics in North America.
 -0- 10/05/93
 /CONTACT: Peter Verrengia or Cindy Carpenter of Fleishman-Hillard, 212-265-9150, or Sammy Liang of MTC Electronic Technologies, 604-278-8788/

CO: MTC Electronic Technologies Co. Ltd. ST: British Columbia IN: TLS SU: ERN

TW-LG -- NY013 -- 8733 10/05/93 09:23 EDT
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Publication:PR Newswire
Date:Oct 5, 1993

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