Coreco Reports First Quarter Results: Continued Profitability and Investment

„Coreco Reports First Quarter Results: Continued Profitability and Investment in New Products\r\n
\r\nMONTREAL, QUEBEC–Coreco Inc. today reported revenue for the first quarter ended March 31, 2002 of $4,837,358, an increase of 2% on a sequential basis from $4,739,352 in the fourth quarter of 2001 and a decrease of 36% from $7,583,598 reported in the first quarter of 2001. (All dollar amounts expressed in US currency) \r\n
\r\n\r\n
\r\nThe Company had net earnings of $163,573, or $0.02 per share, versus a net loss of $725,074, or $0.10 per share, in the same quarter last year. In accordance with new CICA accounting recommendations, goodwill has not been amortized for the first quarter ended March 31, 2002. Goodwill amortization represented $1,458,004 in the same period last year. Excluding the effect of the new accounting recommendations, net earnings from operations in this quarter amounted to $163,573, or $0.02 per share, compared with $715,887, or $0.10 per share, in the same quarter of 2001. \r\n
\r\n“;“The Company continues to report a strong balance sheet. Cash increased 4% over the previous quarter to $3,621,902, while long-term debt decreased 11% to $2,812,500. Working capital amounted to $9,053,013, representing a ratio of 2.84:1 at the end of this quarter. \r\n
\r\n\r\n
\r\nIn the first quarter of 2002, the Company was awarded 9 design-wins, including 5 for machine vision applications and 3 from defense customers. Sales of new products continued to accelerate, accounting for 58% of total sales compared with 51% a year ago. At March 31st, 2002, sales to Asia, Europe and the U.S. accounted for 16%, 26% and 50% of total sales, respectively. \r\n
\r\n\r\n
\r\n\“I am pleased with our results in the first quarter,\“ commented CEO Keith Reuben. \“Our revenues show a sequential increase and our profitability continues, even as we invest heavily in new end-user products such as the smart camera. Moreover, with the greater sales activity we have experienced in the first quarter and the new orders from our OEM semiconductor customers, we are optimistic that the worst of the downturn is now behind us.\“ \r\n
\r\n\r\n
\r\nR&D expenses were $961,982 in the first quarter as Coreco continued to invest in new products that target its existing OEM markets as well as its new high-growth end- user markets. During the second quarter, a new digital product will be launched to address the high data rates required by the semiconductor markets. In addition, the Intelligent Products Division (IPD) will launch its first smart camera product for the end-user market, which represents a strategic milestone for the Company. \r\n
\r\n\r\n
\r\nOutlook \r\n
\r\n\r\n
\r\n\“As we look forward to the second half of the year, we remain optimistic that the semiconductor capital equipment market is poised for recovery,\“ concluded Mr. Reuben. \“When that occurs, we will be strongly positioned with our lower cost structure, established customer base, new design-wins and our new products to generate higher growth and profitability for our shareholders.\“ \r\n
\r\n\r\n
\r\nWebcast \r\n
\r\n\r\n
\r\nThe Company’s first quarter conference call will be webcast on q1234.com at 10 a.m. EST on Tuesday, April 30, 2002. \r\n
\r\n\r\n
\r\nCoreco Inc. is a leader in the design, development, manufacturing and marketing of hardware and software for high-performance computer vision applications, primarily in the medical imaging, machine vision and industrial inspection markets. The Company employs approximately 135 people and has operations in Montreal (QC), Vancouver (BC) and Boston (MA), with additional sales offices in Cleveland (OH) and San Juan Capistrano (CA). Founded in 1979, Coreco’s success is driven by sound financial management combined with its commitment to the research and development of value-added products to serve the evolving needs of the computer vision market. \r\n
\r\n\r\n
\r\nThis press release contains statements that are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The Company has no intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.\r\n
\r\nContact:\r\n
\r\n\r\n
\r\nCoreco Inc.\r\n
\r\nKeith A. Reuben\r\n
\r\nPresident and Chief Executive Officer\r\n
\r\nPhone: (514) 333-1301\r\n
\r\nFax: (514) 333-1867\r\n
\r\nhttp://www.coreco.com\r\n
\r\nor\r\n
\r\nCoreco Inc.\r\n
\r\nGrace Pollock\r\n
\r\nInvestor and Media Relations\r\n
\r\nPhone: (514) 940-3717\r\n
\r\ninvestors@coreco.com“;0;22;3;“Webmaster“;““;0;““;0;0;0;0;0