Cygnal reports strong revenue growth
8/29/01

Oshawa, Ont. - Cygnal Technologies Corp., which designs, integrates and manages wireless broadband, data and telecommunications networks, reported a 44 per cent increase in revenue but a drop in its net profit for the second quarter.

Cygnal, based in Oshawa east of Toronto, said it made more than $251,000, or two cents per share, in the three-month period ended June 30 on revenues of $28.3 million. That compares with net earnings of more than $340,000 or three cents a share on revenues of $19.6 million in last year's second quarter.

"We continue to be delighted with our revenue growth," Cygnal president Doug Young said in a statement.

"To further improve our profitability we undertook earlier this year an examination of operational synergies. We are currently reviewing a number of recommendations which will be instituted over the next year."

Among its second-quarter highlights, Cygnal was awarded a $1.2-million contract to build a wireless network for Upper Canada Networks, which offers community-based networks for government, healthcare, education, agriculture, tourism and business in eastern Ontario.

Cygnal also completed its acquisition of Calgary-based West Technical Technologies Inc., which specializes in the design and installation of telecom networks in Alberta. Cygnal said West Technical will help increase Cygnal's presence in Western Canada.

Also, SCBN Telecommunications Inc. awarded Cygnal a $12-million contract to build a high-speed broadband network in Simcoe County, also in Ontario.


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