Cygnal reports record revenues

Oshawa, Ont. - Equipment distributor and network designer Cygnal Technologies (whose divisions include Comlink and White Radio, among others), recorded record revenue and profit in the third quarter of fiscal 2001, ended September 30, 2001.

Revenues for the third quarter rose 41% to $44.5 million in the quarter, compared with $31.6 million in the third quarter of fiscal 2000. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 61% to $3 million from $1.9 million in the same quarter last year. Earnings per share rose to $0.08 per share from $0.03 per share in the third quarter of fiscal 2000.

For the first nine months of fiscal 2001, revenues rose 59% to $104.4 million compared to the same period in 2000. EBITDA increased 67% to $5.4 million from $3.3 million, and earnings per share rose 37% to $0.11 per share.

"We're delighted to report the strongest quarter for revenues, EBITDA and EPS in Cygnal's history, even in this challenging economy," said Doug Young, Cygnal president and CEO.

As for the rest of the year, Cygnal expects revenues for the fiscal year ending December 31, 2001 to be between $140 million and $150 million and expects earnings per share to be in the range of $0.12 to $0.16 per share. Given current economic conditions, however, the company expects results to be at the lower end of these ranges.

The company has grown dramatically in recent years due to an acquisition binge, however Young said during a conference call with analysts today that organic growth in the third quarter was between 25% and 30% compared to last year. However, that was largely due to the fact a major order was delayed by a customer from the second quarter into the third.

Young added that he envisions about 5% to 10% organic growth going forward.

Cygnal buys Lasertel

OSHAWA, Ont. - Cygnal Technologies last week announced the acquisition of privately-held Lasertel Telecommunications Inc., specialists in the repair and refurbishing of telephony and related equipment. The purchase price was satisfied with cash.

This acquisition expands Cygnal's service offering and is aimed at enhancing its position as a "one stop shop" providing the full spectrum of services to its customers.

Lasertel refurbishes a range of telephony products, including those of Nortel Networks, Avaya, Toshiba and Mitel. Customers include enterprises, government and interconnect companies. The company recorded sales of approximately $1 million for its fiscal year ended June 30, 2001. The entire Lasertel team, including John Taylor, president, will be integrated immediately within Cygnal's communications equipment division.

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