MARKHAM – Supplier, contractor and network solutions company Cygnal Technologies yesterday announced improved financial results for the first quarter of 2006, ended March 31st.
Revenues were $30.5 million, up 4.8% from $29.1 million in the first quarter of 2005. Gross margin was 21.9%, up from 20.1% in the first quarter of the previous year. Selling, general and administrative expenses were $8.6 million, down from $9 million in the first quarter last year. EBITDA was a loss of $2 million, compared to an EBITDA loss of $3.1 million in Q1 2005. Net loss was $3.3 million, or $0.12 per share, compared to a loss of $2.6 million or $0.10 per share in the first quarter of the previous year.
"I am pleased we have begun to show modest revenue and margin growth in what has traditionally been our slowest quarter," said Jos Wintermans, president and CEO, in a release. "Our communications services business has been successful in introducing higher margin product lines into its offering. network operations results were slightly below our expectations, and we have taken steps to ensure we are actively identifying and pursuing the right kinds of opportunities. Our cost structure, particularly SG&A, is improving as we move forward with our turnaround efforts. We expect to see further cost reductions as we continue to seek opportunities to improve our processes."
