New contracts & Q3 estimates|
Omni-Lite Industries Canada Inc.
October 7, 2002
Omni-Lite Industries Canada's automotive division has received final production approval for two transmission components by BorgWarner Air/Fluid systems. "This is a tremendous milestone for Omni-Lite. Not only do the components meet the design specifications, the quality system overseeing the processes must meet QS9000 and BorgWarner's H2000 requirements," stated David F. Grant, president and chief executive officer. "Lots of hard work and commitment were given by Omni-Lite's production, quality and development personnel to make this project successful in such a short period, and I commend them for their efforts."
Omni-Lite Industries Canada has received contracts for three additional components from Monogram Aerospace Fasteners, bringing the total number of contracts to 12. "The new contracts reflect the quality and service that Omni-Lite delivers to its customers," stated Mr. Grant. "The new contracts result from Omni-Lite's ability to solve difficult manufacturing challenges in a cost-effective manner."
Revenue for third quarter is expected to be $650,000 (U.S.) or approximately $1,026,025 (Canadian). Revenue nine months ended are expected to be $1.73-million (U.S.) or $2.73-million (Canadian). "Sales have not grown at the rate we targeted for in January, 2002. However, Omni-Lite has managed to weather bad economic conditions and has been in the process of building the company with respect to sales, equipment, quality systems and people. We expect growth to continue in 2003," stated Mr. Grant.
The company's recent decision to adopt a more conservative approach to the
amortization period for deferred development costs will decrease earnings
by approximately 0.66 U.S. cent or one Canadian cent each quarter until the
end of 2004. This reduction in earnings is a non-cash item which does not
affect the corporation's cash position.
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