Cirmaker Technology (PK) (USOTC:CRKT)
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Cirmaker Technology Reports First Quarter 2004 Financial Results
Revenue Rises 4.9% from the Same Quarter a Year Ago
NEW YORK, May 20 /PRNewswire-FirstCall/ -- Cirmaker Technology Corp.
(BULLETIN BOARD: CRKT.OB) , which manufactures set top boxes for digital TV
signal reception, CPU coolers for computers and electronics components, today
announced results for the first quarter, ended March 31, 2004.
Revenue for the period rose 4.9% to $3.92 million from $3.74 million the same
quarter a year ago. Gross profit was $373,626 versus $519,808 in the first
quarter of 2003. The Company explained that a spurt in the price of copper,
the critical material in its heat dispersal systems for laptop, PC and computer
servers was responsible for the difference in earnings. The worldwide demand
for copper increased in the first quarter as a result of economic activity.
Copper prices have declined somewhat since the end of the quarter, the Company
reported.
President Bill Liao of Cirmaker Technology, said, "We have made progress in
sales of computer cooling systems, which is only partially reflected in first
quarter sales. Orders have been in-line with our expectations. Shipments of
these orders, however, were delayed to the second quarter because of the
Chinese New Year holiday, which fell earlier than usual. As a consequence of
the plant closing for the holiday, some shipments were delayed to April. The
second and third quarters are key in computer manufacturing and heat dispersal
sales are ahead of last year."
The net loss in the first quarter was $437,624 versus the net profit of
$113,455 in the same quarter of last year. Corporate expenditures grew as a
result of increased marketing general and administrative expenditures to launch
marketing of set top boxes and to improve the manufacturing facility to produce
them.
As of March 31, 2004, the Company had $223,275 in cash and cash equivalents on
the balance sheet, up 24.9% from the $178,808 in cash holdings a year ago. In
addition, the Company had $653,240 in restricted cash, which is cash held in
reserve to meet debt covenants.
Cirmaker Technology believes that its cooling system units for laptop and
personal computers are superior in several respects to other products on the
market. First, they are developed in partnership with the client so that they
meet each client's particular specifications. Second, Cirmaker Technology's
expertise in making cooling fin assemblies, a critical component of cooling
units, results in smaller (about half the size of typical assemblies), higher
quality (due to a patented design and manufacturing method), lower cost (20%
less than typical competitors) and more efficient cooling products. Cirmaker
Technology fin assemblies cut cooling fan power requirements by two-thirds, a
key factor in reducing laptop battery drain. Cirmaker Technology believes that
major suppliers to the laptop computer industry are sourcing Cirmaker
Technology cooling systems after determining that they have the lowest defect
rates of any competitive manufacturer.
About Cirmaker Technology Corporation
Cirmaker Technology manufactures cooling systems for laptop and personal
computers, a variety of electronic components and digital set top boxes for
television sets. Headquartered in Taiwan with an office in New York City,
Cirmaker has developed digital television set top boxes that can convert analog
television broadcast signals into digital formats so that analog TV sets can
receive digital programming. Cirmaker believes it is the only manufacturer
operating in China that can produce in volume a device that meets all the
required standards of Chinese broadcasting authorities. It is also poised to
distribute its system worldwide as it complies with all international HDTV
standards for high definition television. The system receives, processes,
stores and broadcasts analog, digital and streaming media signals, and it
supports pay-per-view as well as video-on-demand channel signals.
Forward-Looking Statements
The matters discussed in this news release contain forward-looking statements,
including statements regarding projected increases in sales and profitability.
These statements are subject to various risks, uncertainties and other factors
that could cause actual results to vary materially from the results anticipated
in such forward-looking statements. Such risks, uncertainties and other
factors include Cirmaker's potential inability to raise additional capital, its
potential inability to compete with other companies that may be more
experienced and better capitalized than Cirmaker, changes in domestic and
foreign laws, regulations and taxes, changes in economic conditions,
uncertainties related to the legal systems in Cirmaker's target markets,
including, China's legal system and economic, political and social events in
China and other target markets, foreign relations between Taiwan, China and
Cirmaker's other potential target markets, a general economic downturn, a
downturn in the securities markets, Securities and Exchange Commission
regulations which affect trading in the securities of "penny stocks," and other
risks and uncertainties detailed from time to time in Cirmaker's filings with
the Securities and Exchange Commission. These forward-looking statements
represent management's judgment as of the date of this release. Cirmaker
disclaims any intent or obligation to update these forward-looking statements.
For more information, please contact:
Cirmaker Technology Corporation Stern & Co.
Charles R. Skeele Truc N. Nguyen
General Manager - US VP, Investor Relations
Telephone: 917-639-4098 Telephone: 212-888-0044
Email: Email:
DATASOURCE: Cirmaker Technology Corp.
CONTACT: Charles R. Skeele, General Manager - US of Cirmaker Technology
Corporation, +1-917-639-4098, or ; or Truc N. Nguyen,
VP, Investor Relations of Stern & Co., +1-212-888-0044, or
, for Cirmaker Technology Corp.