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ACE/Security Laminates(TM) Corporation "ACE Announces Second Quarter Results"

Published on 2004-09-07. Author : SpecialChem

OTTAWA, ONTARIO -- ACE (Advanced Coatings Engineering) Security Laminates(TM) Corporation (the "Corporation" "ACE") is pleased to announce its results for the period ended June 30, 2004. ACE completed its reverse takeover as well as its initial public offering on May 26, 2004. Therefore, these financial statements include the results of the Corporation and its two subsidiaries.

The results for this quarter are showing a good improvement on the sales level after the first quarter of the year. Total revenues for the quarter ended in June 2004 are more than double what they were in the first quarter. Revenues for the first six months of the year are at almost two million dollars and are comparable to the same period in 2003. However, the sales mix is better with a solid growth in our direct sales market, which market has the highest growth potential.

There were fewer dealerships acquired during the quarter, compared to the same period in 2003. The reduction in dealership sales revenue had a corresponding impact on profitability and cash flow for the quarter since fewer direct costs are incurred to conclude such transactions compared to product sales. For budgetary reasons, the Corporation had to restrict its advertising expenditures before the closing of its reverse takeover transaction and that resulted in a drop regarding the level of interest from potential new dealers. Management is confident that its renewed advertising efforts that began in June will allow the Corporation to gain most of the lost ground later in the year.

The overall costs have increased in 2004 compared to 2003, largely due to the going public process and associated costs of being a public corporation. In order to grow, the Corporation has hired more people with better qualifications since the fall of 2003 and has committed funds to marketing and advertising in our core geographical markets. Important expenses relating to professional fees, traveling and interim financing were also recorded as part of the going public process, however, these costs are non-recurring. Management expects that the current marketing strategy will bring results within a 6 to 12 month period, as its industry requires substantial investments in awareness campaigns.

The Corporation's capital liquidity obtained from the public offering was used to market and promote ACE and the products but also in part to absorb the operating costs of the first two quarters. The funds obtained thus far will continue to be used to actively implement the Corporation's marketing plan about its presence in the marketplace, acknowledging the continuous growth in the demand for security products around the world. The Corporation has elaborated its strategies and constituted a qualified list of purchasers and potential strategic partners which should push forward the results for the Corporation's newly established year end, that of September 30, 2005.

Following the well-received public demonstration held by ACE on July 21st, 2004 where 182 government and private security industry professionals, architects and property managers were in attendance, ACE will be holding another public demonstration scheduled for September 22nd, 2004 in Toronto, Ontario. This will provide ACE with added awareness within its most important Canadian market.

ACE/Security Laminates(TM) Corporation specializes in manufacturing and distributing, through a worldwide network of dealers, safety and security window laminating technology. Since 1999, ACE has established a presence in 40 countries.

ACE/Security Laminates(TM) Corporation produces a micro thin polyester laminate that, when applied to glass, protects against baseball bats, crowbars, rocks, fire, molotov cocktails, bombs, bullets and natural disasters.

ACE/Security Laminates(TM) Corporation's high-end security laminates are Government Services Administration (GSA) approved.

Source: ACE/Security Laminates(TM) Corporation


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