TORONTO, May 26, 2004 (PRIMEZONE via COMTEX) -- Thinkpath Inc. (OTCBB: THTHF)
today announced positive financial results for the quarter ended March 31, 2004.
Revenues for the quarter ended March 31, 2004 were $3,056,700 compared to
$2,490,288 for the quarter ended March 31, 2003. The increase in revenue is
attributable to new contracts with existing automotive, aerospace and defense
clients that were awarded in the fourth quarter of 2003.
Gross profit for the quarter ended March 31, 2004 was 33% compared to 29% for
the quarter ended March 31, 2003. The increase in gross profit is a result of
the focus on higher margin contracts in design, drafting and technical
publishing compared to the lower margins earned on traditional on-site
engineering support.
For the quarter ended March 31, 2004, the company recorded an operating loss
from continuing operations of $29,314 compared to an operating loss of $409,908
for the quarter ended March 31, 2003. Included in the loss is depreciation
expense of $142,265 for the quarter ended March 31, 2004 and $192,064 for the
quarter ended March 31, 2003.
For the quarter ended March 31, 2004, the company recorded a net loss of
$792,230 or (0.00) per share compared to a net loss of $4,655,583 or (0.08) per
share for the quarter ended March 31, 2003. Included in the net loss for the
quarter ended March 31, 2004 is interest expense of $624,211 related to the
beneficial conversion feature on the 12% Senior Secured Convertible Debentures
issued in the first quarter pursuant to financing arrangements entered into on
December 5, 2002 and March 25, 2004.
At March 31, 2004, the company had a cash flow deficiency from operations of
$763,404 largely attributable to the increase in accounts receivable of $321,761
and the decrease in accounts payable of $424,759. At March 31, 2003, the company
had cash flow from operations of $251,300.
At March 31, 2004, the company had a working capital deficiency of $1,966,919
and stockholder's equity of $2,763,452 compared to a working capital deficiency
of $2,756,405 and stockholder's equity of $2,260,892 at December 31, 2003.
Further information about the company may be found at www.thinkpath.com.
Forward-Looking Statement
This press release contains forward-looking statements regarding Thinkpath Inc.,
its business prospects and results of operations that are subject to certain
risks and uncertainties posed by many factors and events that could cause
Thinkpath's actual business, prospects and results of operations to differ
materially from those that may be anticipated by such forward-looking
statements. Readers are urged to carefully review and consider the various
disclosures made by Thinkpath in this news release and other reports filed with
the Securities and Exchange Commission that attempt to advise interested parties
of the risks and factors that may affect Thinkpath's business.
SOURCE: Thinkpath Inc.
By Staff
CONTACT: For More Information and Investor Relations
Please Contact:
Tracy McKay
Thinkpath Inc.
Tel: (905) 460-3040
Email: communications@thinkpath.com
(C) 2004 PRIMEZONE, All rights reserved.
INDUSTRY KEYWORD: Business Services
SUBJECT CODE: EARNINGS
Earnings Releases and Operating Results
today announced positive financial results for the quarter ended March 31, 2004.
Revenues for the quarter ended March 31, 2004 were $3,056,700 compared to
$2,490,288 for the quarter ended March 31, 2003. The increase in revenue is
attributable to new contracts with existing automotive, aerospace and defense
clients that were awarded in the fourth quarter of 2003.
Gross profit for the quarter ended March 31, 2004 was 33% compared to 29% for
the quarter ended March 31, 2003. The increase in gross profit is a result of
the focus on higher margin contracts in design, drafting and technical
publishing compared to the lower margins earned on traditional on-site
engineering support.
For the quarter ended March 31, 2004, the company recorded an operating loss
from continuing operations of $29,314 compared to an operating loss of $409,908
for the quarter ended March 31, 2003. Included in the loss is depreciation
expense of $142,265 for the quarter ended March 31, 2004 and $192,064 for the
quarter ended March 31, 2003.
For the quarter ended March 31, 2004, the company recorded a net loss of
$792,230 or (0.00) per share compared to a net loss of $4,655,583 or (0.08) per
share for the quarter ended March 31, 2003. Included in the net loss for the
quarter ended March 31, 2004 is interest expense of $624,211 related to the
beneficial conversion feature on the 12% Senior Secured Convertible Debentures
issued in the first quarter pursuant to financing arrangements entered into on
December 5, 2002 and March 25, 2004.
At March 31, 2004, the company had a cash flow deficiency from operations of
$763,404 largely attributable to the increase in accounts receivable of $321,761
and the decrease in accounts payable of $424,759. At March 31, 2003, the company
had cash flow from operations of $251,300.
At March 31, 2004, the company had a working capital deficiency of $1,966,919
and stockholder's equity of $2,763,452 compared to a working capital deficiency
of $2,756,405 and stockholder's equity of $2,260,892 at December 31, 2003.
Further information about the company may be found at www.thinkpath.com.
Forward-Looking Statement
This press release contains forward-looking statements regarding Thinkpath Inc.,
its business prospects and results of operations that are subject to certain
risks and uncertainties posed by many factors and events that could cause
Thinkpath's actual business, prospects and results of operations to differ
materially from those that may be anticipated by such forward-looking
statements. Readers are urged to carefully review and consider the various
disclosures made by Thinkpath in this news release and other reports filed with
the Securities and Exchange Commission that attempt to advise interested parties
of the risks and factors that may affect Thinkpath's business.
SOURCE: Thinkpath Inc.
By Staff
CONTACT: For More Information and Investor Relations
Please Contact:
Tracy McKay
Thinkpath Inc.
Tel: (905) 460-3040
Email: communications@thinkpath.com
(C) 2004 PRIMEZONE, All rights reserved.
INDUSTRY KEYWORD: Business Services
SUBJECT CODE: EARNINGS
Earnings Releases and Operating Results
