NEWSCENTER
PRESS RELEASE:
POWER TECH CORPORATION
INC.
POWERTECH DISCLOSES FIRST QUARTER 2006 RESULTS
The Company records first revenues and
pursues implementation of its commercialization strategy
Blainville (Quebec), February
28, 2006 – PowerTech Corporation Inc. “PowerTech” (TSX-V:
PWB) today disclosed its financial results for its first
quarter of 2006 ended December 31, 2005.
During this quarter, the Company recorded
revenues of $99,960 from
the first sale of PicBucket units to the Aecon Group, a giant
in the Canadian construction sector. These sales were made
as part of the V.I.PIC commercialization program that offers
buyers the possibility of purchasing PowerTech’s products
at preferred pricing. Furthermore, PowerTech recorded interest
income on short-term investments of $9,562.
PowerTech’s net loss was $393,707 or $0.01 per
share on a diluted basis, compared to a net loss of $225,541 or
$0.01 per share for the same period last year. The increase
in the loss is mainly explained by higher investments made
by the Company to support its commercialization efforts. Sales
and marketing expenses were $140,547 during the last quarter,
whereas they were $51,364 for the same period in 2004.
The Company’s administration fees amounted to $201,790 for
the last quarter, compared to $147,636 for the same period
one year earlier. One area in particular, remuneration expense
of $38,473 linked to the Company’s stock option
purchase plan, accounts for the majority of this increase.
Furthermore, with respect to short-term
assets, cash held by the Company amounted to $1,096,396 as at December 31,
2005, compared to $1,376,376 as at September 30, 2005.
The decrease in cash is attributable to investments made by
the Company for its commercialization activities. PowerTech’s
assets totalled $2.3 million as at December 31, 2005, compared
to $2.5 million three months earlier. Furthermore, with
respect to liabilities, as at last December 31, accounts payable
and accrued expenses were $152,362, whereas the long-term debt
was $44,598.
Several promising projects
underway
In recent months, the Company has rolled out multiple initiatives
as it implements its commercialization strategy. As part of
this strategy, PowerTech will soon be moving to a new facility
to increase production capacity. After this move, PowerTech
will be able to meet the anticipated demand of its distributors,
meet delivery schedules and ensure the availability of replacement
parts. This new 23,000 square foot plant is located in the
Haut Terrebonne industrial park.
As well, last February the Company hired Yves Sicotte to the
position of vice-president, sales and marketing. The arrival
of Mr. Sicotte will enable PowerTech to accelerate the establishment
of its North American distribution network. The Company intends
to form agreements with large Canadian and U.S. distributors
specialized in construction and demolition machinery. Internationally,
PowerTech is aiming to partner with large heavy equipment distributors
with thorough knowledge of their markets.
The V.I.PIC program: a sale
to Roxboro Excavation
Meanwhile, the V.I.PIC program is continuing
to reap success with participating entrepreneurs. In addition,
last February the Company announced the sale of another PicBucket
unit to Roxboro Excavation, a Dorval-based company. “Close to
40 entrepreneurs and potential clients have accepted to take
part in the V.I.PIC program with a view to eventually purchasing
our technology. Of this number, many have already undertaken
trials of the PicBucket at their work sites. We are confident
that other companies will soon purchase our product as did
Roxboro – a renowned entrepreneur in Quebec,” said
Mr. Carol Murray, president and CEO of PowerTech.
Parallel to these commercialization efforts, PowerTech is
presently pursuing the development of two new product lines.
The new Series 1000 percussion buckets have now begun pre-commercialization
testing. This product is aimed at the fast-growing mini-excavator
market. The Company has also started development of the Series
2000 DHU, a percussion bucket that contains two hydraulic cells.
The Series 2000, which is already in commercialization, contains
one hydraulic cell.
“In recent months, PowerTech has brought together all
the key ingredients required to pursue its development plan.
We are optimistic that these various initiatives will help
us to achieve our targeted goals, particularly with respect
to sales growth and the establishment of new strategic partnership
agreements,” concluded Mr. Murray.
Forward-looking statement
This document may contain forward-looking
statements that reflect management’s expectations with respect to future
events. Such forward-looking statements are dependent upon
a certain number of factors and are subject to risks and uncertainties.
Actual results may differ from those expected. The Company’s
management does not assume any obligation to update or revise
these forward-looking statements as a result of new information
or future events.
About PowerTech (www.powertechci.com)
PowerTech is the only company in the world
that manufactures and commercializes a percussion bucket
for the construction, demolition, aluminum, mining, tunnel
digging, forestry and military industries. PowerTech’s
percussion bucket, commercialized under the PicBucket and
PicHammer brand names, is a technological breakthrough that
combines the power of a hydraulic hammer with the stripping
force and maneuverability of a conventional bucket.
PowerTech intends to position itself as a leader in the development,
integration and commercialization of leading edge technologies
that allow for substantial improvements in the performance,
productivity and functionality of demolition and excavation
equipment.
* The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuray of this press release
-30-
Source:
Power Tech Corporation Inc.
www.powertechci.com
For further information:
Mr. Carol Murray
President and Chief Executive Officer
Power Tech Corporation Inc.
Tel.: (450) 419-5400
Fax: (450) 419-5411
carol.murray@powertechci.com
Frédéric Tremblay
HKDP
Tel.: (514) 395-0375, ext. 234
ftremblay@hkdp.qc.ca
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