16 May 2014
Avcorp Industries Inc. (TSX: AVP) said its revenue for the quarter ended March 31, 2014 was USD17,551,000 as compared to USD19,946,000 for the quarter ended March 31, 2013.
Current quarter revenues have decreased relative to same quarter in the previous year primarily as a result of reductions in customer demand due to concerted efforts in inventory reduction and a slowdown in production rates.
Comtek Advanced Structures Ltd. (Comtek), a wholly owned subsidiary of Avcorp, generated an 89 percent increase in the delivered quantity of aircraft composite floor boards to original equipment manufacturers (OEM). Additionally, Comtek´s repositioning and introduction of new products has produced a 41 percent increase in composite floor board sales to airlines.
Aircraft component repairs serviced by Comtek have increased revenues by 9 percent, as customer loyalty programs commence having a positive impact on sales.
During the quarter ended March 31, 2014, the company recorded a loss from operations of USD1,397,000 on USD17,551,000 revenue, as compared to USD440,000 operating income on USD19,946,000 revenue for the same quarter in the preceding year; and a net loss for the current quarter of USD1,242,000 as compared to net income of USD108,000 for the quarter ended March 31, 2013. A USD376,000 restructuring provision, as well as USD1,191,000 expensed as unutilized plant capacity have significantly impacted income for the current quarter.
Avcorp designs and builds major airframe structures for some of the world´s leading aircraft companies, including BAE Systems, Boeing, and Bombardier.