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| CNLG > SEC Filings for CNLG > Form 10-Q on 19-Jun-2009 | All Recent SEC Filings |
19-Jun-2009
Quarterly Report
FOR THE THREE AND NINE MONTHS ENDED April 30, 2009
Product revenues for the nine months ended April 30, 2009 totaled $1,239,560 representing an increase of 40% from the $884,035 reported for the same nine month period last year. The Company attributes this nine month increased to more timely order releases from utilities.
Product revenues for the three months ended April 30, 2009 totaled $293,920, representing a decrease of 19% from $361,308 for the same three month period last year.
Product Cost (Material and Direct Labor) for the three months ended April 30,
2009 and 2008 totaled $78,159 and $55,263 respectively. Product Cost (Material
and Direct Labor) for the nine months ended April 30, 2009 and 2008 totaled
$312,522 (25% of Product revenues) and $251,865 (28% of Product revenues
[excluding $100,000 inventory write down])
Gross Profit for the nine months ended April 30, 2009 and 2008 amounted to $927,038 or 75% and $532,170 or 40% respectively, the increase is a direct result of the increase in sales deliveries as of April 30, 2009.
Selling, general and administrative expenses for the nine months ended April 30, 2009 amounted to $2,285,610, a reduction of $810,095 from the same period last year. Selling, general and administrative expenses for the three months ended April 30, 2009 amounted to $1,152,063, an increase of $245,349 for the same period last year. The Company attributes this increase to legal fees and development costs for new products.
Non-cash non-operating expenses for the nine-month period totaled $721,685 and included expenses related to the induced conversion cost of $347,982; $112,399 for amortization of deferred debenture discount and $261,304 for amortization of deferred debenture costs.
As a result of the foregoing, the Company reported a net loss from operations of ($1,786,985) or ($2.46) per share compared to a loss of ($5,018,894) or ($4.81)* per share for the nine months ended April 30, 2009 and 2008, respectively.
*Represents retroactive application of 1:5 reverse stock split
LIQUIDITY AND FINANCIAL CONDITION
Inventories from the Company's product segment increased from $850,507 at July 31, 2008 to $1,191,706 for the nine months ended April 30, 2009, an increase of $341,199. This additional inventory is required to satisfy the Company's current backlog of over $300,000 in purchase orders and expected orders of $500,000 for the remainder of calendar year 2009. There can be no assurance that the Company will receive the orders that it expects to receive.
Accounts Receivable-trade decreased to $241,653 for the nine months ended April 30, 2009 from $360,846 as of July 31, 2008.
The Company expects to meet its cash requirements for the next 12 months through existing cash balances.
STATEMENT REGARDING PRESENT OPERATIONS
There were no material changes in the nature of the operations of the Registrant during the nine months ended April 30, 2009. Detailed information is contained in the Registrant's annual report on Form 10-K for the fiscal year ended July 31, 2008.
FORWARD LOOKING STATEMENTS
This quarterly report contains certain "forward-looking statements" within the meaning of Section 27A of The Securities Act of 1933, as amended and section 21E of The Securities Act of 1934, as amended. Such Statements are subject to certain risks and uncertainties, including, among other things, significant variations in recognizing revenue due to customer-caused delays, and intense competition from more well known companies, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above, among other factors, could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically declines any obligations, to publicly release the results of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events.
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