August 15, 2007 -- New Century posted revenue of approximately $2.6 million for the quarter ended June 30, 2007, an increase of 13% compared to the approximately $2.3 million for the comparable period of 2006. New Century ended the quarter with approximately $5.3 million of new orders year-to-date, an increase of 60% over orders booked for the same period in 2006. The number of orders in work process remains strong, a trend management believes will continue throughout the year. Traditionally, the second half of the year has generally been the higher revenue producing quarters for New Century, and this year should be no exception. There is a seasonal slow down during the summer months, which transitions to a ramp up as the year closes out. The current increase in backlog and work order flow should lessen the seasonality in quarterly revenues in the future.
Gross profit for the quarter was approximately $711,002, or 27% of revenues, compared to $806,721, or 35% of revenues for the same period the prior year. Operating income for the quarter was approximately $192,616 compared to operating income of $360,379 for the same period in the prior year. The decrease in gross profit is due to the change in product mix for the types of machines in process during the quarter, while the decrease in operating income can be attributed to an increase in consulting related expenses and salary increases. The Company believes that the best measure for gross profit should be evaluated on a yearly basis due to the changes in product mix and their accompanying margins on a quarterly basis.
New Century posted a Net loss for the quarter ended June 30, 2007 of approximately ($497,578) or ($0.04) loss per basic share, compared to net income of approximately $304,393 or $0.02 per diluted share for the same period last year. The second quarter of 2007 had approximately $860,000 in non-cash related expenses related to consulting fees and interest expenses compared to approximately $700,000 of similar expenses for the same period in 2006. The Company believes that approximately $350,000 of these expenses will not be replicated during the third quarter of 2007. Shareholders Equity for the Company improved to $1.54 million or an increase of $1.2 million compared with approximately $335,000 for the same period for the prior year.
Source: Market Wire
Source: Factiva
