VANCOUVER, BC -- (MARKET WIRE) -- 04/11/08 -- JER Envirotech International Corp. (TSX-V: JER) (FRANKFURT: KFTB) is pleased to announce its unaudited financialresults for fiscal Q2 2008.Highlights for the quarter were as follows:
* Record Q2 2008 revenues of $423,859, representing a 702% increase over Q22007 at $52,825 and a 7% increase over Q1 2008 at $396,856.
* Revenues for the six months ended February 29, 2008 were $820,715,representing a 494% increase over the same period in fiscal 2007 at$138,097 and approximately 93% of the revenues for all of fiscal 2007 at$886,888.
* JER partnered with innovative environmental toy company Sprig Toys, Inc.,headquartered in Fort Collins, Colorado. Sprig has established adistribution network that includes two of the largest mass market retailersin North America as well as specialty toy stores throughout North Americaand Europe. Initial product deliveries are scheduled for July 2008. Totalproduction is anticipated to reach 1.5M lbs by the end of calendar 2008.
* Production ramp up continues with Guardian Building Productions. At theend of Q2 2008, JER was delivering approximately six truckloads per month(250,000 lbs) and consumption is expected to reach two truckloads per weekby the second week of May 2008.
* Specialty game piece manufacturer Rolco Inc. of Kasota, Minnesotalaunched a new line of board game pieces composed of JERtech(TM)thermoplastic biocomposite compounds.
* JER became the incumbent supplier of thermoplastic biocomposites forConcor Plastics, a large U.S. moulder of bird feeders sold through massmarket retailers throughout North America. Production is anticipated to beup to one and a half truckloads per month (60,000 lbs) ongoing.
* JER was named a finalist for the "Industry Award for Export Performance"at the 2008 GLOBE Awards, held in Vancouver, British Columbia on March 13,2008.
Summary of Results
Revenues for Q2 2008 (ended February 29, 2008) reached $423,859, up 702%over Q2 2007 at $52,825. These revenues were also up 7% over Q1 2008 at$396,856. For the first half of fiscal 2008, JER's revenues totaled$820,715, which is up 494% over the same period in fiscal 2007 at $138,097and approximately 93% of the revenues for all of fiscal 2007 at $886,888.The increase in sales performance is primarily attributed to the growinguse of the Company's raw biocomposite pellets in the North Americanextrusion and injection molding industries.
Quarter over quarter revenue performance for fiscal 2008, 2007 and 2006 wasas follows:
-***- Q1 Q2 Q3 Q4 Total ------------------------------------------------------------------2006 $ 78,102 $ 151,158 $ 162,435 $ 36,227 $ 427,9222007 $ 85,272 $ 52,825 $ 166,827 $ 581,964 $ 886,8882008 $ 396,856 $ 423,859 - - $ 820,715-****-
To view JER Envirotech International Corp.'s unaudited second quarterfinancial results, please click on the link provided:http://www.usetdas.com/maps/jer/jerenvirotechQ2.pdf
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Management remains confident that JER will reach profitability duringcalendar 2008. To ensure it achieves its performance goals, the Company isdriving all non-essential costs out of its operations and making anyadjustments necessary to ensure it is in a strong financial position giventhe reality of current economic conditions.
Meanwhile, JER continues to perform. It is making excellent progress onacquiring new customers, reaching new markets and developing additionalproducts. "During the month of February, the Company's compoundingproduction lines ran at near capacity and looking ahead into March andApril the sales pipeline continues to grow," states Ed Trueman, JER's CEO."In addition, JER's sheeting production plant in Delta, British Columbia isnow fully operational and the Company expects to ship its largest volume ofsheet products ever during fiscal Q3."
"To reach the profitability stage as quickly as possible, we are investingin our technology, our productivity and the expansion of our sales force,"continues Trueman. "We are also simplifying our operations and focusing onthe significant opportunities available to us in North America."
Resignation of Peter Baran as COO
Effective March 31, 2008, Peter Baran resigned as the Company's ChiefOperating Officer. During his tenure, Mr. Baran was actively engaged inlonger range organizational development and systems implementation for theCompany. Many of his initiatives are now in place and, in support of JER'sefforts to reduce its cash burn rate while aggressively focusing on itssales, margin and profitability objectives, he has elected to step down.JER's CEO, Edward Trueman, has assumed control of the Company's operations.The Board of Directors thanks Mr. Baran for his valuable contributionduring his tenure and wishes him continued success in future endeavors.
About JER Envirotech International Corporation
JER is a global manufacturer of thermoplastic biocomposite compounds andsheeting. The Company's patented technology utilizes waste or by-productmaterials, such as wood fibre or rice hulls, to produce environmentallyfriendly alternative products for applications in the construction,transport and automotive industries. The Company currently has a range ofbiocomposite formulations which it developed in collaboration with theNational Research Council - Industrial Materials Institute of Canada.
JER currently has manufacturing operations in Canada, Malaysia and thePhilippines. The Company is publicly traded on the TSX Venture Exchange(TSX) under the symbol "JER" and on the Frankfurt Stock Exchange under thesymbol "KFTB."
The TSX Venture Exchange does not accept responsibility for the adequacy oraccuracy of this release. This news release contains certainforward-looking statements that reflect the current views and/orexpectations of JER Envirotech International Corp. with respect to itsperformance, business and future events. Investors are cautioned that allforward-looking statements involve risks and uncertainties including,without limitation, those relating to changes in the market, potentialdownturns in economic conditions, foreign exchange fluctuations, demand forthermoplastic biocomposites, competition and our ability to implement ourbusiness plans and strategies in a timely manner or at all. These risks, aswell as others, could cause actual results and events to varysignificantly. JER Envirotech International Corp. does not undertake anyobligations to release publicly any revisions for updating any voluntaryforward-looking statements.
(2008-04 #05)
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For more information, please visit www.jerenvirotech.com or contact:
JER ENVIROTECH INTERNATIONAL CORPORATION
"Ji Yoon"
Mr. Ji Yoon
Chief Financial Officer
International: +1 (604) 940-9262
Email Contact
Investor Relations:
Mr. Mark Komonoski
VP Corporate Communications
Toll-Free: 1-877-255-8483
International: +1 (403) 470-8483
Email Contact