Thursday, 4 February 2010

Stronger Canadian Dollar Impacts International Water-Guard

International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million
Fully Diluted: 46.5 million

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The company today reported its Q1/F2010 results with revenues falling to $1.036 million from $1.214 million in the first quarter of F2009. First quarter net earnings were slightly more than $15 thousand compared to approximately $60 thousand in the same quarter a year ago.

The below was taken from IWG's MD & A:

"While the Company’s equipment sales were similar to the previous year, the lower value of the U.S. dollar impacted Canadian dollar revenue. The decrease in value of the U.S. dollar also impacted margin rates and reported earnings. Planned cost reductions plus finalization of product development projects have served to partially offset the impact of the lower U.S. dollar to maintain profitability".

The company cut its selling expenses by 26% to $93 thousand and Engineering and product development also fell 31% to $143 thousand.

Of note, IWG's working capital position increased slightly to $2.27 million, which is interesting considering the current market capitalization is $2.75 million.

To read the news release click here.