Ceapro Inc. released financial results for the quarter ended March 31, 2012, and provided a corporate update.
FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2012
- Total sales of $1,190,000 compared to $1,534,000 in 2011.
- Income from operations of $17,000 compared to $353,000 in 2011
- Net loss of $4,000 compared to a net income of $330,000 for 2011
"Our sales revenue and profits were lower in the first quarter versus last year and were the result of normal quarterly fluctuations,“ said Gilles Gagnon, acting CEO of Ceapro. "Our results are best measured over the course of the entire year due to timing of orders and because different product mixes with different gross margins can have a big influence on quarterly results. Our operations in the quarter demonstrated solid operational performance while extra expenditures were required for launching a marketing study and to conduct a feasibility study related to manufacturing activities. We have continued to invest in our Company, our solid R&D program, and new technology to ensure Ceapro remains well noticed on the world innovation stage,“ added Mr. Gagnon.
Marketing and sales
- First sales orders received from new customers serviced by Ross Organics in the US Southwest
- New distribution partners in Europe get strong interest in Ceapro products. During the first quarter several new companies have begun formulating with Ceapro products and placing small initial orders. We are very pleased with their rapid acceptance and positive reception as our experience has shown that the sales cycle will often run two years or even longer for new customers.
During the first quarter we launched a strategic marketing review to help determine the best way to increase the distribution and sales of Ceapro products across the globe. A US based company with exposure to the personal care industry was engaged to do a comprehensive review of our company and products, assess the markets, and determine the best strategy to grow. While we have successfully focused most of our limited resources on developing good products and processes as a sound foundation for success, it is now time to invest significantly in building out our marketing and sales network with the appropriate expertise to assist us in that regard. We will also take the opportunity to assess the branding of Ceapro.
- Completion of a major world-wide avenanthramide technology licensing agreement with Agriculture and Agri-Food Canada to allow product expansion to several indications in cosmetics and potential access to new food and nutraceutical markets
- Ongoing discussions with potential distributors in European and Asia Pacific markets