May 1, 2006
15:24 EDT Monday, May 01, 2006
FSC / Press Release
SEAIR REPORTS CONTINUED REVENUE GROWTH FOR QUARTER ENDING
FEBRUARY 28, 2006
Edmonton, Alberta CANADA, May 01, 2006 /FSC/ - Seair Inc. (SDS - TSX Venture),
announces the release of its unaudited interim financial statements for the 3 months
ending February 28, 2006.
Seair's consolidated sales and financial performance is summarized as follows:
| Quarter Ending | 6 Months Ending | |||||
| 28-Feb-06 | 28-Feb-05 | Change | 28-Feb-06 | 28-Feb-05 | Change | |
| Revenue | $128,083 | $46,085 | 178% | $219,762 | $67,432 | 226% |
| Gross Profit | $57,863 | $10,348 | 459% | $131,135 | $13,740 | 854% |
| Net Loss | (43,830) | (127,643) | -66% | (31,946) | (279,370) | -89% |
| Basic Loss per share | (0.00) | (0.01) | (0.00) | (0.02) | ||
Harold Kinasewich, Seair President and CEO, notes "I'm delighted to report revenue and
gross profit growth again this quarter. In addition, our continued cost controls ensure that
revenue and gross profit improvement bring Seair closer to consistent profitability."
Second quarter revenue of $128,083 was 178% higher than the corresponding quarter in
fiscal 2005. During the past year Seair has invested considerable time and resources in
building a partner network with sales representatives in a variety of end-use industries.
Recent revenue growth is attributable to initial successes from these relationships. For
much of fiscal 2004 Seair employed a business model emphasizing direct sales to end
customers. Nevertheless, the ongoing pace of progress with these partners, and end-
customers, is largely beyond Seair's control. While continued successes are anticipated,
particularly since Seair intends to keep growing the partner network, quarter-to-quarter
sales results may vary considerably until critical mass and initial market penetration is
achieved. It is critical that Seair continue to emphasize resource preservation during these
periods of fluctuating results.
Sequentially, revenue increased $36,404, or 40%, from the quarter ending November 30,
2005.
Seair, through the pending acquisition of assets and contracts from Terroza
Environmental Corp., expects to have direct control over sales initiatives in the Western
Canadian oilfield sewage and wastewater treatment industry. Should this acquisition, for
which a Letter of Intent was signed in January 2006, close as anticipated, Seair will
directly market a portable treatment system in conjunction with the fall 2006 drilling
season.
Seair's other target markets include animal enhancement and golf course irrigation, pond
water remediation and soil treatment. Considerable investment in industry specific
independent testing and results verification is required to gain credibility and acceptance
in the target industries. Seair continues to make those testing investments in its target
markets. The Company now has independent representatives in each of these target
industries.
Seair's gross profit of $57,863 for the quarter ending February 28, 2006 was a 459%
increase over the same quarter in fiscal 2005. This increase is attributable to overall gains
in sales as well as an increase in the gross profit percentage from 22% of revenue to 45%
of revenue. Going forward the gross margin percentage may vary depending upon the
ratio of direct sales to sales via resellers. Direct sales gross margin percentages are higher
than margins realized on reseller arrangements. However, in both cases the gross margins
should significantly exceed the fiscal 2005 percentage.
Operating expenditures totaled $101,693 for the quarter ending February 28, 2006 versus
$137,991 for the quarter ending February 28, 2005. This $36,298, or 26%, decline is
primarily a result of reduced personnel costs. Current staffing levels are below those
existing for much of fiscal 2005. In addition, travel, office and automotive costs are down
as Seair focuses its efforts on developing the reseller network to address distant markets.
Professional fees are up from the equivalent quarter in fiscal 2005 as a result of the
timing of costs associated with Seair's public share listing. On a six month basis
professional fees are not significantly different from fiscal 2005 to fiscal 2006. In
addition, the Company's Calgary office has been closed to reduce costs.
The $43,830 net loss for the quarter ending February 28, 2006 is an $83,813
improvement over the loss for the quarter ending February 28, 2005 (or 66% better than
the prior year). As noted the improvement stems from revenue and gross margin
increases as well as continued reductions to operating expenses.
Further details with respect to SEAIR's second quarter results, including the complete
financial statements, will be available at www.sedar.com.
About SEAIR
SEAIR is a leading developer of proprietary diffusion and sterilization technologies.
These patent-pending technologies allow for the efficient diffusion of gases into a liquid,
thereby facilitating numerous applications in a wide variety of industries, including waste
water treatment, pulp and paper, food processing, aquaculture, agriculture/horticulture,
sterilization, golf course irrigation and pond treatment, animal enhancement and oil and
gas. SEAIR's primary focus is developing and selling equipment that diffuses gases, such
as oxygen, ozone or carbon dioxide, into a liquid, resulting in a supersaturate solution.
The major difference between SEAIR and other diffusion technologies is SEAIR's ability
to achieve extremely small bubble size, which in turn allows for the mass transfer of gas
to fluid. The result is a stable condition where gases remain in solution for extended
periods of time, leading to increased productivity and lower operating costs.
Parties interested in obtaining further information or receiving news releases and
corporate documents from SEAIR may e-mail such request to seair@telus.net visit our
SEAIR web site at: www.seair.ca .
FOR FURTHER INFORMATION PLEASE CONTACT:
Harold Kinasewich
SEAIR Inc.
T: 780 477 7188
F: 780 477 6622
E: seair@telus.net
SEAIR Inc.
9554 Yellowhead Trail
Edmonton, Alberta
T5G 0W4
This news release may contain certain forward-looking statements that reflect the current
views and/or expectations of SEAIR INC. with respect to its performance, business and
future events. Such statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
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