TORONTO, May 26, 2004 (PRIMEZONE) -- Thinkpath Inc. (OTCBB:THTHF) today announced positive financial results for the quarter ended March 31, 2004.
Revenues for the quarter ended March 31, 2004 were $3,056,700 compared to $2,490,288 for the quarter ended March 31, 2003. The increase in revenue is attributable to new contracts with existing automotive, aerospace and defense clients that were awarded in the fourth quarter of 2003.
Gross profit for the quarter ended March 31, 2004 was 33% compared to 29% for the quarter ended March 31, 2003. The increase in gross profit is a result of the focus on higher margin contracts in design, drafting and technical publishing compared to the lower margins earned on traditional on-site engineering support.
For the quarter ended March 31, 2004, the company recorded an operating loss from continuing operations of $29,314 compared to an operating loss of $409,908 for the quarter ended March 31, 2003. Included in the loss is depreciation expense of $142,265 for the quarter ended March 31, 2004 and $192,064 for the quarter ended March 31, 2003.
For the quarter ended March 31, 2004, the company recorded a net loss of $792,230 or (0.00) per share compared to a net loss of $4,655,583 or (0.08) per share for the quarter ended March 31, 2003. Included in the net loss for the quarter ended March 31, 2004 is interest expense of $624,211 related to the beneficial conversion feature on the 12% Senior Secured Convertible Debentures issued in the first quarter pursuant to financing arrangements entered into on December 5, 2002 and March 25, 2004.
At March 31, 2004, the company had a cash flow deficiency from operations of $763,404 largely attributable to the increase in accounts receivable of $321,761 and the decrease in accounts payable of $424,759. At March 31, 2003, the company had cash flow from operations of $251,300.
At March 31, 2004, the company had a working capital deficiency of $1,966,919 and stockholder's equity of $2,763,452 compared to a working capital deficiency of $2,756,405 and stockholder's equity of $2,260,892 at December 31, 2003.
Further information about the company may be found at www.thinkpath.com.
Forward-Looking Statement
This press release contains forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.