MONTREAL, Aug. 30, 2006 (PRIMEZONE) -- ADSERO Corp. ("ADSERO") (OTCBB:ADSO), a North American printer cartridge re-manufacturer, today provides an update of its business and a review of its second quarter results.
"The category of remanufactured imaging supplies is under intense price pressure, coupled with higher labor costs, which made it imperative that changes be instituted. As a result, we have made substantial changes to the Company over the past two quarters including the closure of our production capabilities and our move to outsourcing 100% of our production to low cost jurisdictions through our strategic supply and manufacturing contract with Turbon AG. In addition, after the recently completed sale of certain customers to Turbon, we have re-focused on developing our direct business model, which has always been our core competency and the most profitable side of our business, as well as new strategies which I will be announcing in the near future. We will continue to focus on streamlining our operations in order to drive profitability based on our new business model. We have gone from in excess of 140 employees down to less than 30 employees and the Company has become much more sales and marketing oriented. By proactively taking the action of putting our Teckn-O-Laser division under protection, it allows us to properly restructure through this period of change. Our objective is to further streamline our balance sheet and put the Company in a position whereby future contemplated transactions, both from a merger or acquisition perspective, and financing related, are not negatively impacted by the past structural components of a business that was heavily manufacturing based. These changes will allow us to service our customers with high quality products and services going forward and to do this profitably. In addition, we will continue to pursue the financing needed to complete the previously announced acquisition of Turbon AG," stated ADSERO CEO Yvon Leveille.
In terms of the second quarter results, revenues were $5,786,100 with an adjusted net loss of approximately $2,243,335. The Company, as part of its ongoing restructuring, has recorded special charges of approximately $8,418,250 representing the following: goodwill of approximately $2,388,298, write down of an investment in common shares approximately $2,548,774, write off of intangibles related to the production and manufacturing process of approximately $1,918,000, one time lease abandonment charges of approximately $623,178, and a provision related to the value of fixed assets of approximately $940,000 for a total net loss of $10,661,585. In addition, the Company continued to have extra costs during the quarter related to the duplication of procedures while preparing for the shutting down of production. The Company has also, as part of its restructuring, reduced the debt on the balance sheet, after the quarter end, by approximately $8.6 million or roughly 39%. The details related to the Company's financial statements are contained in its recently filed 10QSB.
About ADSERO Corp.
ADSERO Corp. (http://www.adserocorp.com ), through its wholly owned subsidiary Teckn-O-Laser Global Company, is a North American printer cartridge distributor. The company distributes remanufactured toner cartridges and inkjet cartridges. These products are sold to a variety of channels such as distributors and retail office supply stores, both domestically and internationally.
The ADSERO Corp. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=2199
Safe Harbor Statements
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements, with words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify forward-looking statements. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to the Company's periodic filings with the Securities and Exchange Commission.