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Ciscom Corp
Symbol CISC
Shares Issued 53,563,831
Close 2024-05-10 C$ 0.085
Market Cap C$ 4,552,926
Recent Sedar Documents

Ciscom loses $259,000 in Q1 2024

2024-05-13 13:18 ET - News Release

Mr. Michel Pepin reports

CISCOM REPORTS STEADY FINANCIAL GROWTH IN FIRST QUARTER OF 2024

Ciscom Corp. has filed its condensed consolidated financial statements and management discussion and analysis for the three-month period ended March 31, 2024, under its corporate profile on SEDAR+. Ciscom delivered consistent growth and results including positive cash flows from operations for the quarter ended March 31, 2024 (Q1 2024).

In Q1 2024, Ciscom's revenues increased to $7.4-million, up 1.6 per cent from $7.3-million for the same period the prior year. Gross profit for the same period stood at $1.4-million, a 7.4-per-cent increase from $1.3-million for the same period the prior year, with gross margins improving to 19.2 per cent from 18.2 per cent. This improvement, amounting to a 5.7-per-cent year-over-year increase, reflects the successful retirement of low-margin projects and the realization of cost synergies through efficient procurement and operational initiatives, a notable achievement in a challenging economic landscape.

The company achieved a cash-adjusted operating profit (EBITDA (earnings before interest, taxes, depreciation and amortization)) of $253,000 in Q1 2024, compared with EBITDA of $146,000 in Q1 2023, marking a significant year-over-year improvement of $239,000. This performance attests to the effectiveness of Ciscom's cost reduction initiatives, which have saved $625,000 annually across various operational areas.

Ciscom reported a net loss of $259,000 for Q1 2024, improving from a net loss of $575,000 in Q1 2023. The company also carries significant non-cash expenses totalling $0.402-million, including share-based compensation, intangible assets amortization and provision for loan loss, among others. Nonetheless, the operations generated positive cash flows of $675,000 in Q1 2024.

Ciscom continues to be in good standing with its banking partners, reflecting the company's solid and rigorous financial management and governance. Looking ahead, Ciscom is poised for further growth, with a focus on client-centric services and a commitment to operational excellence.

"Amid economic challenges, our strategic initiatives have not only maintained but enhanced our service quality. As markets begin to favour smaller-capital entities, we are well positioned to leverage these opportunities for strategic acquisitions. Our commitment to innovation and excellence continues to drive our competitive advantage and shareholder value," stated Michel Pepin, president, chief financial officer and director of Ciscom.

Shareholdings

As previously disclosed, on March 8, 2024, the company formally alerted the Ontario Securities Commission (OSC) of its concerns regarding DLT Resolution Inc.'s alleged share ownership as both unqualified and unlawful, raising serious concerns about the accuracy of DLT's public disclosures. The company strongly disputed reported ownership and also highlighted that DLT had failed to comply with the necessary regulations, and SEDI reporting requirements, all of which are crucial for shareholder protection.

On May 3, 2024, DLT issued a news release announcing that it was unwinding in full the share exchange it had initiated and that it currently does not own any (zero) shares in Ciscom.

About Ciscom Corp.

Ciscom actively invests in, acquires and manages market-leading companies within the information and communication technology (ICT) sector, targeting small and medium-sized enterprises with proven profitability. This approach allows entrepreneurs to monetize their equity and continue contributing, enhancing shareholder value through acquisitions. As a leader in omnimedia, particularly in data-driven marketing, Ciscom, through its subsidiaries, optimizes advertising spend across platforms, ensuring high return on investment and customer engagement. Strategic ICT acquisitions bolster service offerings and shareholder value, marking Ciscom as an emergent force in the data-driven and technology market. Ciscom became an issuer in June, 2023, on the Canadian Securities Exchange and October, 2023, on the OTCQB. Ciscom has two subsidiaries, namely Market Focus Direct and Prospect Media Group.

We seek Safe Harbor.

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