MOSCOW, Dec. 14, 2007 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) today announced that its manufacturing partner ZAO EMPB ATOLL has reported its US GAAP Q3 review.
The review, which was completed by ATOLL's auditors, CJSC Independent Consulting Group 2K Audit - Business Consulting, provides confirmation that the company's income will be in line with previously released forecasts. ATOLL reported Q3 2007 gross revenues of USD 18.7 Million and net after tax income of USD 3.5 Million. NNRF owns 50% of ATOLL.
Net income was down from previous quarters due to higher than anticipated relocation costs and normal summer holiday slowdowns. ATOLL is now located with a production department in St. Petersburg and a separate and significantly larger manufacturing and assembly department in the Kirov Region. These moves will result in overall labor cost savings. In addition the Kirov Region is closer to raw material suppliers which will result in lower freight costs on raw material deliveries. ATOLL management anticipates that this relocation will result in improvements in operating efficiencies and reduction in operating costs.
In addition to relocating manufacturing operations, ATOLL commenced relocation of its administrative group to Moscow. This move was made in order to have ATOLL's marketing department closer to its main customers who are located in Moscow. This permits ATOLL's marketing department to work more closely with customer contract tender departments.
As previously reported, ATOLL's auditor's became a registered firm with the United States Public Company Accounting Oversight Board (PCAOB). NNRF's U.S.-based auditors will participate in ATOLL's year end audit which is scheduled to commence the week of January 21, 2008. ATOLL's auditors have agreed to work closely with NNRF's U.S. auditors and as part of this cooperation process where practical will use NNRF's auditor's working programs and audit procedures. The audit will take place in Moscow.
As previously reported, Mr. Todd Sinclair NNRF's CFO and Mr. Peter Goerke, NNRF's Executive Vice-President have been appointed to ATOLL's Board of Directors. These appointments will facilitate NNRF's ability to equity account for Atoll and include NNRF's share of ATOLL's income on NNRF's financial statements.
ABOUT NNRF:
NNRF is a U.S. corporation with executive and operations offices in Moscow Russia, Munich Germany and North America. NNRF through its Russian based partners offers design and manufacturing of specialized products for nuclear reactors and nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF's management team has extensive industry and government service including extensive in-house expertise in all aspects of radiological protection and radiological waste management.
SAFE HARBOR STATEMENT:
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding announcements of financial results, business potential and other prospective presentations by NNRF. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products in domestic and international markets will continue to expand. NNRF undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in NNRF's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.