TORONTO, Ontario, Nov. 12, 2003 (PRIMEZONE) -- Thinkpath Inc. (OTCBB:THTHF) today announced financial results for the third quarter ended September 30, 2003.
Revenues for the three and nine months ended September 30, 2003 were $2,650,000, and $7,610,000 compared to $2,890,000 and $9,950,000 for the same period in 2002. The decline in revenue is a result of the focus on higher margin engineering sales in the areas of design, build, publication and documentation versus off-site engineering support, as well as the reduction in sales force as part of the company's cost cutting initiatives undertaken in the later part of 2002. Gross profit for the three months ended September 30, 2003 increased to 33% compared to 31% for the same period in 2002. Gross profit for the nine months ended September 30, 2003 and 2002 was 32%.
For the three and nine months ended September 30, 2003, the company recorded an operating loss of $110,000 and $600,000 compared to an operating loss of $1,760,00 and $2,900,000 for the same period in 2002. Included in the loss for the three and nine months ended September 30, 2003 is depreciation expense of $140,000 and $520,000 for 2003 and $250,000 and $780,000 for 2002.
For the three and nine months ended September 30, 2003, the company recorded a net loss of $1,860,000 and $7,160,000 or (0.00) and (0.02) per share compared to a net loss of $21,40,000 and $3,210,000 or (0.07) and (0.14) per share for the same period in 2002. Included in the net loss for the three and six months ended September 30, 2003 is interest expense of $1,580,000 and $6,250,000 related to the beneficial conversion feature on the 12% Senior Secured Convertible Debentures issued in December 2002 and the first nine months of 2003.
At September 30, 2003, the company had a cash flow deficiency from operations of $230,000 compared to a deficiency of $1,150,000 at September 30, 2002.
At September 30, 2003, the company had a working capital deficiency of $2,380,000 and stockholder's equity of $2,160,000 compared to a working capital deficiency of $3,720,000 and stockholder's equity of $1,320,000 at December 31, 2002.
Further information about the company may be found at www.thinkpath.com.
For More Information and Investor Relations Please Contact:
Jeneen Weekes Thinkpath Inc. Tel: (905) 460-3040 Email: communications@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.