CORPUS CHRISTI, Texas, April 7, 2006 (PRIMEZONE) -- CSMG Technologies, Inc. (OTCBB:CTUM) announced today its fiscal 2005 year-end results.
Net loss for the year was $3,261,409, or $0.17 per share, compared to a loss of $2,357,682 or $0.21 per share, in 2004. Without an impairment loss required by accounting standards, net loss for the year was $1,843,762, compared to a net loss of $2,357,682 in 2004. Prior to the impairment loss of $1,417,647 for 2005, the 2005 loss was $1,843,762, which is $513,920 below the 2004 loss.
Accounting standards require that long-lived assets or assets that are held for use in the future, be measured against net cash inflows to test if carrying values exceed fair values. The carbon dioxide separator equipment was originally installed in 2003, but due to litigation, no cash inflows have yet to be generated. Although CSMG Technologies recently secured a gas purchase contract and it favorably resolved litigation, no cash flow was generated prior to December 31, 2005. The CO2 equipment, therefore, was recorded as a zero value, with an impairment loss of $1,417,647 included in the 2005 operating expenses. While this affects the financial statements of the company, it does not affect the value of the equipment or the company's ability to execute contracts for gas sales.
Donald S. Robbins, president and CEO of CSMG, said, "We are moving forward with our landfill gas sales. In February, we signed a 10-year contract with DuPont to supply commercial quality landfill gas. DuPont will become the model for all commercial customers. We believe this is the first of many agreements to commercially supply green gas from landfills."
Robbins continued, "We also had important breakthroughs in our patented tissue welding/bonding technology in 2005. Most recently, the technology was successfully used in leak-proof lung resection and cosmetic surgery procedures, including breast reduction, breast implants, mastoplexy and abdominal plasty. In January, our Ukraine partner received its first order for this equipment. The Ministry of Health of Ukraine ordered 10 sets. We are optimistic about the potential for use of this technology in the United States and other countries."
About CSMG Technologies
CSMG Technologies maintains offices in Corpus Christi, Texas; Washington D.C.; Atlanta, Ga.; and Kiev, Ukraine. For CSMG's stock quotes, visit http://www.otcbb.com. For more information, visit http://www.ctum.com, e-mail publicrelations@ctum.com, or contact Don Robbins at (361) 887-7546.
Additional information about CSMG can be found at http://www.ctum.com or e-mail publicrelations@ctum.com. An online investor kit containing CSMG press releases, SEC filings, current Level II price quotes, interactive Java, stock charts and other useful information for investors can be found at http://www.hawkassociates.com/csmg and http://www.hawkassociates.com/csmg/kit.htm.
Investors may contact Don Robbins or K. Bruce Jones, CSMG, at (361) 887-7546, publicrelations@ctum.com, or Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, info@hawkassociates.com.
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.