MISSISSAUGA, Ontario, July 31, 2006 (PRIMEZONE) -- D Mecatronics Inc. (Pink Sheets:DMTN) designs, manufactures, and markets industrial and consumer products. Through independent subsidiaries we provide state of the art automation technology solutions to enable customers to dramatically accelerate time-to-market and increase revenue.
"Our fiscal second quarter delivered profitability and set recent records for both our innovative product sales and total revenues," stated Berardino Paolucci, President and CEO. "We are pleased to report continuing acceleration in sales of our tube related automated systems used by automotive parts and assembly suppliers, with unit shipments up 100% year-over-year in 2006 compared to 44% unit growth in the prior fiscal year. For the fiscal second quarter ending June 30, 2006, total sales are expected to be approximately $4.5 million, the highest two quarter sales in three years. This represents an increase of approximately 200% from total sales of $2 million for the entire fiscal year ended December 30, 2005."
"Fiscal 2007 will be a year of increased R&D investment for D Mecatronics Inc. as we add new product categories to expand our addressable market," states Drasko Karanovic (President of our wholly owned subsidiary D&R Technology). "To invest in the development of new products and management platforms, our fiscal 2007 operating plan increases R&D by approximately 25%, while maintaining operating expenses at current levels through reductions in expenses."
Management is also currently discussing a potential partnership and an exclusive manufacturing contract with a publicly owned company that develops renewable energy technologies and applies it to new generation power systems. This company, which is well positioned to gain major market share and dominate the niche of fuel cells and expansion into other renewable energy areas in the fragmented alternative energy marketplace, has initiated discussion with D Mecatronics Inc. to be an exclusive manufacturer of their products, and as said partnership develops, management will continue to keep shareholders and investors informed. The collaboration with these partners is focused on diagnosing the customer's requirements, implementing solutions, and creating continuous improvements.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
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