Revenues increase 32% driven by strong sales effort from Avensys Tech MONTREAL, Nov. 14 /PRNewswire-FirstCall/ -- Manaris Corporation (OTC:MANSOTC:FrankfurtOTC:WKN:OTC:A0F5LD) (BULLETIN BOARD: MANS, Frankfurt WKN: A0F5LD) , a leading manufacturer and distributor of fiber optic components and integrator of instrumentation and turn-key systems for environmental monitoring, today reported its financial results for the first quarter ended September 30, 2007 of fiscal year 2008. First Quarter 2008 Highlights: -- 32% revenue increase to $5.0 million as compared to $3.8 million for the same period last year; -- Gross margin of $2.2 million was 44.7% as a percent of revenue, as compared to 36.4% a year ago; -- Loss from Operations was $64 thousand, compared to $595 thousand, for the same period last year; -- Net cash used in operating activities for the period was $190 thousand, as compared with net cash used of $1.7 million for the same period last year; -- The Company achieved adjusted EBITDA of $157 thousand, as compared with adjusted EBITDA loss of $287 thousand for the same period last year; -- A capital raise of $4 million was completed with Imperium Partners through the issuance of a convertible debenture and warrants. An additional $2.5 million working capital line is available. Of the $4 million, $3.4 million was used to redeem the Company's Series B convertible debenture and a portion of the associated warrants. President and Chief Executive Officer John Fraser of Manaris Corp said, "Manaris generated solid revenue growth in the period. Market demand for optical telecom components, such as DPSK demodulators, and for fiber laser components is driving gross margins to over 40% due to increased volume and economies of scale. In this period, 20% of our revenues were attributed to the sale of critical optical components for the undersea telecom market. On a less positive note, we expect that the strength of the Canadian dollar will bring a downward pressure on margins in the current quarter ending December 2007, as most of our operating costs are in Canadian dollars." Mr. Fraser continued, "Our environmental division continues to deliver targeted revenues and operating results and add new product lines specifically in the air monitoring sector. Given its current Canadian market focus, this division is in a better position to maintain targeted operating results even while facing a strong Canadian dollar. We have also made the effort to reduce the dilutive impact of past financings on our shareholders, through our new arrangement with Imperium Partners. These efforts position Manaris to further grow its revenues and trend towards profitability while seeking sensible M&A opportunities to further consolidate the fragmented fiber optic and fiber laser components industries, and the environmental sector." Mr. Fraser concluded, "In this quarter, demand for fiber laser and optical components has been a growth driver for Manaris. We are benefiting from initiatives such as increased bandwidth to support the China Olympics in 2008 and the gradual rebuilding of infrastructures to support new digital services such as internet protocol television. Manaris is also fundamentally stronger. We have net working capital of $2.2 million, strong market demand and a great team." In conjunction with the earnings release, Manaris Corp will host a conference call with John Fraser, President and CEO, and Tony Giuliano, Chief Financial Officer. The call will take place, Wednesday, November 14, 2007 at 11:00am ET and will be simultaneously broadcast live over the Internet at http://www.manariscorp.com/ or http://www.vcall.com/. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within one hour of the live call. Those who would like to participate on the conference call should dial +1-877-407-8033 (US and Canada) and +1-201-689-8033 (International). A replay of the call will be available on the Company's Web site or by dialing +1-877-660-6853 (US and Canada) and +1-201-612-7415 (International). When prompted please enter access code, 286 and conference ID 26226. The replay will be available for two weeks following the event. Use of Non-GAAP Financial Measures The Company provides non-GAAP financial measures, such as adjusted EBITDA, to complement its consolidated financial statements presented in accordance with GAAP. Non-GAAP financial measures do not have any standardized definition and, therefore, are unlikely to be comparable to similar measures presented by other reporting companies. These non-GAAP financial measures are intended to supplement the user's overall understanding of the Company's current financial and operating performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by identifying certain expenses, gains and losses that, when excluded from the GAAP results, may provide additional understanding of the Company's core operating results or business performance, which management uses to evaluate financial performance for purposes of planning for future periods. However, these non-GAAP financial measures are not intended to supersede or replace the Company's GAAP results. The company uses adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for debentures and preferred shares accretion, and changes in fair value of derivative instruments) as a non-GAAP financial measure in this press release. A reconciliation of EBITDA to the operating loss before discontinued operations for the second quarter of 2007 is as follows: Adjusted EBITDA (Expressed in thousands of US Dollars) For the Three Months Ended September 30, 2007 2006 $ $ Net Loss (2,142) (229) Plus Interest expense, net 337 246 Depreciation and amortization 209 178 Debentures and preferred shares accretion 227 641 Loss on redemption of convertible debentures 1,423 - Change in fair value of derivative financial instruments 272 (758) Income Tax Benefit (169) (365) Adjusted EBITDA (Loss) 157 (287) Condensed Financial Statements Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - Unaudited (Expressed in thousands of U.S. Dollars, except for per share amounts) For the Three Months Ended September 30, 2007 2006 $ $ Revenue 4,970 3,758 Cost of Revenue 2,749 2,389 Gross Margin 2,221 1,369 Operating Expenses Depreciation and amortization 209 178 Selling, general and administration 1,612 1,409 Research and development 464 377 Total Operating Expenses 2,285 1,964 Loss from Operations (64) (595) Other Income (Expenses) Other income (expenses), net 12 130 Loss on redemption of convertible debentures (1,423) - Interest expense, net (337) (246) Debentures and preferred shares accretion (227) (641) Change in fair value of derivative financial instruments (272) 758 Total Other Income (Expenses) (2,247) 1 Net Loss Before Income Tax Benefit (2,311) (594) Income Tax Benefit - Refundable tax credits 169 365 Net Loss (2,142) (229) Net Loss per share - Basic and Diluted (0.02) (0.00) Weighted Average Common Shares Outstanding 95,212,000 79,516,000 Interim Consolidated Balance Sheets - Unaudited (Expressed in thousands of U.S. Dollars) September 30, June 30, 2007 2007 $ $ ASSETS Current Assets 7,883 7,347 Property and equipment, net 2,385 2,280 Intangible assets 4,103 3,967 Goodwill 4,409 4,117 Deferred financing costs 451 377 Deposits 128 106 Total Assets 19,359 18,194 LIABILITIES AND STOCKHOLDERS' EQUITY Total Current Liabilities 5,621 6,750 Long-term debt, less current portion 206 174 Convertible debentures 858 1,276 Balance of purchase price payable 1,368 1,194 Derivative financial instruments 2,572 65 Total Liabilities 10,625 9,459 Non-controlling Interest 25 23 Total Stockholders' Equity 8,709 8,712 Total Liabilities and Stockholders' Equity 19,359 18,194 About Manaris Corporation Manaris operates two wholly-owned subsidiaries. Our Avensys subsidiary, through its manufacturing division Avensys Technologies, designs, manufactures, distributes, and markets high reliability optical components and modules as well as FBGs for the telecom market and high power devices and sub- assemblies for the industrial market. Avensys is also a pioneer in the development of packaged fiber-based sensors and possesses leading edge intellectual property. Avensys Solutions is an industry leader in providing environmental monitoring solutions for air, water and soil, as well as geostructure in the Canadian market. Our other subsidiary, C-Chip Technologies Corporation (North America) licensed its technology to its technology partner iMetrik Inc, whereby, C-Chip will receive royalties from iMetrik for its worldwide sales of GSM-based "locate and disable" products into the "Buy Here Pay Here" (BHPH) used car market. Forward-Looking Statements: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations. For more information, please contact: Truc Nguyen or Christopher Chu The Global Consulting Group T: +1-646-284-9400 E: | E: DATASOURCE: Manaris Corporation CONTACT: Truc Nguyen, , Christopher Chu, , both of The Global Consulting Group, +1-1-646-284-9400, for Manaris Corporation Web site: http://www.manariscorp.com/ http://www.vcall.com/

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