this is another tox imo read announcement

ALPHA
TECHNOLOGIES CORP. LTD.
Australia Office:
Level 2, 517 Flinders Lane
Melbourne 3000.
Australia
Tel: (61) 3 9629 5020
Fax: (61) 3 9629 5466
Web Site: www.alphatechnics.com
Shareholder’s Newsletter
For the Quarter Ended 30 June 2006
(Note: All figures are reported in Australian Dollars unless otherwise stated)
Dear Shareholder,
The Company is delighted to report its most profitable year ever.
The consolidated unaudited year end results show that the Sales for the quarter of $4,535,000 were
$1,405,000 up on last year’s figure for the same period of $3,140,000. The Sales for the year of $15,234,000
were up $3,212,000 compared to Sales for the same period last year of $12,022,000.
The Profit before Tax figure for the quarter of $668,000 was $347,000 up on last year’s figure for the same
period of $321,000. The Profit before Tax figure for the year of $2,251,000 was $598,000 up on last year’s
figure for the same period of $1,653,000.
The Profit after Tax figure for the quarter of $2,314,000 was $1,996,000 up on last year’s figure for the same
period of $318,000. The Profit before Tax figure for the year of $3,746,000 was $2,058,000 up on last year’s
figure for the same period of $1,688,000. These figures include a deferred tax benefit of $1,626,000.
These figures include 6 months profits from Control HTP Srl a 70% owned subsidiary that Alpha Technics
Europe Srl. acquired earlier this year.
EBIDTA for the quarter of $738,000 was $367,000 up on last year’s figure for the same period of $371,000.
EBIDTA for the nine months of $2,479,000 was $565,000 up on last year’s figure for the same period of
$1,914,000.
USA Subsidiary Results
Turnover in the USA subsidiary in the year ended 30 June 2006 was approximately USD 9,846,000. This was
a 9.3% increase over the same period of the previous year of USD 9,007,000.
The operating results for the year ended 30 June 2006 for our USA subsidiary produced a net profit after tax
of USD 2,803,000; up USD 1,620,000 on last years figure for the same period of USD 1,183,000.
The earnings before interest, depreciation, tax and amortization for the year were USD 1,767,000.
COMPANY RESULTS SUMMARY
2006 2006 2005
3 Months to 30 June
2006
Year to 30 June 2006 Year to 30 June 2005
(AUD) ‘000’s (AUD) ‘000’s (AUD) ‘000’s
Sales 4,535 15,234 12,022
Gross Margin 1,585 6,056 5,102
Net Income before
Taxes
668 2,251 1,653
Taxes (1,646) (1,495) (35)
Net Income after
Taxes
2,314 3,746 1,688
EBIDTA 738 2,479 1,914
ALPHA
TECHNOLOGIES CORP. LTD.
Australia Office:
Level 2, 517 Flinders Lane
Melbourne 3000.
Australia
Tel: (61) 3 9629 5020
Fax: (61) 3 9629 5466
Web Site: www.alphatechnics.com
Sensor Components or predominate Sales from the China facility for the year were USD 4.1 million, up USD
285k from last year largely due to increased sales of medical components to a number of our major
customers. The year to date gross margin of 45% was up 1% from last year due to a more favourable
product mix.
Sensor Assemblies or predominate Sales from Mexico facility for the year were USD 3.9 million, up USD
468k from last year. The year to date gross margin of 37% was down 3% from last year due to lower
productivity and a less favourable product mix.
Test & Measurement Systems sales for the year were USD 1.9 million, up USD 86k from last year. The year
to date gross margin was 48%, up 4% from the previous year due to higher margin sales. There was
a significant increase in our 9 channel temperature verification system
Strategic Developments
Alpha Technics Europe has now successfully completed its acquisition of Control H.T.P.
Management is currently preparing a long term business plan for the development of Alpha in Europe.
From this acquisition of Control H.T.P. Alpha should experience significant growth and profits as: -
• It provides Alpha with new products to deliver into its current USA markets;
• It provides a distribution outlet for Alpha’s current products throughout Europe; and
• It provides an opportunity for immediate improvement in gross margins on Control H.T.P. products
which are currently manufactured in Europe. The Alpha connection provides the opportunity for these
products to be manufactured through its low cost manufacturing operations in Asia.
About Alpha
Alpha is a company listed on the Official List of the Australian Stock Exchange Ltd (code ASU). It is focused
on the design, manufacture and sale of specialised technology and associated products. Alpha manufactures
high quality temperature sensors, probes and thermostats for medical and industrial applications. The
Company has world class manufacturing facilities in the United States, Mexico and China - with distribution
throughout the United States and Europe.
Thank you for your continued support of the Company.
Fernando Marchitelli
Chairman & CEO