CENTENNIAL, Colo., Nov. 14 /PRNewswire-FirstCall/ -- CET Services, Inc. (AMEX:ENV) reported revenue for the third quarter ended September 30, 2006 of $411,000, down from $1,098,000 in the year-earlier period. The drop in revenue was a result of a decrease in closings on housing units, which account for 81% of revenue for the current period as compared with 94% of the higher revenue recorded in the prior-year period. Water services activity accounts for the remainder of revenue in the respective quarters. Revenue was significantly lower for current quarter and a net loss of $146,000, or ($0.03) a share, was incurred as compared with net loss of $55,000, or $0.01 a share, in the year earlier period.
For the nine-month period of 2006, revenue was $2,583,000, up from the $1,938,000 reported for like period of 2005. The increase in revenue is largely the result of the sale of two industrial buildings which also helped par the net loss for the current period to $170,000, or ($0.03) a share, as compared with a net loss of $276,000, or ($0.05) a share, for the first nine months of 2005.
Steven H. Davis, President and CEO, said, "Sales at Sites II and III of the City of Westminster development were substantially lower than anticipated." In addition, he stated, "The Company continues in its discussions with the City of Westminster regarding the development of Site IV with the construction of an office building and 12 townhomes." In April 2006, the Company entered into a Letter of Intent to acquire Zoi Interactive Technologies Inc. ("Zoi") the terms of which, if culminated, would result in a reverse merger of the two entities. Although the amended time line specified to reach a definitive agreement expired on November 4, 2006, the Company is continuing discussions with Zoi and exploring other alternatives.
CET Services, Inc. is engaged in niche market property development in urban areas with a preference for projects requiring some degree of remediation.
CET Services, Inc. Three Months Ended September 30, 2006 (unaudited) 2006 2005
Revenues $410,717 $1,098,430
Net Loss ($145,893) ($54,621)
Loss Per Share
Basic & Diluted ($.03) ($.01)
Weighted Average
Shares Outstanding
Basic & Diluted 5,554,489 5,554,489 Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Safe Harbor provisions of the federal security laws. Forward-looking statements involve risks and uncertainties, including, but not limited to, the cyclical nature of residential housing in general, local economic conditions, interest rate volatility, weather related factors, and fluctuations in building material prices and other risks detailed from time to time in the Company's Form 10-KSB and other regularly filed reports. DATASOURCE: CET Services, Inc.
CONTACT: Steven H. Davis, CEO and President, or Dale W. Bleck, CFO, both of CET Services, Inc., +1-720-875-9115
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