KNIGHTSCOVE MEDIA CORP (TSXV: KC.A/KC.B) filed its unaudited interim consolidated financial statements for the third fiscal quarter ended May 31, 2008, posting an increase in revenue of 178 percent.
The Company changed its fiscal year end from December 31 to August 31 in 2007, resulting in comparative analysis made to the three-month period ended June 30, 2007 and eight-month period ended August 31, 2007.
Highlights during the period:
- Revenue of $986,014 generated in three-month period ended May 31, 2008 compared to $353,835 for the quarter ended June 30, 2007.
- Gross profit increased to $764,671 or 77 percent of revenues during the May 31, 2008 quarter versus $221,828 or 62 percent of revenues for the quarter ended June 30, 2007.
- Revenues of $3.19 million posted for nine months ended May 31, 2008, a 250 percent increase from revenue of $916,145 in the eight-month transitional year ended August 31, 2007.
The increase in revenue is primarily due to the acquisition and successful integration of Morningstar Entertainment Inc., a leading Canadian DVD distributor.
"We have initiated a plan for strategic growth and the creation of a full service entertainment corporation within North America, focusing on Family Friendly content. While the current market conditions make raising capital challenging for small companies we are focusing on the expansion of our revenues through organic measures, including the launch of many new and existing titles to the U.S.", noted Leif Bristow, President & CEO of Knightscove Media Corp. "Morningstar launched its catalogue to the U.S. buyers recently and expects to commence shipping its first orders in late August and September. This will add new sources of revenue for both new and existing library titles and will assist us as we continue to analyze new acquisitions. We remain highly focused and determined to increase top line revenues and enhanced shareholder value by maximizing the infrastructure which is now in place and can manage much higher volumes of business."
The Company reported net loss of $19,165 versus a net loss of $1,197,958 for the eight-month transitional year ended August 31, 2007 respectively. These losses are primarily attributed to non-cash items and amortization of intangible assets related to the acquisition of Morningstar. -- www.cnxmarketlink.com
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