LAKE FOREST, Calif., May 17 /PRNewswire-FirstCall/ -- Probe Manufacturing, Inc. (BULLETIN BOARD: PMFI) , a full-service Electronics Manufacturing Services (EMS) company, today announced it filed with the Securities and Exchange Commission its Form 10-QSB and reported financial results for the first quarter ended March 31, 2007.
"We are very pleased with our continued success and execution of our business strategy," said Probe CEO Reza Zarif, "This quarter marks the 6th consecutive quarter of positive net income; we continued to achieve further diversification of our customer base as we focused on opportunities in the medical device manufacturing and aerospace industries."
First Quarter Financial Results
Revenue for the first fiscal quarter 2007 was $1.9 million compared to $2.0 million in the previous quarter and $2.1 million for the same period of 2006. This slight decrease in sales was primarily due to a change in our customer base. We disengaged with a major customer that accounted for 27% of our sales for the first quarter, and 23% of total sales for fiscal 2006. Despite the loss of this customer, we were able to diversify our customer base, maintain profitability and positive cashflow from operations.
The Company generated $182,000 in cashflow from operations for the quarter ended March 31, 2007, an increase of 167% from $68,000 in the same period in 2006. We retired $120 thousand of debt; and invested $81,000 in capital equipment, with the purchase of a new "Lead-Free" wave solder machine to accommodate business under the European Directive of RoHS.
For the quarter ended March 31, 2007, we also reported an increase in inventory turns, from 2.97 in the first quarter of 2006 to 3.67 in the same period of 2007. This equated to a reduction in inventory of $432,434 from March 31, 2006 to March 31, 2007.
"We are focused on maintaining profitability, as we shift a greater percentage of our customer base into medical device and aerospace industries. We believe these industries are the cornerstone of Southern California's high tech manufacturing and have a strong need for Probe's high quality, reliable local electronic manufacturing services. Additionally, we continue to focus Probe towards growth industries, such as alternative fuel technologies. We believe that this strategy should ensure long term sustainability and growth for the Company," continued Zarif.
About Probe Manufacturing, Inc.
Probe Manufacturing, Inc. was founded in 1995 and is one of Southern California's highest quality, low to medium volume Electronics Manufacturing Services (EMS) companies. Probe manufacturing Inc. provides a full range of electronics manufacturing and supply chain management services to some of the world's leading telecommunications, industrial, automotive, alternate fuel, hybrid, and medical device manufacturing firms. The Company provides OEMs with low cost of ownership, flexibility, and quality that improves their competitive advantage. Probe's service offerings include new product introduction, collaborative design, materials management, product manufacturing, product warranty repair, and end-of-life support. The Company is also in the process of developing alternative fuel technologies that enable vehicles and generators to operate on clean-burning alternative fuels. Probe Manufacturing's headquarters are located in Lake Forest, California.
To find out more about Probe Manufacturing, Inc. (BULLETIN BOARD: PMFI) , visit our website at http://www.probemi.com/ .
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The Company's public financial information and filings can be viewed at www.sec.gov.
Forward Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products and services or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.
