Currency Fluctuations Trouble CCTV Products Manufacturer

Shares down two cents over three months


VANCOUVER (CP) -- Extreme CCTV Inc., a supplier of active infrared night vision surveillance equipment, lost money in the fourth quarter as currency fluctuations helped reverse a profit last year.

The Vancouver company said Friday it lost $289,000 or two cents a share for the three months ended Sept. 30, the fourth quarter of the company's 2004 fiscal year. That compared with a profit of $192,000 or two cents a share the previous year.

Revenues rose nine per cent to $5.5 million from $5 million during the quarter, a traditionally slow period for the company because of the summer holiday period in Europe.

Extreme CCTV said currency fluctuations and minor year-end inventory adjustments squeezed its profit margins in the quarter.

For the full year, the company's profit fell to $750,000 from $1.8 million, while revenues rose 14 per cent to a record $23.2 million from $20.5 million.

``While frustrated by the foreign exchange challenges, we are pleased to have met our corporate unit growth targets this fiscal year and are encouraged by the increasing level of activity across our product lines,'' said Jack Gin, president and CEO of Extreme CCTV.

Burnaby, B.C.-based Extreme CCTV (TSX:EXC) develops and manufactures advanced infrared illuminators and precision-engineered video surveillance systems for use by security agencies, toll highway operators and other public and private clients.