Global Innovation Corp. Announces Three and Six Months Fiscal Year 2008 Financial Results

WYLIE, Texas, March 17 /PRNewswire-FirstCall/ -- Global Innovation Corp. (BULLETIN BOARD: GINV) , a leading Electronic Manufacturer Services (EMS) company which designs, engineers and manufactures technologically advanced printed circuit boards, announces its financial results for the three and six months ended January 31, 2008.

Global Innovation Corp.

(in thousands,
except per share Three Months
amounts and Ended Six Months Ended
percentages) January 31, Change January 31, Change
2008 2007 2008 2007
(unaudited) (unaudited)

Revenue $8,296 $8,090 3% $16,736 $17,512 -4%
Gross Profit $1,933 $1,374 41% $3,722 $3,120 19%
Net income
(loss) $316 $(2) $418 $83
EPS (Basic) $0.03 $0.00 $0.04 $0.02
EPS (Diluted) $0.03 $0.00 $0.04 $0.01

Weighted avg.
shares
outstanding:
Basic 10,179,337 7,398,280 10,179,337 4,925,769
Diluted 10,179,337 7,398,280 10,179,337 9,350,127

Revenues. Net sales increased to $8,296,007 for t he three months ended January 31, 2008 from $8,090,218 for the same period in 2007, a net increase of $205,789 or 2.5%. Net sales decreased to $16,735,779 for the six months ended January 31, 2008 from $17,512,914 for the same period in 2007, a net decrease of $777,135 or 4.4%. The increase for the three months ended January 31, 2008 is a result of approximately $700,000 in new business and programs to several existing customers offset by a reduction of $500,000 to what has been historically our largest customer. The decrease from our largest customer started in the first quarter and is in addition to the $1.5 million decrease in the previous period. This decrease has moved this customer to our second largest and we are continuing to replace that revenue with new customers and new business to other customers. The 4.4% decrease for the six months is a result of approximately $2,000,000 decrease in sales to our largest customer resulting from softer demand and the transition of some of their product overseas, offset by approximately $1,200,000 in technology business that generates higher revenue and margins.

Gross Profit. Gross profit for the three months ended January 31, 2008 was $1,932,569 compared to $1,374,063 for the same period in 2007, an increase of $558,506 or 40.6%. Gross profit for the six months ended January 31, 2008 was $3,722,414, versus a gross profit of $3,120,715 in the previous period. Gross margin increased from 18% for the six months ended January 31, 2007 to 22% for the same period in the current year. Gross margin for the three months ended January 31, 2008 increased from 17% to 23%. We are realizing the cost savings from the initiatives we have implemented over the last four quarters. We are continually pursuing operational efficiencies and identifying improved process parameters that allow us to build product more economically while improving performance. Additionally, we are focusing our efforts and resources on products that generate higher margins and selective, low margin products are being identified for transition to a low cost region generating improved margins.

Net Income: Net income (loss) available to stockholders for the three months ended January 31, 2008 increased to $316,873 or $.03 per share (diluted), as compared to a net loss of $1,999 or $.00 per share (diluted) for the same period in 2007. Net income for the six months ended January 31, 2007 increased to $418,452 or $.04 per share (diluted), as compared to 83,225 or $.01 per share (diluted) for the same period in 2007. This increase in net income is mainly due to improving margins related to new customers and products replacing lower margin products and customers that the manufacturing of that products has been moved off-shore.

Brad J. Peters, Vice President and Chief Financial Officer of Global Innovation Corp., said, "This second quarter of 2008 has been both challenging and rewarding. We have been active in bringing in new technologies and customers to backfill the capacity that has been opened up as a result of our efforts to shift low margin business off-shore and the continued soft demand from our largest customer. We are obviously pleased with the results of Q2 and our efforts to date in implementing our strategy of revenue and margin growth for the Company. There are certainly challenges in our marketplace in regard to softening demand that we are beginning to see and we will continue to focus on our core strategy of building profitable growth for the Company."

About Global Innovation Corp.

Global Innovation Corp. is a leading Electronic Manufacturer Services (EMS) company through its wholly owned subsidiary Best Circuit Boards, Inc., designs, engineers and manufactures technologically advanced printed circuit boards. Our customers are generally high-end commercial companies, the military and military suppliers. The commercial markets are typically characterized by time-sensitive, high technology prototypes and short product life cycles. The military markets require special certifications and are characterized by high reliability and advanced technology and in many cases are formalized by long-term contracts. Our principal products are complex multi-layer printed circuit boards, including antenna and metalback radio frequency circuit boards. Printed circuit boards serve as the basis and foundation for electronic equipment. The circuit boards we produce are sold through direct sales people and manufacturers' representatives to a variety of commercial and military markets. The commercial markets and their applications include power systems, telecommunications, computer hardware, consumer electronics, instrumentation and controls. The military applications for our products include satellite communications, avionics, missiles, smart bombs, defense systems, radar detection and test equipment.

For More Information, Contact:
Brad J. Peters, Vice President and Chief Financial Officer
1-800-303-9266

Visit the Company's website at http://www.globalinnovationcorp.com/

Certain statements contained herein with respect to factors which may affect future earnings, including management's beliefs and assumptions based on information currently available, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements that are not historical facts involve risks and uncertainties, and results could vary materially from the descriptions contained herein. For more details on risk factors, see the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.

First Call Analyst:
FCMN Contact:

Source: Global Innovation Corp.

CONTACT: Brad J. Peters, Vice President and Chief Financial Officer of
Global Innovation Corp., 1-800-303-9266

Web site: http://www.globalinnovationcorp.com/

2008-03-17 16:34:44 0314349 PRNEWSWIRE