Revenues for the first quarter were $4.7 million, an increase of 109% over last year’s revenues of $2.3 million. Net income for the quarter was $84,000, or $0.02 per share fully diluted, compared to a net loss of $1 million, or ($0.60) per share fully diluted, last year. Prior year results were affected by write-downs associated with the discontinuance of the Company’s computer services business. The revenue increase for the period was attributable primarily to equipment sales, with typically lower margins than those associated with service revenues.
David E. Chisum, CFO, stated, We are very pleased with the financial results of our first quarter. These results are in line with our new business plan put in place at the beginning of our fiscal year. Our repair revenue was up 86% over the same quarter last year, which is indicative of our redefined focus of servicing the manufacturers and users of broadband equipment and reflects acquisitions made in the last quarter of fiscal 2000. However, for the remainder of our fiscal year as we continue to transform the business, we expect to continue to realize a significant portion of our revenues from ancillary equipment sales activities. We expect these activities to help support the growth of our service business.
Louis Brunel, President and CEO, stated, Our recent agreements with Alpha Technologies, Inc., Adelphia Communications Corp, Ameritech New Media, Inc. and Videotron indicate our potential to capture a significant early share of the expanding service and repair market.
Brunel added, I am pleased with the execution that we have achieved since August in rolling out our digital repair capabilities in Canada and the U.S. Our new management team is in place, and we are expanding our service centers and adopting the unique A Novo technology systems and processes in all of our service centers.
