Extreme CCTV Reports Drop in Q1 Profits

VANCOUVER (CP) - Extreme CCTV Inc. reported a drop in quarterly profits Monday and said its revenues missed its own targets in a quarter where the company did not perform well.

"I am not pleased with our first-quarter performance," Jack Gin, president and CEO of Extreme CCTV, told a conference call with analysts.

However Gin said he was confident with the company's outlook for its 2005 financial year.

"The global market for security and surveillance products continues to grow and interest in Extreme's products, particularly our higher end products is growing," he said.

The night-vision surveillance equipment maker said Monday it earned $3,895, or no cents per share, for the three months ended Dec. 31, down from $169,043, or one cent per share, the previous year.

Revenues for the quarter grew to $5.6 million from $5.4 million.

Quarterly revenues from Europe rose to $2.6 million from $2.3 million, due in part to the expansion of the company's technology used to read licence plates. Overall unit sales in the United States were consistent year over year, while sales in Canada increased.

Research and development spending increased to $391,000, up from $265,000, a year ago.

Extreme holds an investment in Obzerv Technologies Inc., developer of a long-range night vision technology that works in complete darkness and in poor weather such as rain, fog and snow.

Gin said the company expects to start testing a prototype camera that uses the technology by the end of the year.

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.

Shares in the Vancouver company fell seven cents to close at $2.73 in Monday trading on the Toronto Stock Exchange.