Cygnal Technologies Corp. said Friday it sold its Oshawa headquarters building for $1.15-million (Cdn.) amid restructuring and has posted a second-quarter loss of $46,039.
The communications network service provider, which is consolidating operations and moving its headquarters to Markham, Ont. - just north of Toronto - said the loss amounted to zero cents a share and compared with a profit of $557,450 or four cents per share a year earlier.
Revenue for the quarter ended June 30 fell to $36.6-million from $42.1-million.
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Costs included restructuring charges of $100,000, mainly for staff cuts, adding to charges of $1.6-million in the fourth quarter of 2002 and $500,000 in the first quarter of 2003.
"The corporation has been seeking additional debt or equity financing of approximately $5-million to fund operations, restructuring and potential strategic acquisitions," Cygnal said in a release. "It is anticipated that this financing will take place in the third quarter."
On July 31, Cygnal Technologies (TSX:CYN) sold its Oshawa building for $1.15-million and used proceeds of about $870,000 to reduce long-term debt.
"I am pleased with the progress of our streamlining initiatives," CEO Kieron
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Dowling said. "Compared to the first quarter, our revenues are higher and our [selling and general]costs are lower."
He said he expects a return to quarterly revenue growth and "positive trends" in gross profit and costs.
Cygnal affirmed its revenue guidance for the year at $148-million to $152-million and earnings of about nine cents a share.