Cantronic Systems Inc. (CVE:CTS
) (PINK:CRIXF) stock price spiked up after the company published promising year-end results.
CTS share price added 7% on Tuesday on a spectacular trading volume that topped 4 million and was 50 times the average of 80 thousand. Some intraday profit taking took place in the second half of the trading session and the stock ended the day right at the resistance at 22 cents.
The increase in trading activity came after the company announced its year-end financial result:
- Operating revenue up 98% to $18.1 million;
- Gross margin went down 8% to 38%;
- Net income was $1.9 million compared to $395 thousand lost last year;
- Dilution to shareholders was 18%.
The company sold a part of their business subsequent to the financial year-end. The financial results here represented only the China-based video surveillance technology business as the North American division was sold. The division had been loss making and the decrease in military spending didn't bode well for its future prospects.
During 2010 the company acquired two more subsidiaries: Actiontop Electronic (Shenzhen) Co., Ltd and Actiontop Electronics (HK) Co., Ltd. for a total of $1.2 million in cash and $2.2 million in shares. This led to their business expansion in the dome camera market.