Komet Manufacturers reports Q3 loss of $54,530 as revenue dips

By The Canadian Press

MONTREAL - Komet Manufacturers Inc. (TSXV: AQD.V), which signed a one-year agreement with Wal-Mart in Canada last week, said Friday it lost $54,530 in its most recent quarter as revenue fell more than 15 per cent.

The bathroom furniture maker said decline in revenue was due to a slight drop in sales to the Company's main clients, but the deal with Wal-Mart combined with new products and sectors are expected to start boosting revenue soon.

The quarterly loss compared with a loss of loss of $84,485 for the same quarter in 2007.

Revenues in what was the third quarter of the company's financial year were $1.5 million, down from $1.8 million a year ago.

Shares in Komet shot up last week after the company said announced a deal worth nearly $500,000 that will see its pre-assembled vanity kits which include a vanity, sink and tap available in 400 Canadian stores of the world's largest retailer.

The product retails for $99 in Wal-Mart. Other models ranging up to $249 are available exclusively at several large retailers, including Rona (TSX: RON.TO), Canadian Tire (TSX: CTC.TO) and Home Depot.

The MDF wooden bases are manufactured by 35 employees at its plant in Blainville, north of Montreal. Porcelain sinks and faucets imported from China are then added before being shipped to stores.