Edgewater Foods International, Inc.(OTCBB: EDWT), the first fully integrated shellfish producer with thelargest private marine research hatchery in Canada, today reported theCompany's revenues for the first six months of its Fiscal Year endingAugust 31, 2008 rose to $795,000, an increase of more than160% overrevenues of about $305,000 for the six months ended February 28, 2007.
For the three months ended February 29, 2008, revenues were approximately$366,000, an increase of more than 100% over revenues of $182,000 for thesame period in 2007.
The Company also reported a gross loss for the three months ended February29, 2008 of approximately $128,000, an increase of approximately $36,000over the same period in 2007. For the six months ended February 29, 2008,gross loss was approximately $233,000, up from $160,000 for the same periodin 2007. Management attributed the increase in the gross loss to theexpansion and development of larger scallop crops and larger scallop yieldsfor future years.
Cost of sales also increased due to higher processing plant and truckingcosts, as the Company began to establish a larger sales effort. However,sales increased faster than the cost of goods sold, and Management expectsthis trend to continue throughout the 2008 fiscal year, promoting improvedmargins into future years.
Robert Saunders, Chairman, CEO and President of Edgewater, stated, "We arevery pleased with our results for the first half of our 2008 fiscal year.The increase in our overall sales was a direct result of our new sales andmarketing efforts coupled with our emphasis on infrastructure improvements,our new processing facility, and crop expansion. In the first half of thisfiscal year we
-- began distribution into the Hong Kong market and expect these sales to increase in the upcoming fiscal quarters;-- added new product lines to our traditional West Coast markets; and-- introduced fresh scallop meat into high-end restaurants in Toronto and Montreal and frozen-on-the-half-shell product into the lucrative markets of the eastern United States and Canada."
"Moreover," Mr. Saunders added, "in late March, we received approval fromthe British Columbia government to convert our largest scallop farm to theoff-bottom growing technique, which we expect will increase our farmcapacity by 300% and add 20 million scallops to the harvest cycle. This isanother important step in expanding our production and, coupled with ournew processing plant and new marketing efforts, will help drive revenueincreases, Company growth and shareholder value for the rest of 2008 andthereafter."
About Edgewater Foods International, Inc.
Edgewater Foods International Inc., a Nevada Corporation, is the parentcompany of Island Scallops Ltd. ("ISL"), a Vancouver Island aquaculturecompany.
