Jim Can, chief executive officer, states, Given the extremely tough economic climate that we have to deal with, we are very pleased that we can remain profitable and at the same time continue to give excellent customer service. I am extremely proud of our team who recognizes the tough economic times and is willing to persevere, work hard and maintain our strong momentum. Although it is still early in the final quarter of 2009 we expect to continue growing our sales and improve profitability in the next fiscal year.
For the two and eight months ended December 31, 2008, the Company reported revenues of $1,738,000 and $8,339,000 respectively, compared to $4,160,000 and $12,128,000 for the three and nine months ended December 31, 2007. A substantial decrease but expected considering the downturn of the residential and industrial construction markets.
The gross margins for the quarter and nine months ended December 31, 2008 were $681,000 and $2,488,000, respectively, representing 39.2% and 29.8% of revenue. The comparative amounts were $1,417,000 or 34.1% of revenue for the three months and $3,152,000 or 26.0% of revenue for the nine months ended December 31, 2007. The higher gross margin percentages were more positive evidence of our cost cutting and process improvement strategies.
Selling, general and administrative (S,G&A) expenses decreased to $658,000 for the two months ended December 31, 2008 from $1,478,000 in the three month period in 2007, a decrease of 55.5%. For the eight months ended December 31, 2008, S,G&A was down to $2,768,000 from $4,164,000 in the nine month period in 2007, a decrease of 33.5%.
Non-cash charges, such as depreciation and amortization, decreased to $223,000 in the third quarter and $861,000 in the 8 months ended December 31, 2008 from $478,000 and $1,315,000 for 2007.
The Company realized a net income of $23,000 for the third quarter and $153,000 for the eight months ended December 31, 2008. However, this was a substantial increase in profitability considering the magnitude of the losses incurred in prior years while integrating and consolidating many different companies in 2007 and 2006.
Cash used in operations during the eight months ended December 31, 2008 was roughly $297,000 which included the payment of $348,000 of trade payables as compared to $1,069,000 for the nine months ended December 31, 2007. $498,000 was used to acquire equipment and $882,000 was used to repay debt and obligations under capital leases.
