<PAGE>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October , 2000
FANTOM TECHNOLOGIES INC.
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(Translation of registrant's name into English)
1110 Hansler Road
Welland, Ontario, Canada L3B 5S1
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F X
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Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b) : 82-___________
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FANTOM TECHNOLOGIES INC.
Date: October 26, 2000 by: /s/ Walter J. Palmer
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Walter J. Palmer
Secretary
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Item List
1. Press release dated October 25, 2000
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c6859
r f BC-Fantom-Q1-results 10-25 0952
News release via Canada NewsWire, Toronto 416-863-9350 -ME-
Attention Business/Financial Editors:
/\First Quarter Results Reported By Fantom Technologies Inc.@
- Also Announce Licensing Initiative and Declare Dividend
TORONTO, Oct. 25 /CNW/ - First quarter results were announced today by
Fantom Technologies Inc. (NASDAQ: FTMTF; TSE: FTM). For the three months ended
September 30, 2000 the Company recorded a net loss of $0.2 million or $0.03 per
share (based on 9,130,408 shares outstanding) compared with net income of $3.4
million or $0.38 per share (based on 9,046,119 shares outstanding) for the
year-earlier period. Sales were $49.7 million compared with $57.0 million for
the year-earlier period.
The Company indicated that its gross margin declined to 24.6% in Q1 of
fiscal 2001 from 37.3% in Q1 of fiscal 2000 due to competitive pressures on
pricing and $7.1 million of sales of refurbished vacuum cleaners that were
recorded at cost. The sales of refurbished goods were transacted for a
combination of cash and barter credits.
Commenting on the Company's results, Fantom Technologies' President & CEO
Allan Millman said, "Our dual-cyclonic floor-care business recorded a small
profit during the quarter. To strengthen our core business in the face of
intense competitive activity within the bagless segment of the vacuum-cleaner
market, we are aggressively reducing costs and repositioning retail price
points. We also plan to introduce a fresh, new look, and incorporate additional
features in our product line, in the first half of calendar 2001.
"Importantly, we are continuing to invest in developing new technologies
and 'next-generation' products to fuel our future growth. Our innovative
CALYPSO(TM) Microbiological Water Processor is scheduled for introduction in
upcoming months, and our full-performance wireless vacuum is planned for launch
around mid-year calendar 2001. In addition, work is progressing on our universal
thermal energy cell which is designed to act as a heat pump, converting
electrical energy for heating or cooling, or as an electrical generator fed by
solar energy or fossil fuels."
The Company also announced today that it has signed a letter of intent with
Matsushita Seiko Co., Ltd. of Japan to license Matsushita Seiko to manufacture
and market Fantom's CALYPSO(TM) Microbiological Water Processor in the Far East
and to utilize Fantom's ozone technology in humidifiers in the Far East. The
license is subject to further evaluation of the CALYPSO(TM) product and ozone
technology by Matsushita Seiko and completion of a definitive agreement.
Fantom Technologies further announced today that its Board of Directors
declared a quarterly cash dividend of 5 cents per share payable on January 1,
2001 to shareholders of record at the close of business on November 30, 2000.
About Fantom Technologies
Fantom Technologies Inc. of Ontario, Canada is a growth-oriented,
household-appliance company, seeking the best ideas in technology that will make
daily living better for consumers. Fantom has changed the face of the vacuum
cleaner industry in North America with its line of dual-cyclonic vacuums. The
Company is developing several new products based on proprietary technology and
has aggressive plans to expand the markets and geographic territories in which
it competes. Since May 1998, eighty-six utility patent applications have been
filed for technologies the Company is either acquiring or exclusively licensing
through its association with Omachron Technologies, Inc. Of these, twenty-three
have already been allowed by the United States patent office.
For more information about Fantom Technologies, visit the Company's web
site at www.fantom.com.
The foregoing information includes certain statements relating to the
Company which are forward-looking statements under Section 21E of the United
States Securities Exchange Act of 1934. The words "plan", "scheduled",
"designed" and similar expressions, as they relate to the Company or its
management, are intended to identify forward-looking statements. Such
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statements are based on assumptions made by, and information available to, the
Company. However, there are important factors that could cause actual results to
differ materially from those in such forward-looking statements including, among
others, the contingencies arising from the uncertainties which are inherent in
the development of new technology and the unanticipated costs and time delays
which often arise in the process of developing new products based on innovative
technology. The Company does not intend, and assumes no obligation, to update
the forward-looking statements to reflect actual results, changes in assumptions
or changes in other factors affecting such statements.
Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Statements of Income
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Three Months Ended
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September 30 2000 1999
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Sales $49,676,554 $57,044,537
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Cost of Goods Sold $37,461,449 $35,764,199
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Gross Margin $12,215,105 $21,280,338
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Selling, General &
Administrative $11,805,309 $15,155,355
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Research and Development $586,143 $784,374
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Finance Charges $213,951 ($64,921)
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Income (Loss) Before Taxes ($390,298) $5,405,530
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Tax Provisions ($150,483) $2,000,000
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Net Income (Loss) ($239,815) $3,405,530
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Earnings Per Share (Basic) ($0.03) $0.38
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Average No. of Shares
Outstanding 9,130,408 9,046,119
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Earnings Per Share (Fully-
Diluted) $ - $0.36
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Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Balance Sheets
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September 30 2000 1999
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Cash $ 0 $ 7,513,003
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Other Current Assets $ 63,581,833 $ 64,475,695
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Deferred Development Costs,
Net of Amortization $ 4,465,119 $ 2,128,044
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Other Assets $ 7,174,044 $ 1,842,400
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Property, Plant & Equipment
at Cost $ 48,433,980 $ 38,731,211
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Less Accumulated Depreciation ($ 11,711,410) ($ 8,369,311)
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Net Fixed Assets $ 36,722,570 $ 30,361,900
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Total Assets $ 111,943,566 $ 106,321,042
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Bank Indebtedness $ 13,137,307 $0
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Other Current Liabilities $ 31,395,000 $ 38,500,057
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Future Income Taxes $ 7,545,200 $ 3,632,564
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Long-Term Deferred Currency-Hedging
Exchange Gains $0 $ 1,451,573
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Other Liabilities $ 220,000 $ 43,000
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Share Capital $ 28,988,827 $ 28,623,308
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Retained Earnings $ 30,657,232 $ 34,070,540
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Total Liabilities & $ 111,943,566 $ 106,321,042
Shareholders' Equity
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%SEDAR: 00001906E
-0- 10/25/2000
/For further information: please contact: Allan Millman, President & CEO
(416) 622-9740, Ext. 232; Steve Doorey, Vice President, CFO, (905) 734-7476,
Ext. 281/
(FTM. FTMTF)
CO: Fantom Technologies Inc.
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ST: Ontario
IN:
SU: ERN
-30-
CNW 18:55e 25-OCT-00
