redline announces new directors releases financial statements and receives loan extention

Redline Performance Products Inc. announced June 21 that it has realigned its board of directors.

Mark Payne, president and cheif financial officer, has been named the company's president and cheif executive officer. The company intends to hire a new cheif financial officer.

Kent Harle, former cheif executive officer, has been named the company's executive vice president of product development.

Redline has also announced an agreement with its primary lender to extend its $2.4 million in financing through Nov. 26.

Redline said Community National Bank of North Branch, Minn. has agreed to the extension of its secured debt, which will help Redline continue making sleds. Currently the company says it has shipped more than 50 of its 800 Revolt models and has orders for about 400.

Mark Payne, Redline's CEO, said the deal allows Redline to continue making and shipping sleds "as we assess our longer-term operating and financial needs." Redline has offices in Minneapolis, Minn. and San Diego, Calif.

Redline also released its fiscal 2004 fourth quarter and year ending March 31, 2004 results. The company reported revenues of $10,140 for the quarter, a result of some production delays and higher parts costs than expected in the early stages of production.

The company's net loss for the fourth quarter of the fiscal 2004 was $3.4 million ($0.69 per diluted share), with a net loss of $1.5 million ($1.41 per diluted share).

For the fiscal 2004, net loss was $8.8 million ($2.04 per diluted share), versus a fiscal 2003 net loss of $3.7 million ($2.96 per diluted share).

According to the Business Wire, "increased net losses for the fiscal 2004 three-month and twelve-month periods are due primarily to higher selling, general and administrative expenses (primarily personnel), valuation of inventory and higher research and development costs."