NNRF Inc (NNRI)

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Increased margins on the financials

I was impressed with the 26% margin:

The manufacturing partner ZAO ATOLL (NNRF owns 50 percent of ATOLL) completed their financial statements for the first quarter ending March 31, 2007 and actually reported a greater than expected profit. ATOLL reported first quarter revenue of approximately $19 million (US dollars) and net income after tax exceeding $5 million (US dollars) which equates to a 26 percent
net profit margin. Management had previously indicated they were looking for around 18 percent net profit margin. As previously reported, the company confirmed its backlog stands at $183 million (US dollars) which certainly bodes well going forward. In addition, ATOLL is bidding on an additional $100 million (US dollars) worth of business which is expected to
be awarded during the third quarter.



More importantly, these financial statements were prepared in accordance with US generally accepted accounting principles (GAAP accounting) and thus should serve to add credence to what is being reported. The financial review was completed by 2K Audit which happens to be one of the most highly respected business consulting and auditing firms within Europe. The
following is a link to their website: http://www.2kaudit.ru/en/services.php?id=5

As you will find within the website, 2K Audit has about 500 clients and has received numerous recommendations from some of the largest firms within Russia.