LOMO PLC summed up the results of the second quarter of 2004.
   The second quarter of the current year the enterprise finished more successful than the first.
   Revenues (net) from the sale of goods, products, works, services (less value-added tax, excises and similar mandatory payments) increased nearly in 1,5 times and reached  355 million rubles for the period from April to June of 2004 in comparison  with 249 million roubles for the first three months of this year.
   Profit from sales in the second quarter increased up to 158 million roubles - this is five times more, than in the first quarter (31 million roubles). Profit before tax for the previous quarter reached 54 million roubles (in comparison with loss before tax - 140 million roubles - for the period of January-March of this year). Income from sales amounted to 79 million roubles (in the first quarter of 2004 loss from sales was 49 million roubles).
   Low volumes of sales traditionally characterize the beginning of the year in many industrial enterprises. The point is that signing of big state contracts on supplying of defence and civic products takes place in the period by the end of March. Profit from them will appear later. That's why improving results in the second quarter were insufficient to cover losses of the first quarter.
   That's why the profit before tax for the six months has become negative and amounted to 87 million roubles. Besides, taking into account the peculiarity of differences in taxation and balance sheet, the firm had delayed tax liabilities in sum of nearly 41 million roubles. So, from the point of view of balance sheet, the net loss for the first quarter amounted to 127,5 million roubles.
   There are following sufficient changes in the balance sheet of LOMO for the second quarter of 2004. Long-term investments significantly raised, increasing of volumes of investments in organizations-counteragents causes it. This index amounted to 361 million roubles in the second quarter in comparison with 284 million roubles by the beginning of the reported year.
   Expenditures of the firm for construction in progress increased to 170 million roubles. It's connected with that fact, that LOMO takes part in realization of two big state defence orders with long cycle of producing of goods. There was increasing of warehouse of ready production up to 170 million roubles, it's explained by forming of delivering of goods on big export contracts.
   There was growth of debtors and accounts payable, which is adequate to the first part of balance. Debtors amounted to 637 million roubles up to the beginning of the reported period, 745 million roubles up to the end of reported period. It's connected with completing of delivering over big contracts for Russian defence export. Accounts payable amounted to 453 million roubles up to the beginning of the reported period and 650 million roubles up to the end of reported period. It's also connected with realization of liabilities over state defence order.