MONTREAL, QUEBEC--(Marketwire - Jan. 25, 2013) - SENSIO Technologies Inc. (« SENSIO » or the « Corporation ») (TSX VENTURE:SIO) presented today its financial results for the second quarter of fiscal year 2012-2013. During this quarter, the Corporation's revenues growth from consumer electronics continued totaling $84,867 compared to $61,226 for the same quarter of the previous year, an increase of $23,641. The increase of revenue coming from consumer market is explained by the signing of new agreements as well as by the revenue growth from previously signed agreements. Total revenues for the period totaled $92,433 compared to $109,702 for the same quarter of the previous year, a decrease of $ 17,269 or 15.7%. Although the total revenue is in decline following the decrease of revenues from the Live 3D market, the Corporation was able to reduce its losses of 172 112$ or 14.6% thanks to the cost control of operational expenses. Finally, the deferred revenues for this quarter passed from $555,765 on May 31st, 2012 to $984,176 on November 30, 2012, an increase of $428,411. These revenues will be recognized progressively, in accordance with the terms of the applicable agreements.
"During the last quarter, our activities on the consumer electronics market generated significant revenue and deferred revenue. This demonstrates once again our capacity to monetize our intellectual property as well as the progress of the corporation and its objectives in a growing 3D industry" explained Nicholas Routhier, President and CEO. "The successful pursuit of the development of 3DGO! has allowed us to launch the testing phase of 3DGO and announce our collaboration with Vizio at the last CES. To that effect, the reactions of the studios, manufacturers and specialised medias having seen the 3DGO! demonstration was excellent and we are very encouraged and excited with regards to the coming official launch on the American market. In view of the reaffirming by many actors of the industry that 3D remains a priority on the market, in conjunction with smart televisions and 4K, we are more convinced than ever that our bold content strategy will be the key of our success in 2013 and that we will be able to demonstrate concrete strategic results to our shareholders in a near future"
Highlights of the second quarter ended November 30, 2012
- Signature of a licensing agreement with WiLAN over certain patents associated with SENSIO® S2D Switch technology;
- Closing of a private placement of $3.45M all coming from institutional investors;
- Launch of testing phase of 3DGO!, the last step before the official launch;
- Increase of deferred revenue of $428,411 since the beginning of fiscal year;
- Scaled down operating expenses by 14.6% since the beginning of the fiscal year.
Live 3D - Priority to series of events and network deployment
The Corporation didn't get any revenue from the Live 3D market during the second quarter compared to $24,268 for the same period last year. This decrease of revenues from the Live 3D is explained by the income earned during the second quarter of the previous year following the integration of the SENSIO ® Hi-Fi 3D technology in a product.
"We will continue to evaluate various projects in parallel, however, for now, none of those presented to us respect the profitability criteria we have established internally" indicated Richard LaBerge, Executive Vice-President and Chief of Business Development Officer. "At this time, we are pursuing our investigation using a minimum of internal resources and we stay ready should a project respecting the parameters we have established present itself to us. We remain committed towards Live 3D and we strongly believe that after its launch 3DGO! will represent a major asset for the profiting of Live 3D events, which will allow us to revive this activity more actively. "
Consumer Electronics - pursuing of progress
On the Consumer Electronics side, SENSIO's revenues increased from $61,226 for the second quarter of the previous period to $84,867 for the quarter ended November 30, 2012, an increase of 38.6%. The increase of revenue coming from consumer market is explained by the signing of new agreements as well as by the revenue growth from previously signed agreements.
"The increase of our revenues on the consumer electronic market proves that 3D is pursuing its progression in this important market and confirms the relevance of our plan" said M. Routhier. "During the coming months, we will pursue our efforts on the integration of the SENSIO® Hi-Fi 3D technology in the products of TCL and Hisense, our latest licensees, as well as on the adding of new manufacturer clients in order to increase our penetration rate. This will be strongly facilitated by the launch of 3DGO! which brings an undeniable increased value to 3D products offered in the market by manufacturers who have insufficient content for their clients, the consumers. The recent announcement of the agreement with Vizio pertaining to 3DGO! is a concrete and significant example thereof. By taking into consideration the potential future revenues generated by the agreement with Wi-Lan for the S2D Switch, by the current and future licensees of SENSIO, and by the 3DGO! service in the growing 3D at home market, we can only be optimistic on the future progress of our revenues in this market. "
Summary of financial results
For the second quarter of fiscal year 2012-2013, SENSIO posted revenues of $92,433 compared to $109,702 for the same quarter of the previous year, a decrease of $17,269 or 15.7%. Gross profit for the second quarter was $88,726 or 96.0% of its revenues compared to $105,479 or 96.2% of its revenues for the same period the previous year.
During this quarter, selling expenses amounted to $594,734 compared to $642,499 for the same quarter of the previous year, a decrease of $47,765 or 7.4%. Research and development expenses totalled $154,168 compared to $215,816 in the corresponding quarter of the previous year, a decrease of $61,648 or 28.6%. Administrative expenses amounted to $350,987 for the quarter ended November 30, 2012 compared to $427,958 for the comparative quarter the previous year, a decrease of $76,971 or 18%.
SENSIO's net loss for the quarter ended November 30, 2012 came to $1,010,819 (0.02 $ per share) compared to $1,182,931 (0.02 $ per share) as of November 30, 2011, a decrease of $172,112 or 14.6%. During the quarter, the management of the Corporation continued to manage its expenses in order to optimize the use of its financial resources while ensuring to achieve its business objectives.
Selected Financial information
|Fiscal year 2013||Fiscal year 2012||Fiscal year 2011|
|Basic and diluted loss per share||(0.02||)||$||(0.02||)||$||(0.03||)||$||(0.02||)||$||(0.02||)||$||(0.02||)||$||(0.03||)||$||(0.03||)||$|
|Basic and diluted weighted average number of shares||60,696,110||52,512,544||52,487,797||52,487,797||52,487,797||52,486,710||52,371,058||51,991,054|
For more details, please consult the Management Discussion and Analysis report and the Financial statements for the referenced quarter on SENSIO's website: www.sensio.tv
About SENSIO Technologies Inc. (SENSIO):
Founded in 1999, SENSIO Technologies Inc. (www.sensio.tv) is a pioneer in the 3D industry. Its vision, expertise and state-of-the-art solutions, based on diversified stereoscopic image-processing technologies, have been trusted by some of the biggest names in the broadcasting and consumer electronics sectors, as well as for live 3D events in cinemas, to power numerous industry firsts, initiate new business models and generate immediate revenue with a distinctive 3D offering.
SENSIO enables its clients to deliver the best possible 3D experience for the end-user through a broad portfolio of licensed products, based on quality, content, usability and compatibility. These include its flagship, award -winning technology, SENSIO® Hi-Fi 3D, the premium-quality frame-compatible format.
SENSIO's technologies are the object of patents and intellectual property protection proceedings worldwide. SENSIO is listed on the Toronto TSX Venture Exchange (SIO).
SENSIO® is a registered trademark of SENSIO Technologies Inc.
This news release contains forward-looking statements that reflect the company's expectations with regard to future events. Actual events could differ significantly from those anticipated in this document.