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Active Control Technology Releases Fiscal 2011 ResultsMargins increase 200% as a result of successful cost reduction strategies (November 25, 2011)
TORONTO, ONTARIO -- (Marketwire) -- 11/25/11 -- Active Control Technology Inc. (TSX VENTURE:ACT), a leading provider in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries, today announced its financial results for the fiscal year ended July 31, 2011.
The Corporation generated revenues of $2,948,429 during the year ended July 31, 2011, as compared to $5,310,491 in the year ended July 31, 2010. The decrease is attributable to a decline in the deployment of new ActiveMine mine sites, combined with an unusual increase in revenue for 2010 as a result of a backlog in prior years from existing customers. Although sales were lower the Corporations gross profit increased from $611,150 in fiscal 2010 to $1,103,196 in fiscal 2011. More significantly the gross margin percentage rose from 12% in 2010 to 37% for the year ended July 31, 2011.
"I am pleased with the success we have had during the year enhancing our ActiveMine(TM) business and providing a product that our customers can rely on," said Jonathan Emanuel, President and CEO.
The Corporation incurred a net loss of $722,890 or $(0.06) per share during the year ended July 31, 2011, as compared to a net loss of $4,299,079 or ($0.40) per share for the year ended July 31, 2010. The significantly lower loss was attributed to higher gross profit and reduced administrative costs.
"It is rewarding to see the success we had as a business during the year improving our margins and reducing our operational costs," said Graham Warren, CFO. "We will continue to focus heavily on maintaining margins and keeping operating costs in line with our level of business."
About Active Control Technology
Active Control Technology is involved in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries. The Corporation has two product lines: ActiveMine(TM), a new fully integrated wireless and/o r fiber communications and locating technology for underground coal mines, and ActiveSecure(TM), a family of wireless products for the access control industry. The Corporation has recently acquired 100% of Powercart Systems Inc., a manufacturer of mobile power solutions in the retail, warehousing, courier, and mining industries. Located in Burlington, Ontario, Canada, Active Control Technology trades publicly on the TSX Venture Exchange under the symbol ACT. For more information, visit www.activecontrol.com.
The audited financial statements for the fiscal years ended July 31, 2011 and July 31, 2010, and management's discussion and analysis of the results of operations can be found at www.sedar.com.
Get more out of your mine.(TM)
Cautionary Note Regarding Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and, as such, are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the Company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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