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SENSIO Reports its Financial Results for 2011-2012 Third QuarterA 65.6% increase in revenue and a 40.1% decrease in the loss for the Company (April 25, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 04/25/12 -- SENSIO Technologies Inc. (SENSIO) (TSX VENTURE:SIO) today reported its financial results for the third quarter of fiscal year 2011-2012. This quarter was definitely positive, with sales of $679,913, primarily from the consumer market, and a significant decrease in the loss, which amounted to $786,090.
"The efforts made and the work done by the SENSIO team in recent years to have our technologies and intellectual property recognized in our various markets are increasingly being rewarded," explained Nicholas Routhier, President and CEO. "This quarter was distinguished by the finalizing of agreements and alliances with major industry players, but we also made progress in our numerous other discussions and negotiations with potential business partners. We are confident that other agreements will follow as our expertise and the value of our products drive increasing awareness and customer adoption."
Highlights of the third quarter ended February 29, 2012
-- Samsung Electronics Co. Ltd. and SENSIO reach a patent licence agreement for SENSIO??S2D Switch technology; -- TCL and SENSIO announce a letter of intent for the integration of SENSIO??Hi-Fi 3D technology in 3DTVs; -- SENSIO announces the creation of a dedicated 3D video-on-demand service: 3DGO!; -- SEQUENCE SDP and SENSIO form an alliance to present a series of live 3D concerts; -- Marvell Technology Group Ltd. integrates SENSIO?? Hi-Fi 3D in its 3DTV chipsets; -- A 65.6% rise in revenue in the third quarter compared to the corresponding quarter the previous year; -- A 40.1% decrease in the net loss for the third quarter compared to the corresponding quarter the previous year.
The Live 3D Market - Priority on Event Series
Although the lack of live 3D event broadcasts and sales of single licences for the use of the technology caused revenues from this market to decrease in the quarter, the rollout of the SENSIO?? 3D Live network continued nonetheless, essentially in Europe. SENSIO prioritized the per event licence model in Europe, a risk-sharing strategy which facilitates network expansion by deferring payment for the technology until events are screened in SENSIO?? Hi-Fi 3D.
In particular, SENSIO and Sequence SDP, a French leader in the filming of live cultural events, announced that they had formed an alliance to present a series of live concerts in SENSIO?? Hi-Fi 3D. SENSIO also continued to investigate numerous other opportunities with various producers, including UFC (Ultimate Fighting Championship). On the heels of the success of last February's broadcast of its first live 3D event, UFC plans to follow up with quarterly events and foresees international distribution.
"We are continuing to focus on our content strategy and long-term agreements, like that one with Sequence SDP, with whom we have made great strides in recent months," says Routhier. "This association, which demonstrates our intent to focus on live cultural events, will increase the number of such events while helping to diversify content beyond sporting events. We are also in talks with artists and record producers to pursue the deployment of our strategy and the achievement of our goals for the Live 3D market. We are counting on the success of our content strategy to add value to our network and ultimately generate significant revenues in the Live 3D market."
The Consumer Electronics Market - Added Value Validated
Related to consumer business, SENSIO significantly increased its revenues, from $53,502 in the third quarter last year to $672,140 for the quarter ended February 29, 2012. This revenue, some of which is non-recurring, resulted from a higher volume of licence sales for SENSIO?? Hi-Fi 3D technology as well as of the SENSIO?? S2D Switch. Indeed, a patent licence agreement for the SENSIO?? S2D Switch was signed with Samsung Electronics Co. Ltd., as announced last February. In addition to the financial impact, this agreement represents tangible progress for the Company in terms of gaining recognition for the value of its intellectual property.
"Our presence in the consumer electronics market is steadily growing, and the agreement with Samsung and the letter of intent with China's TCL for the integration of our SENSIO?? Hi-Fi 3D technology are proof of this," says Routhier. "In addition to its strong international presence, TCL is one of the major TV manufacturers in China, and this association represents an important opportunity to penetrate the domestic Chinese market, a strategic priority for SENSIO, given the huge volume potential and the excitement for 3D in that country. This quarter therefore marks a turning point for SENSIO in the pursuit of our plan to expand in the consumer electronics market by positioning us in high-potential markets, which augurs well for future quarters."
3DGO! - Launch Set for Fall 2012
3DGO!, a video-on-demand service totally dedicated to 3D productions, sparked a great deal of enthusiasm when it was announced at the latest Consumer Electronics Show in Las Vegas in January. It is one of SENSIO's top priorities. After initial plans for a possible release in the Spring of 2012, the Company has announced a delay in the launch until Fall so as to address the enhanced security requirements of the major movie studios through tighter system integration.
"The interest of the major studios and manufacturers in 3DGO! is greater than ever," says Richard LaBerge, Executive Vice-President and Chief Marketing Officer. "They seek both quality and user- friendliness. Central to our strategy is the provisioning to our clients of a varied content library, including titles from the major studios. It is essential that this address the highest security needs of the industry. With the launch of 3DGO! service in the Fall, we plan to deliver the best 3D experience on the market."
Summary of Financial Results
For the third quarter of the 2012 fiscal year, the Company posted revenue of $679,913 compared to $410,651 for the corresponding quarter the previous year, an increase of $269,262 or 65.6%. In the quarter ended February 29, 2012, the Company earned a gross profit of $676,404 or 99.5% of its revenue compared to $405,626 or 98.8% of its revenue in the previous period.
In this quarter, the Company's selling expenses totalled $864,550 compared to $937,794 in the corresponding quarter the previous year, a decrease of $73,244 or 7.8%. Research and development expenses amounted to $193,255 compared to $375,734 in the comparative quarter the previous year, a decrease of $182,479 or 48.6%. Administrative expenses decreased by $50,616 or 12.6%, from $401,190 in the comparative quarter the previous year to $350,574 for the third quarter ended February 29, 2012.
SENSIO's net loss for the third quarter of 2012 came to $786,090 ($0.0150 per share) compared to $1,329,155 ($0.0256 per share) as at February 28, 2011.
For the nine-month period ended February 29, 2012, the Company posted a net loss of $2,946,060 ($0.0561 per share) compared to $2,910,287 ($0.0563 per share) as at February 28, 2011.
Principal Financial Information Quarters ended Nine-month ended End of February End of February Unaudited Unaudited 2012 2011 2012 2011 ---------------------------------------------------------------------------- Sales - 3D Live $ - $ 336,255 $ 142,515 $ 1,047,793 Sales - Consumer 672,140 53,502 820,866 58,201 Sales - Professional 7,773 20,894 76,509 52,318 Gross profit 676,404 405,626 985,715 1,133,644 Net loss fully diluted (786,090) (1,329,155) (2,946,060) (2,910,287) Net loss per common share $ (0.0150) $ (0.0256) $ (0.0561) $ (0.0563) Weighted average number of shares 52,487,797 51,991,054 52,487,432 51,724,019 ----------------------------------------------------------------------------
For more details, please see the Management Discussion and Analysis and the Financial Statements for the reference quarter on the SENSIO 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.
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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