TORONTO, Feb. 20, 2013 /CNW/ - Cencotech Inc. (CTZ -
TSX-V) announced today the results of operations for the fiscal
year ended October 31st,
2012. All amounts referenced herein are in Canadian dollars.
Revenue for the fourth quarter of 2012 was $275,609 as compared to $610,504, for the same period last year. A profit
of $10,500 ($0.00 per share) was recorded for the three
months ended October 31st,
2012 as compared to $199,657
($0.01 per share) for the same period
last year.
Revenue from operations for the twelve months
ended October 31st, 2012
was $1,011,273 as compared to
$1,339,088 in fiscal 2011. Net loss
from operations for fiscal 2012 was $143,150 ($0.01 per
share) as compared to a profit of $18,033 ($0.00 per
share) in fiscal 2011.
K. Barry Sparks,
the President of Cencotech stated "The somewhat lower sales and
lack of profitability would usually indicate the absence of success
in selling the Company's products. This is not the case this year
with Cencotech and its subsidiary, Namsys Inc. We noted in mid-2012
that increasingly we are selling products on a "software as a
service" (SaaS) basis rather than selling a term license to the
software. Over time this will smooth out the "lumpiness" in
reported revenue and earnings on a quarterly basis. But, in the
transition period, we no longer enjoy the recording of larger one
time License sale completions, even though we are completing more
deals on a "pay as you go" software usage basis.
In essence Namsys has refreshed and updated its
hallmark CC-32 Currency Controller product by segmenting,
separating and updating the functionality into discrete units.
These units branded as the Cirreon Group of applications are hosted
by Namsys and sold on a SaaS basis. From a user's standpoint,
applications can be prioritized and implemented based on what is
most important to their organization. Also with the hosted or
"cloud" offering a user does not have to worry about upgrading
computer systems to take advantage of the functionality of the
products. As well by taking "smaller bites" the wholesale
retraining of personnel to utilize the full benefits of CC-32 can
be stretched out over time, as additional segments of the Cirreon
applications are added. A further benefit to users of the Cirreon
applications is that there are little or no Capital Costs to
implementation. SaaS results in all the cost being Operating in
nature. This also opens up more markets, particularly with large
retailers.
In conclusion we are pleased with the market
acceptance of the Cirreon applications and as we complete the
transition to selling products as "services" as opposed to
licenses, revenue will be more predictable and should be
sustainable to the upside quarter over quarter. The
affordability/ease of installation of the offerings, as opposed to
large upfront user fees should also hold us in good stead going
forward."
Cencotech Inc. products are designed to bring
efficiency to the processing of currency and other value
instruments in financial institutions, large retailers, public
transportation operations and the gaming industry. Cencotech's
proprietary software products for this market are
"open-architectured" and have been developed to interface with
clients' legacy systems.
The TSX Venture Exchange has neither approved nor disapproved
of the information contained in this release. This Media Release
contains forward-looking statements, which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual
events could differ from those projected herein and depend on a
number of factors including the success of the Corporation's sales
strategies.
SOURCE CencoTech Inc.