TORONTO, June 29, 2015 /CNW/ - Cencotech Inc. (CTZ
– TSX-V) today reports the results of operations for the first
six months and the second quarter of fiscal, 2015, ended
April 30th. All amounts
referenced herein are in Canadian dollars. Revenue for the second
quarter was $452,622 as compared to
$325,643 for the same period last
year. Net income for the quarter of $155,555 ($0.01 per
share) was recorded as compared to $11,013 ($0.00 per
share) for the three months ended April
30th, 2014.
Revenue for the first six months of fiscal 2015 was $799,194 as compared to revenue in the same
period last year of $595,367. The
Company recorded net income of $388,311 ($0.014
per share) in the six months ended April
30th, 2015 as compared to $121,490 ($0.00 per
share) in the same period last year.
K. Barry Sparks, the President of
the Cencotech, stated: "The Company is continuing to make progress
in moving new product sales opportunities forward, particularly
with respect to our Cirreon SaaS and related software offerings.
New customers for the Company's products are increasingly
requesting that products be offered on a "software as a service"
basis (SaaS), as opposed to purchasing a term licence for such
software from the Company. While as noted previously, this reduces
the recording of one time larger licence sales completions, we are
completing more deals on a contracted 'pay as you go' usage basis.
Total recurring contracted software revenue accounted for 81% of
total sales in the quarter ended
April 30, 2015.
As the bulk of the Company's sales are in US dollars, quarterly
fluctuations in the exchange rate between Canadian and US dollars
impact the reported income of Cencotech. Revenues are converted to
Canadian dollars when sales are completed and booked. Foreign
exchange adjustments are then required when payments are actually
received. This foreign exchange adjustment negatively impacted
stated Comprehensive Income in the Quarter ended April 30, 2015 by $31,955. However, the six month results include
foreign exchange gains of $57,280.
This compares to 2014 foreign exchange impacts on profitability of
($41,339) for the quarter and
$16,213 for the 2014 half year.
The Boards of Directors of the Corporation and its subsidiary,
NamSys, today also passed resolutions establishing long term bonus
plans to compensate and reward Namsys Bonus Employees (as
defined but excluding directors of both corporations), in the event
of a sale by NamSys to an arm's length purchaser of all or
substantially all of its assets or any other transaction pursuant
to which, directly or indirectly, all or substantially all of the
assets of NamSys become owned by an arm's length third party or a
transaction by Cencotech which has the same or similar effect.
Under these plans the Directors agree to use their reasonable best
commercial efforts, to the maximum extent permitted by law, so as
to cause an aggregate of 15% of the consideration payable in
respect of such a transaction to be paid to NamSys Bonus Employees
in such individual proportions as the directors in their sole and
absolute discretion shall determine."
Mr. Sparks continued "the Corporations' Boards of Directors feel
strongly that the NamSys employees who are both creating and
maintaining the NamSys mix of software products, should be properly
rewarded in the event of a fundamental disposal transaction. Having
said that, no such transaction is presently being considered."
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 may
contain 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.