OTTAWA,
April 25, 2012 /PRNewswire/ -
Seprotech Systems Incorporated (TSXV: SET) ("Seprotech" or the
"Company") announces the following unaudited results for the three
and six months ended February 29,
2012 with comparative unaudited results for the equivalent
periods in fiscal 2011.
|
Three Months
Ended
February 29 |
Six
Months Ended
February 29 |
|
2012 |
2011 |
2012 |
2011 |
|
$000 |
$000 |
$000 |
$000 |
Revenue |
1,703 |
495 |
2,601 |
1,519 |
Gross Margin |
352 |
181 |
654 |
424 |
Net Loss |
(339) |
(346) |
(493) |
(583) |
Loss per share |
(0.01) |
(0.01) |
(0.01) |
(0.01) |
While second quarter 2012 revenues improved
significantly, margins deteriorated as a result of the strong sales
initiative, cost over-runs on some projects, and the different
pricing structure associated with the previously announced
Saudi Arabia contract, which was
primarily a flow-through consulting contract to WESA, with a small
margin to Seprotech, plus a limited amount of consulting services
provided by Seprotech. Strong revenue growth from sales of water
and wastewater systems more than offset slight declines in parts
& service and military contract revenues, the latter being
substantially a timing issue on revenue recognition.
Operating costs were comparable with both the prior
quarter and the equivalent period in 2011, these levels being
better supported by the strong growth in revenues.
The net loss of $(339) in the quarter and $(493) in the six months is a slight improvement
over the comparable periods in 2011.
"Since my appointment at the beginning of January,
Seprotech has been intensely focused on building sales in all
segments of the business," said Harry
Marshall, President of Seprotech. "We have added
substantially to the sales, technical, and support staff, and have
begun to partner with customers and suppliers to improve the reach
of our sales team. Inevitably the costs associated with this
type of growth orientation will hit margins at first, as was
evident in the second quarter's results, but the improvement in
both sales and back orders indicates the market for our products
and services is expanding, supporting our new strategy."
The company also announced an agreement to engage
IRonside Investor Relations (IRonsideIR), a full-service,
Toronto-based communications firm,
to provide investor relations and public relations services.
IRonsideIR's team will implement a strategic outreach program to
increase awareness of Seprotech's portfolio of wastewater and water
treatment solutions, via IRonsideIR's proprietary database of
media, portfolio managers, analysts, and investors. The
12-month program will cost $3,000 per
month for the initial three months and $6,000 per month thereafter, plus 500,000 options
(subject to regulatory approval) priced at $0.10 with a term of three years, vesting one
third each year for three years. For more information about
IRonsideIR, please visit the company's website at
www.ironsideir.com.
About Seprotech:
Seprotech is a provider of pre-engineered water and
wastewater treatment solutions to the municipal/land development,
resource sector and military market place, including Reverse
Osmosis water purification systems, ROTORDISK® biological sewage
treatment package plants and CrystalBlueâ„¢ membrane-based water
recycling systems.
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. The TSX Venture Exchange has neither
approved nor disapproved of the information contained herein. Some
of the statements in this press release, including those relating
to the Company's strategies and other statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "expects", "anticipates",
"intends", "plans", "believes", "estimates" or similar expressions,
are forward-looking statements within the meaning of securities
laws. Forward-looking statements include, without limitation, the
information concerning possible or assumed future results of
operations of the Company. These statements are not historical
facts but instead represent only the Company's expectations,
estimates and projections regarding future events. The Company does
not undertake any obligation to update or release any revisions to
these forward-looking statements to reflect events or circumstances
after the date of this presentation or to reflect the occurrence of
unanticipated events, except as required by law.
SOURCE Seprotech Systems Incorporated