SENSIO reports its financial results for first quarter 2012-2013
Conclusion of seven major agreements and decrease of financial loss despite a reduction in revenue
MONTREAL October 26, 2012 SENSIO Technologies Inc. today presented its financial results for the first quarter of fiscal year 2012-2013. During this quarter, the Corporation recorded revenues of $110,864 compared to $250,275 for the same quarter of the previous year, a decrease of $139,411 or 55.7%. This decrease is mainly due to the lack of Live 3D events compared to the previous year as well as management's decision to no longer actively promote professional video equipment sales. On the Consumer Electronics market, the recurring revenues of the Corporation remained stable. SENSIO also saw its net loss decrease by 6.64%, reaching $895,248 for the first quarter of 2012-2013.
"While we recognize that the revenues of this quarter were rather modest, we do not see these results as a fair reflection of the growth of the company and our game plan," said Nicholas Routhier, President and CEO. "We are extremely pleased with the strategic advances made over the last few months with the conclusion of not less than seven crucial agreements to our two major markets. We expect the impact on our revenues from these agreements will be felt starting this fiscal year. Now that these agreements are signed, we can channel our efforts toward pursuing our business plan and we are working to ensure the transformation of these agreements into revenues. We will pay particular attention to our partnerships with TCL and Hisense, the development of 3DGO!, and the deployment of our Autodetect technology among chip manufacturers. Currently, we are experiencing a highly stimulating period, and we are optimistic about the success of our business strategy and the realization of these expected positive results. "
Highlights of the first quarter ended August 31st, 2012
Integration agreements on SENSIO® Hi-Fi 3D and SENSIO® S2D Switch technologies in 3DTVs of the two main Chinese manufacturers: TCL and Hisense;
- First important licensing agreements to give access to 3D movies on 3DGO! with Starz Digital Media, National Geographic and Big Picture Digital Productions;
- Agreement with Christie Digital for the integration of SENSIO ® 3D Decoder in their SKA-3D digital processor for the Live 3D market;
- Front Row Networks and SENSIO signed an agreement to bring Live 3D content in movie theaters.
Live 3D Priority toseries of events and network deployment Revenues for the Live 3D for the first quarter amounted to $46,481 compared to $118,307 for the same quarter a year ago, a decrease of 60.7%. This decrease is mainly due to the presentation of the NBA Finals during the quarter ended August 31, 2011 while no Live 3D event has been presented during the current quarter. This decrease was partially offset by revenues following the integration of the SENSIO ® Hi-Fi 3D technology in a theatrical hardware product.
"Our action plan is clear; we will continue to work on series of events, which are the essence of our content strategy for this market, and the next development is expected to be the first pilot project with Séquence, said Richard LaBerge, Executive Vice-President and CBDO. "We strongly believe in the potential of this project and we made considerable progress since its announcement in January. Our recent partnership with Front Row Networks also fits within our strategy and will contribute to the geographic diversification of our content offerings. In addition, as demonstrated by our agreement with Christie, we continued our work of integrating SENSIO ® Hi-Fi 3D technology in as many products as possible in order to maximize the impact of our deployment of the SENSIO® Live 3D network. With a growing network of theaters, the widespread presence of our technologies and our first series of events in development, we are well positioned to revitalize the industry of Live 3D events in cinemas.
Consumer Electronics A widened influence
On the Consumer Electronics side, SENSIOs revenues fell from $87,500 from the first quarter of the previous period to $60,582 for the quarter ended August 31st, 2012, a decrease of 30.8%. This marginal difference can be explained by the signing of an agreement with a chips manufacturer during the comparative quarter last year while no new manufacturers have been added in this quarter."The numerous achievements of the past months confirm the relevance of our strategies on the Consumer Electronics market," said Mr. Routhier. "Each of the agreements signed during this quarter represents a significant milestone in our business development, especially the integration agreements with TCL and Hisense. Adding two of the largest Chinese manufacturers to our increasing list of clients provides additional validation of our SENSIO® Hi-Fi 3D technology, besides giving us the opportunity to penetrate the large and vibrant Chinese domestic market. These agreements were greatly facilitated by our integration on chip strategy as well as our content strategy via the upcoming 3DGO! service, which will also generate income directly, in addition to royalties from agreements with manufacturers. The initiatives undertaken by SENSIO in recent years are already paying off, and we believe that with the growing penetration of 3D televisions on the market, their transformation into significant sources of revenues should only be a matter of time. "
Summary of financial results
For the first quarter of fiscal year 2012-2013, SENSIO posted revenues of $110, 864 compared to $250,275 for the same quarter of the previous year, a decrease of $139,411 or 55.7%. Gross profit for the first quarter was $107 970 or 97.4% of its revenues compared to $203,832 or 81.4% of its revenues for the same period the previous year.
During this quarter, selling expenses amounted to $500,742 compared to $597,173 for the same quarter of the previous year, a decrease of $96,431 or 16.1%. Research and development expenses totalled $179,544 compared to $254,024 in the corresponding quarter of the previous year, a decrease of $74,480 or 29.3%. Administrative expenses amounted to $324,693 for the quarter ended August 31st, 2012 compared to $325,976 for the comparative quarter the previous year, a decrease of $1,283 or 0.3%.
SENSIOs net loss for the quarter ended August 31st, 2012 came to $895,248 (0.02 $ per share) compared to $958,940 (0.02 $ per share) as of August 31st, 2011, a decrease of $63,692 or 6.64%. This decrease can be explained by decisions taken by the Corporation to establish a balance between the funding of initiatives that will provide long-term revenues and reducing operating costs in order to ensure sufficient cash resources.
Selected Financial information
For more details, please consult the Management Discussion and Analysis report and the Financial statements for the referenced quarter on SENSIOs 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.
SENSIOs technologies are the object of patents and intellectual property protection proceedings worldwide. SENSIO is listed on the Toronto TSX Venture Exchange (SIO).