SEPROTECH ANNOUNCES FIRST QUARTER FISCAL 2011 RESULTS
May 13 2011 - 12:29PM
PR Newswire (Canada)
OTTAWA, May 13 /CNW/ -- OTTAWA, May 13 /CNW/ - Seprotech Systems
Incorporated (TSX-V: SET; "Seprotech" or the "Company") announces
the following unaudited results for the first quarter of fiscal
2011 with comparative unaudited results for the first quarter of
fiscal 2010, and summary audited results for the fiscal year ended
August 31, 2010. Three Months Year Ended Ended August 31 November
30 2010 2009 2010 2009 $000 $000 $000 $000 Revenue 1,024 1,247
5,190 7,399 Gross Margin 244 578 2,056 2,220 Net Loss (237) (29)
(625) (3,110) Loss per share (0.01) (0.07) (0.01) (0.07) The first
quarter of the 2011 fiscal year ended November 30 2010 continued to
reflect lower than anticipated revenue contribution from the
Company's core wastewater treatment business unit. However,
operations continued to benefit from ongoing execution of the
repair contract for Department of National Defence reverse osmosis
water purification units, and from parts and service activities.
Revenues for the quarter from sales of rotating biological
contactors ("RBCs") increased from $155 in fiscal 2009 to $203, a
31% improvement. However, this comparison is against a low,
recessionary base and the bounce-back to pre-recession levels of
RBC sales has not been as quick as anticipated. The decline in
military contract revenues results largely from variances in timing
of delivery of units for refurbishment and does not represent a
contractual change in the amount of business. The Company had
staffed for a higher level of RBC business, which was not achieved,
and accordingly further cuts imposed on operating expenses were too
late and insufficient to offset the decline in consolidated
revenues and margins, resulting in a net loss for the quarter of
$237 compared with a net loss of $29 for the same period in 2009.
Comparative 2009 data has been changed to reflect discontinued
operations in 2009. As more fully described, in the Company's press
release dated May 10, 2011 the delay in completing the unaudited
quarterly financial statements resulted from management's detection
during the quarter of an overstatement of revenue by a material
amount with respect to its financial statements for the quarters
ended November 30, 2009, February 28, 2010 and May 31, 2010. The
overstatement resulted from over-billing a customer over a period
of approximately 12 months from July 2009. The delay in completing
the fiscal 2010 audit, and consequent delay in completing both its
annual and first and second quarters' 2011 required regulatory
filings has led to the imposition on the Company of cease trade
orders from the Ontario, British Columbia and Manitoba securities
commissions (respectively, the "OSC", the "BCSC" and the "MSC"). On
May 10, 2011 the Company completed its required annual regulatory
filings (audited financial statements for fiscal year ended August
31, 2011, related MD&A and officer certifications) and expects
to file its second quarter 2011 unaudited financial statements and
related filings on or before May 17, 2011. At that time the Company
intends to make application to the OSC for a full revocation of the
cease trade order. 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.
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Mr. Matthew Andersonbr/ Investor Relations,br/ Tel: (613)
523-1641br/ Fax: (613) 731-0851 /p
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