Seprotech announces second quarter fiscal 2012 results and operational update
April 23 2012 - 2:15PM
PR Newswire (Canada)
OTTAWA, April 25, 2012 /CNW/ - Seprotech Systems Incorporated
("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 Six Months Ended February 29 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. Seprotech
Systems Incorporated CONTACT: Mr. Ian W. Malone, CFOTel: (613)
523-1641Fax: (613) 731-0851
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