The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

EcoSynthetix Announces Preliminary Fourth Quarter Revenue

Wednesday, December 14, 2011

EcoSynthetix Announces Preliminary Fourth Quarter Revenue07:00 EST Wednesday, December 14, 2011 BURLINGTON, ON, Dec. 14, 2011 /PRNewswire/ - EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that produces a family of commercially proven bio-based products, today announced that it expects revenue for the fourth quarter ending December 31, 2011 to be approximately $3.2 to $3.5 million compared to $5.9 million during the same quarter in 2010. The change in revenue is due to significantly reduced sales to a major customer in Asia and customers reducing their raw material inventories due to general market weakness in the paper and paperboard industry. "As a supplier of engineered biomaterials for the paper coating process, our sales this quarter are a direct reflection of the challenges faced by our customers to gauge demand for their products," said John van Leeuwen, Chairman and CEO of EcoSynthetix. Recent announcements by a number of the global top 20 paper and paperboard companies suggest that economic uncertainty has resulted in a reduction in raw material inventories, layoffs and plant closures, with some companies suggesting they may temporarily shutter some capacity for Q1 2012. "While this is a challenging period for paper and paperboard companies, the same industry conditions that have contributed to our weaker top-line this quarter are those that should ultimately support demand for our lower-cost products. Our value proposition remains strong, lower cost bio-based polymers with less volatile pricing than petroleum-based polymers. We continue to build on our direct and channel sales capabilities and our mill trial activity is at record levels because the top players in this industry know that lasting changes to their cost structures must be made," van Leeuwen said. The preliminary revenue expectation in this news release is an estimate and may change upon completion of the final analysis of the fourth quarter. About EcoSynthetix Inc. (www.ecosynthetix.com) EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, ECOSPHERE® BIOLATEX® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry. Forward Looking Statements Certain statements in this Press Release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including the factors identified in the "Risk Factors" section of the Company's supplemented prospectus dated July 27, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward looking statements. SOURCE EcoSynthetix Inc.For further information: <p> </p> <table border="0"> <tr valign="top"> <td align="left"> EcoSynthetix Inc.<br/> John van Leeuwen<br/> Chairman & Chief Executive Officer<br/> Phone: (289) 288-5010<br/> E-mail: <a href="mailto:jvanleeuwen@ecosynthetix.com">jvanleeuwen@ecosynthetix.com</a>   </td> <td align="right">   </td> <td align="right">   </td> <td align="right">   </td> <td align="right">   </td> <td align="left"> Investor Relations<br/> Ross Marshall<br/> TMX Equicom<br/> Phone: (416) 815-0700 (Ext.238)<br/> E-mail: <a href="mailto:rmarshall@equicomgroup.com">rmarshall@equicomgroup.com</a> </td> </tr> </table> <p>   </p>