Press release from PR Newswire
Seprotech announces second quarter fiscal 2012 results and operational update
Wednesday, April 25, 2012
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|
|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.
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 CrystalBlue? 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
For further information: <p> Mr. Ian W. Malone, CFO<br/> Tel: (613) 523-1641<br/> Fax: (613) 731-0851 </p>