SENSIO Technologies announced its second quarter 2012 financial results.
For more information visit: www.sensio.tv
Unedited press release follows:
SENSIO Reports its Financial Results for 2011-2012 Second Quarter
Positive signals at CES in line with Company’s investments and strategic efforts over past quarters
MONTREAL, QUEBEC–(Jan. 26, 2012) – SENSIO Technologies Inc. (SENSIO) (TSX VENTURE:SIO) today reported its financial results for the second quarter of fiscal year 2011-2012. SENSIO’s sales totalled $109,702, most of which came from the consumer market, while the loss for the quarter remained stable at $1,188,779. SENSIO took advantage of the second quarter to make important strategic strides in each of its lines of business.
“During this quarter, we pursued efforts to add value to our format in various markets,” commented Nicholas Routhier, President and CEO. “What we’ve been starting to see since the beginning of 2012 is the coming to fruition of long-term projects; the launch of 3DGO! and the announcements with TCL and Séquence are tangible proof of this. Early results in 2012 are positive, which augurs well for the third and fourth quarters. Had the presentation of the Rugby World Cup final not been cancelled, this quarter’s results would have met our revenue expectations. In this context, we are satisfied with our results, positive about our strategic positioning and enthusiastic about the future.”
Second Quarter Highlights
• An increase in licence revenues from the consumer market, from $1,541 in the second quarter of last year to $61,226 in the second quarter of this fiscal year.
• New SENSIO technologies unveiled aimed at the professional market at the IBC broadcasting trade show held in Amsterdam, Holland.
• Diana Cantú, a digital-cinema industry veteran, hired as Vice-President, Business Development – Live 3D.
• Integration of SENSIO® Hi-Fi 3D technology in Marvell chips intended for 3DTVs.
The Live 3D Market – Concrete initiatives to stimulate growth
Revenue from the Live 3D line of business decreased, from $83,149 in the corresponding period last year to $24,208 in this quarter. The decrease can be explained in particular by the Rugby World Cup cancellation.
“Even though circumstances beyond our control had an adverse impact on Live 3D revenue in the second quarter, we have continued to develop many other projects for the subsequent quarters and we believe that they will contribute to the performance of this line of business,” said Mr. Routhier. “The announcement of an agreement with Séquence, a French company, to present a series of cultural events in our growing network of SENSIO® 3D Live certified movie theatres, is a recent example of our Live 3D development strategy. Finally, the hiring last November of Diana Cantù, a recognized expert in the field of digital cinema, as Vice-President, Business Development – Live 3D, shows our commitment to our undertaking to achieve our objectives for this market, and we are thrilled to have her on our team.”
The Consumer Electronics Market – The trend continues
On the consumer side, SENSIO increased its revenue significantly compared to sales one year earlier. Revenue rose from $1,541 for the second quarter of the previous fiscal year to $61,226 for the quarter ended November 30, 2011, and amounted to $148,726 for the first six months of the year. This revenue came from the sale of licences for SENSIO® Hi-Fi 3D and SENSIO® S2D Switch technologies and the integration of those technologies into the chip systems of computer chip manufacturers.
“With the launching of the M-Series, the Black Friday sales and the Holiday sales, we are expecting the Vizio sales volumes to be more significant and we believe that the next quarter will be more positive,” said Mr. Routhier. “Meanwhile, our strategy for adding value to the SENSIO format through greater content availability is coming to fruition with 3DGO!, our video-on-demand service which will be available this spring. This new service meets a real market need and adds value for manufacturers. The reactions received and the interest shown in 3DGO! at the recent Consumer Electronics Show in Las Vegas are extremely encouraging.”
Professional Market – Ongoing commitment and steady efforts towards sustainable development of the professional sector
The professional line of business generated $24,268 in the quarter ended November 30, 2011, compared to $31,424 in the quarter ended November 30, 2010. The expansion of SENSIO’s technology offer in the last year led to an increase in the level of revenue in the first six months of the period.
“For SENSIO, the professional sector remains a fundamental market in a context where the broadcast of 3DTV programs is still limited,” said Mr. Routhier. “We are still committed to developing this line of business, considering its long-term strategic importance, but our revenue expectations are conservative. However the positive reception for our new technologies when they were unveiled at the IBC in Amsterdam last September confirms that SENSIO is on the right track for positioning itself sustainably in this market.”
Summary of Financial Results
In the second quarter of fiscal 2012, the Company posted revenues of $109,702 compared to $116,114 in the comparative second quarter, a decrease of $6,412 or 5.5%. The decrease in revenue from Live 3D was offset by an increase in revenue from the consumer line of business. In the quarter ended November 30, 2011, the Company earned a gross profit of $105,479 or 96.2% of its revenue compared to $103,378 or 89% of its revenue in the previous period.
During this quarter, the Company’s R&D expenses decreased by 1.6%, from $204,592 to $207,857 for the comparative quarter of the previous year. Selling expenses totalled $604,559 compared to $580,351 in the corresponding quarter of the previous year, an increase of $24,208 or 4.2%. Administrative expenses remained stable at $434,120 versus $438,669 the previous year.
SENSIO’s net loss for the quarter ended November 30, 2011 amounted to $1,188,779 ($0.0226 per share) compared to $1,172,978 ($0.0227 per share) as at November 30, 2010.
For the six months ended November 30, 2011, the Company recorded a net loss of $2,159,969 ($0.0412 per share) compared to $1,581,132 ($0.0306 per share) as at November 30, 2010. This increase can be explained by the factors described above, which are intended to make SENSIO a major industry player offering a multitude of technologies to its potential customers in the coming years.
| Principal Financial Information | |||||||||||
| Quarters ended | Six-month ended | ||||||||||
| November 30 | November 30 | ||||||||||
| Unaudited | Unaudited | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||
| Sales – 3D Live | $ | 24,208 | $ | 83,149 | 142,515 | $ | 711,538 | ||||
| Sales – Consumer | 61,226 | 1,541 | 148,726 | 4,699 | |||||||
| Sales – Professional | 24,268 | 31,424 | 68,736 | 31,424 | |||||||
| Gross profit | 105,479 | 103,378 | 309,311 | 728,018 | |||||||
| Net loss fully diluted | (1,188,779 | ) | (1,172,978 | ) | (2,159,969 | ) | (1,581,132 | ) | |||
| Net loss per common share | $ | (0.0226 | ) | $ | (0.0227 | ) | (0.0412 | ) | $ | (0.0306 | ) |
| Weighted average number of shares | 52,487,797 | 51,595,949 | 52,487,251 | 51,595,949 | |||||||
For more details, please consult the Management Discussion and Analysis report and the Financial statements for the referenced quarter on SENSIO’s 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.
SENSIO’s technologies are the object of patents and intellectual property protection proceedings worldwide. SENSIO is listed on the Toronto TSX Venture Exchange (SIO).