|By Marketwired .||
|January 23, 2014 04:00 PM EST||
MONTREAL, QUEBEC -- (Marketwired) -- 01/23/14 -- SENSIO Technologies Inc. ("SENSIO" or "the Company") (TSX VENTURE: SIO) presented today its second quarter financial results for 2013-2014. In the second quarter, Company's revenues had climbed to $440K from $203K in the same period last year. Second quarter revenues were reported at $130K, up $38K or 41% compared to the same quarter last year.
Second quarter losses this year equaled $1.2M, which is $153K more than second quarter losses last year. This is primarily due to the impairment of advances on royalties that had previously been paid to studios as part of 3DGO! operations. This non-monetary expense was recognized to reflect the unrecoverable portion of advance royalty payments based on the Company's assessment. That depreciation excluded, losses for the quarter amounted to $818K and operating expenses totaled $937K, a drop of $167K, or 16.5%, compared to the same quarter in the previous year. This is the direct result of the cost-cutting program implemented by SENSIO.
"In the second quarter, we had to recognize a depreciation in the advances on royalties paid to certain studios. This contributed to the rise of our costs and our quarterly loss, but it hasn't impacted our liquidities," said Nicholas Routhier, President and Chief Executive Officer. "The significant investment in content was needed to launch 3DGO! and to attract new customers, both manufacturers and consumers. In fact, that investment is what led to the announcement with Panasonic last quarter. We're currently renegotiating content distribution rights with the studios so that advances reflect existing and projected volumes for 3DGO!. We're also very much encouraged by the increase in movie rentals and by the interest that 3D electronics manufacturers have shown in 3DGO!. With the planned addition in the fourth quarter of Panasonic 3DTVs, WiLAN's current negotiations with certain manufacturers and the potential addition of a new patent program, we believe we're on the right track to see interesting revenue growth in the upcoming quarters."
Highlights of the second quarter ended November 30, 2013
-- Agreement signed with Universal Studios to offer new 3D titles on 3DGO!; -- Two key European patents obtained for S2D Switch technology and Hi-Fi 3D; -- Closing of private placement announced June 4, 2013, for net proceeds of $2,670,000; -- Revenues of $129,522 in the second quarter and $440,001 in the first six months; the previous year saw $92,433 in the second quarter and $203,297 in the first six months; -- Decrease in operating expenses, excluding the cost of sales, of 16.4% compared to the same quarter last year and of 10.5% over the first six months of the fiscal year.
Home consumer market
In the second quarter of fiscal 2014, the Company recorded licence revenues of $111,294, up from $92,433 in the quarter ended November 30, 2012. The increase of $18,861 is due in large part to royalties from 3DTV sales over the quarter.
"We've been seeing slightly higher activity over the past few months, which is in line with our expectations," Routhier commented. "For a while now, we've noticed more articles claiming that 3DTV is dead because of things like ultra-high-definition television (UHDTV), also known as 4K. A recent study by Future Source challenges that claim, stating that the increase in 3DTV sales will continue into 2017, when they will reach over 155 million units. At the last CES, we demonstrated that 4K TVs, rather than threatening 3D, actually offer a superior 3D experience, and we firmly believe that SENSIO will benefit from that new trend. The anticipated growth of the 3DTV market opens the market up to technology licences and patents, and we're going to redouble our efforts in terms of patent licensing programs in the next quarters. We remain positive about the potential of the 3DTV market."
Content rental: growing number of users and rentals
In the second quarter, revenues from movie rentals jumped to $18,228 from $8,469 in the previous quarter, up $9,759 or 115%. In the same period, the number of 3DGO! users climbed from 3,089 to 8,019, an increase of 160%. At second quarter end, there were 2,693 active users, which was up from 894 at the end of last quarter. In the second quarter, active users rented 2,877 paid titles, compared to 1,354 in the first quarter.
"Our direct marketing efforts with Vizio are starting to pay off, especially among new buyers of 3DTVs," said Routhier. "Although we're having a harder time than expected in reaching existing 3DTV owners, we're seeing strong growth in the user rate among new buyers, which is a good sign for what's to come, because it means we're building a loyal user base for the future. After a few months of operation, we're encouraged by the gain in the number of people using the service and by the estimated rental repeat rate of active users since it leads us to believe that there's real demand for high-quality 3D VOD service. We've learned a lot in the last months, and we're going to use that experience to maximize the impact of having Panasonic 3DTV owners join us in the fourth quarter of this year. We remain very enthusiastic about the potential of 3DGO! across different platforms."
Summary of Financial Results
In the second quarter of fiscal 2014, the Company posted revenues of $129,522 compared to $92,433 in the quarter ended November 30, 2012, an increase of $37,089 or 40.1%. The higher licence revenues can be explained by an increase of $18,602 in royalty revenues resulting from agreements signed with CE manufacturers for SENSIO technologies. The launch of 3DGO! video-on-demand platform contributed as well by generating $18,228 during the quarter ($0 in the comparative quarter).
For the three months period ending November 30, 2013, the cost of sales amounted to $362,845 compared to $3,707 for the compared quarter one year ago. This increase of $359,138 is mainly attributable to the impairment of advance royalty payments of $345,397 incurred and paid previously to studios for operations related to 3DGO!. This non-monetary expense is recognized to reflect the advance on royalties that won't be recoverable according to the Company's estimation. These disbursements done in the past quarters gave credibility to the 3DGO! platform and allow ultimately the Company to sign an agreement with Panasonic. The management is confident that other manufacturers will follow in the coming quarters. The content rental royalties of $10,420 that diminished the advance royalty payments explained the increase as well.
If we exclude the cost of sales from the operating expenses for the quarter, the operating expenses were reduced of $180,735 or 16.4% when compared to corresponding quarter of the previous year. The selling expenses totalled $412,618 compared to $594,734 in the corresponding quarter the previous year, a decrease of $182,116 or 30.6%. Lower payroll, fees paid to consultants and traveling fees offset by higher costs for the launch of 3DGO! in the three-month period explains the variance.
The Company's research and development expenses amounted to $181,963 compared to $154,168 in the second quarter of the previous year, an increase of $27,795 or 18%. The increase is explainable by severances paid to two employees. The decision taken by the management was part of the cost-cutting program in order to reduce the Company's expenses.
Administrative expenses for the quarter ended November 30, 2013 amounted to $324,573 compared to $350,987 for the second quarter of the previous year, a decrease of $26,414 or 7.5%. This decrease is mainly explainable by a decrease of the depreciation assets expense.
SENSIO's net loss for the quarter ended November 30, 2013 amounted to $1,163,646 ($0.02 per share) compared to $1,010,819 ($0.02 per share) as at November 30, 2012.
Selected Financial information
--------------------------------------------------- Fiscal year 2014 ------------------------ T2 T1 --------------------------------------------------- Revenues 129 522 $ 310 479 $ Net loss (1 163 646)$ (729 917)$ Basic and diluted loss per share (0,02)$ (0,01)$ Basic and diluted weighted average number of shares 76 971 787 63 019 342 --------------------------------------------------- ---------------------------------------------------------------------------- Fiscal year 2013 ------------------------------------------------- T4 T3 T2 T1 ---------------------------------------------------------------------------- Revenues 76 267 $ 112 792 $ 92 433 $ 110 864 $ Net loss (976 170)$ (980 761)$ (1 010 819)$ (895 248)$ Basic and diluted loss per share (0,02)$ (0,02)$ (0,02)$ (0,02)$ Basic and diluted weighted average number of shares 63 019 342 63 019 342 60 696 110 52 512 544 ---------------------------------------------------------------------------- --------------------------------------------------- Fiscal year 2012 ------------------------ T4 T3 --------------------------------------------------- Revenues 90 651 $ 679 913 $ Net loss (1 322 159)$ (870 844)$ Basic and diluted loss per share (0,03)$ (0,02)$ Basic and diluted weighted average number of shares 52 487 797 52 487 797 ---------------------------------------------------
For more details, please see the Management Discussion and Analysis and the Financial Statements for the reference period on the SENSIO 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).
Caution Concerning Forward-Looking Statements
Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis of SENSIO for the quarter ended November 30, 2013. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
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.
Facebook : http://www.facebook.com/SENSIO3D
Twitter : http://twitter.com/SENSIO3D
YouTube : http://www.youtube.com/sensio3dtech
Chief Financial Officer
+1 514 846-2022 x17
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Feb. 19, 2017 03:45 PM EST Reads: 1,237
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
Feb. 19, 2017 02:45 PM EST Reads: 858
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
Feb. 19, 2017 02:30 PM EST Reads: 1,023
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
Feb. 19, 2017 02:30 PM EST Reads: 2,058
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
Feb. 19, 2017 02:15 PM EST Reads: 882
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 19, 2017 02:00 PM EST Reads: 869
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Feb. 19, 2017 01:45 PM EST Reads: 4,773
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Feb. 19, 2017 01:15 PM EST Reads: 677
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Feb. 19, 2017 12:45 PM EST Reads: 973
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Feb. 19, 2017 12:00 PM EST Reads: 595
Column Technologies exhibited at SYS-CON's @DevOpsSummit at Cloud Expo, which took place at the Javits Center in New York City, NY, in June 2016. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principals and help our customers meet today’s DevOps and Dig...
Feb. 19, 2017 12:00 PM EST Reads: 710
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Feb. 19, 2017 11:45 AM EST Reads: 948
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 19, 2017 11:30 AM EST Reads: 750
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
Feb. 19, 2017 11:30 AM EST Reads: 842
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Feb. 19, 2017 11:15 AM EST Reads: 1,650