Welcome!

News Feed Item

SENSIO Presents Its 2013-2014 Second Quarter Financial Results

The number of 3DGO! registered users and movie rentals continue to grow in the second Quarter

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

LinkedIn : http://www.linkedin.com/company/337733?trk=tyah

YouTube : http://www.youtube.com/sensio3dtech

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...