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

Contacts:
SENSIO Technologies
Eric Choquette
Chief Financial Officer
+1 514 846-2022 x17
[email protected]

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
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.