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
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
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...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...