Welcome!

News Feed Item

SENSIO Presents its 2013-2014 Third Quarter Financial Results

Increase of revenues, decrease of operational expenses and continued growth of 3DGO!

MONTREAL, QUEBEC -- (Marketwired) -- 04/29/14 -- SENSIO Technologies Inc. ("SENSIO" or "the Company") (TSX VENTURE:SIO) presented today its third quarter financial results for 2013-2014. After three quarters, the Company's revenues had climbed to $596K from $316K in the same period last year. Third quarter revenues were reported at $156K, up $43K or 38% compared to the same quarter last year.

For the third quarter, operational expenses amounted to $665K, a decrease of $433K or 39.4% versus the same period last year. This is the direct result of the cost-cutting program implemented by SENSIO. During the three-month period, the Company recognized an impairment of $340K of advances on royalties that had previously been paid to studios as part of 3DGO!(TM) operations. This non-monetary expense was recognized to reflect the unrecoverable portion of advance royalty payments based on the Company's assessment. That depreciation included, losses for the quarter amounted to $896K, a drop of $85K compared to last year's quarter. When we exclude the impairment expense, the loss amounted to $555K.

"As demonstrated by our results, the third quarter has been a turning point for SENSIO, said Nicholas Routhier, President and Chief Executive Officer. "The continuous growth of the number of 3DGO! users and rental revenue is encouraging, and the upcoming deployment on Panasonic 3DTVs in the United States will add a significant pool of potential new users in the near future. In parallel, our cost-cutting program has allowed us to significantly reduce our costs, and this has had a tangible impact during the first quarter. Moreover, our renegotiation efforts with studios regarding content distribution rights have already been fruitful, with the renewal of our deal with Disney, securing access to quality 3D movies for our service, under terms that better reflect our anticipated level of activity. Finally, the recent exercise of warrants combined to those confirmed and in process have added an additional 1,515,600$ to the cash position of the company, further solidifying our balance sheet. By taking into account the progression of 3DGO!, our patent licensing activities, our cost reduction efforts and the impact of our renegotiations with studios, we can say that we are getting closer to our objective of reaching a break-even point in regard to our treasury during the next financial year."

Highlights of the third quarter ended February 28, 2014


--  Revenues of $156,039 in the third quarter and $596,049 in the nine-month
    period compared to $112,792 in the third quarter and $316,089 in the
    comparative nine- month period; 
    
--  3DGO! revenues amounted to $37,938 up of 108.1% compared to previous
    quarter; 
    
--  Decrease in operating expenses, excluding the cost of sales, of 39.4%
    compared to the same quarter last year and of 20.4% over the nine-month
    period; 
    
--  Issuance of a Japanese patent related to frame rate conversion for
    3DTVs. 

Home consumer market

In the third quarter of fiscal 2014, licence revenues of the Company remained stable at $118,101 compared to $112,792 for the quarter ended February 28, 2013 an increase of $5,309. Royalty revenues received during the quarter from licensing continued to progress but this increase was offset by a decrease in revenues generated by the embedment of technologies in products. These ad-hoc revenues are subject to fluctuations from quarter to quarter.

"We anticipate a gradual reduction of the sales of Vizio 3DTVs over the course of the next year, following their decision not to produce any new models, which will have a negative impact on our licensing fee revenues", has commented Mr. Routhier. "We are focusing on the adoption of 3DGO! by more manufacturers, which will allow us to stimulate the adoption of our SENSIO Hi-Fi 3D technology and the payment of licensing fees related to the decoding of content in SENSIO Hi-Fi 3D. The Panasonic deployment represents a first step in that direction, and over the course of the next quarters, we aim to add more manufacturers in order to stimulate the growth of licensing revenues. We are therefore positive in regard to the progression of technology revenues in the future."

Content rental: continue growth in number of users and rentals

In the third quarter, revenues from movie rentals amounted to $37,938, an important rise when compared to the previous two quarters of activity of the service ($18,228 in the second quarter and $8,469 in the first quarter). In the same period, the number of 3DGO! users climbed from 8,019 to 16,191, an increase of 102%. At third quarter end, there were 6,425 active users, up from 2,693 at the end of last quarter. In the third quarter, active users rented 6,583 paid titles, compared to 2,877 in the previous quarter.

"The performance of 3DGO! over the course of the last quarter is extremely encouraging and we are delighted of the progression of the number of users every week," has declared Mr. Routhier. "Over the past few months, we have refined our marketing approach and our understanding of the needs and consumption habits of our users, which has been reflected in the activity rate of current users. We are still on target to launch with Panasonic during the current quarter, and thanks to our acquired experience with the Vizio launch, we are confident to be able to significantly increase the number of users of our service. Over the next quarters, our efforts will be concentrated on increasing our base of potential users by adding new manufacturers, and potentially expanding to new territories. We are very optimistic regarding the future progression of this important commercial activity."

Summary of Financial Results

In the third quarter of fiscal 2014, the Corporation posted revenues of $156,039 compared to $112,792 for the quarter ended February 28, 2013, an increase of $43,247 or 38.3%. The growth in 2014 revenue is mainly explainable by an increase of $37,783 in royalty revenues received during the quarter reduced by a decrease of $ 32,710 in revenues generated by the embedment of technologies in products. The launch of the 3DGO!(TM) video-on-demand platform contributed to $37,938 during the quarter ($0 in the comparative quarter).

For the three months period ending February 28, 2014, the cost of sales amounted to $372,455 in comparison to $2,052 for the compared quarter one year ago. This increase of $370,403 is mainly attributable to the impairment of advance royalty payments of $340,169 incurred and paid previously to studios for operations related to 3DGO!(TM). This non-monetary expense is recognized to reflect the advance on royalties that won't be recoverable according to the Corporation estimation. These disbursements done in the past quarters gave credibility to the 3DGO!(TM) platform and ultimately allowed the Corporation to sign agreements with Vizio and Panasonic. The management is confident that other manufacturers will follow in the coming quarters.

If we exclude the cost of sales from the operating expenses for the quarter, the operating expenses were reduced by $432,672 or 39.4% when compared to corresponding quarter of the previous year. The selling expenses totalled $378,737 compared to $552,706 in the corresponding quarter the previous year, a decrease of $173,969 or 31.5%. Lower payroll, fees paid to consultants, traveling fees and expenses for trade shows offset by higher costs for the launch of 3DGO!(TM) in the three-month period explains the variance.

The Company's research and development expenses amounted to $60,807 compared to $147,049 in the third quarter of the previous year, a decrease of $86,242 or 58.6%. The decrease is explainable by a lower payroll and by a higher R&D tax credit received compared to what was provisioned for last financial year.

Finally, administrative expenses for the quarter ended February 28, 2014 amounted to $225,801 compared to $398,262 for the third quarter of the previous year, a decrease of $172,461 or 43.3%. This decrease is mainly explainable by a reduction in salaries, professional fees and of the depreciation assets expense.

SENSIO's net loss for the quarter ended February 28, 2014, amounted to $895,874 or $0.01 per share compared to $980,761 or $0.02 per share as at February 28, 2013, which represents a decrease of $84,887 or 8.7%.

Selected Financial information


------------------------------------------------------
                          Fiscal year 2014            
               ---------------------------------------
                         Q3           Q2           Q1 
------------------------------------------------------
                                                      
                                                      
Revenues            156,039      129,522      310,479 
Net loss           (895,874)  (1,163,646)    (729,917)
Basic and                                             
 diluted loss                                         
 per share            (0.01)       (0.02)       (0.01)
Basic and                                             
 diluted                                              
 weighted                                             
 average number                                       
 of shares       89,719,342   76,971,787   63,019,342 
------------------------------------------------------

----------------------------------------------------------------------------
                                                                Fiscal year 
                               Fiscal year 2013                        2012 
               -------------------------------------------------------------
                        Q4          Q3          Q2          Q1           Q4 
----------------------------------------------------------------------------
                                                                            
                                                                            
Revenues            76,267     112,792      92,433     110,864       90,651 
Net loss          (976,170)   (980,761) (1,010,819)   (895,248)  (1,322,159)
Basic and                                                                   
 diluted loss                                                               
 per share           (0.02)      (0.02)      (0.02)      (0.02)       (0.03)
Basic and                                                                   
 diluted                                                                    
 weighted                                                                   
 average number                                                             
 of shares      63,019,342  63,019,342  60,696,110  52,512,544   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 February 28, 2014. 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
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
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...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, 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.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...