|By Marketwired .||
|April 29, 2014 04:00 PM EDT||
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
YouTube : http://www.youtube.com/sensio3dtech
Chief Financial Officer
+1 514 846-2022 x17
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
Jan. 21, 2017 07:45 AM EST Reads: 2,438
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
Jan. 21, 2017 07:30 AM EST Reads: 1,290
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
Jan. 21, 2017 07:15 AM EST Reads: 928
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place 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. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Jan. 21, 2017 06:45 AM EST Reads: 1,946
SYS-CON Events announced today that Enzu 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, 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
Jan. 21, 2017 06:30 AM EST Reads: 1,654
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, discussed the best practices that will ensure a successful smart city journey.
Jan. 21, 2017 06:00 AM EST Reads: 2,071
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Jan. 21, 2017 05:30 AM EST Reads: 3,551
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Jan. 21, 2017 05:00 AM EST Reads: 3,010
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Jan. 21, 2017 05:00 AM EST Reads: 4,038
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Jan. 21, 2017 03:45 AM EST Reads: 1,988
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors an...
Jan. 21, 2017 02:30 AM EST Reads: 5,042
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jan. 21, 2017 02:30 AM EST Reads: 6,118
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 ...
Jan. 21, 2017 02:15 AM EST Reads: 5,364
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Jan. 21, 2017 02:00 AM EST Reads: 5,820
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Jan. 21, 2017 01:30 AM EST Reads: 6,566