TORONTO, Jan. 26, 2012 /CNW/ - LOREX Technology Inc. ("LOREX" or the
"Company") [TSXV: LOXV] today announced results* for the three and
twelve month periods ended September 30, 2011.
The Company is very pleased to announce that revenue increased by $15.9
million or 34% to $62.7 million and earnings before taxes increased by
$2.1 million or 60% to $5.5 million for the fiscal year ended September
Revenue during the fourth quarter ended September 30, 2011 grew by 40%
or $5.3 million over the prior year to $18.6 million, when compared to
$13.3 million in 2010. The Company's EBITDA for the quarter was $2.0
million compared to $1.9 million in 2010.
Fourth quarter 2011 operating expenses include increased marketing,
sales, and operations costs proportionate to the Company's growth
pattern; stock-based compensation expenses relating to stock options
granted in the quarter totaling $0.2 million (nil in 2010); and new ERP
support costs and IFRS conversion-related costs (nil in 2010).
"We are extremely pleased with our record setting operating results
achieved during fiscal year end 2011," stated Chairman and CEO Reuben
Klein. "We reported 34% growth in our top line revenues while at the
same time maintaining gross profit margin percentage at the same level
of 2010. Furthermore, our EBITDA for the year grew by 48% when
compared to 2010 and we are delighted to report to shareholders that we
have now completed our twelfth consecutive quarter of positive EBITDA."
"Our growth during the year can be attributed to several factors
including industry trends and Company specific actions. First and
foremost, National and International demand for "Do it Yourself" (DIY) video security solutions continues to grow at
double digit annual levels. As a global leader in this market, we are
extremely well positioned to capture a large chunk of that demand and
continue to do so. In addition, during 2010 we recognized a growing trend in our Lorex brand consumer
preferences moving towards lower priced, high quality solutions. Our
continually evolving innovative product lines enabled us to quickly and
methodically respond to this changing purchasing behavior and thus we
were able to capture additional volume away from our competitors in our
plug and play products as well as faster product turnover at the retail level. Our innovative product
development continues to be recognized both by consumers and the
industry and in January 2012, the Company was honoured with its 6th International Consumer Electronic Show engineering and design award for
the new Lorex Live Connect2 Home and Family Wireless Video Monitoring
System. This dedicated 'Plugged into Skype™' gateway enables remote
viewing over any Skype™ compatible device.
In addition, during the year, awareness of our Digimerge branded
professional products continued to grow, aiding in Lorex's top line
growth. As we enter 2012, we expect continued growth for both our
Lorex and Digimerge branded products this year and beyond," continued
Highlights of the three and twelve month operating results are as
(Thousands of US $, unless otherwise noted)
Three months ended
Twelve months ended
Earnings before interest, taxes, amortization **
Earnings before income taxes
Earnings per common share, basic
Earnings per common share, diluted
Weighted average number of shares -basic
Weighted average number of shares - diluted
*Unaudited financial information is available at www.sedar.com.
**EBITDA is not a measure of performance under Canadian GAAP. EBITDA
should not be considered in isolation or as a substitute for profit nor
as a measure of operating performance or profitability.
"We are pioneers and leaders of do-it-yourself video security solutions,
and we continue to innovate by offering secure, internet-connected plug
and play video technology to our customers. We believe that the new
look, intuitive operation and ease of remote connectivity will cater to
the growing demand from consumers. Our record sales and earnings this
year will help us continue to build a stronger balance sheet and
improve our working capital position. We will continue to increase our
marketing and product development initiatives in 2012, which is
expected to continue to contribute to our growth and profitability",
concluded Mr. Klein.
The Company projects 2012 revenues to be in the $66 to $70 million
About LOREX Technology Inc.:
LOREX Technology Inc. ('LOREX') (TSXV:LOX.V) provides businesses and
consumers with leading edge video surveillance security solutions and
sells its products under the LOREX and Digimerge brands. The LOREX
brand, which caters to both small business and consumer markets, is
available in thousands of retail locations across North America. The
Digimerge division distributes its products through major distributors
in North America. Both brands concentrate on the sale of wired,
wireless and IP security surveillance and monitoring equipment
including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and
Strategic Vista Corporation Limited, Hong Kong.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy of accuracy of this release.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements that may be deemed
"forward-looking statements". Forward-looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Forward-looking statements in this press
release relate to the Company's projected revenue. The forward-looking
information reflects predictions and does not in any way reflect a
guarantee. Factors which could cause actual results to differ
materially from current projections include, among other things:
competitive conditions in which the Company participates; changes in
consumer spending; general economic conditions and normal business
uncertainty; customer preferences towards product offerings; the
occurrence of a pandemic or other catastrophic event which could create
shortages of labour, products or services required to operate the
business profitably; fluctuations in foreign currency exchange rates;
changes in the Company's relationships with its suppliers. The Company
cautions that this is not an exhaustive list of factors that may affect
the forward-looking information contained in this press release.
Potential investors and readers are urged to give careful consideration
to all of these factors in evaluating any forward-looking information
and are cautioned not to place undue reliance on such information.
While the Company believes that its projections are reasonable, results
predicted in this forward-looking information may differ materially
from actual results. The Company disclaims any obligation to update
forward-looking information, except as may be required by law.
SOURCE LOREX Technology Inc.
For further information:
Chairman and Chief Executive Officer
LOREX Technology Inc.
Phone: (905) 946-8589, extension 120