LOREX ANNOUNCES Q1 2011 RESULTS

TORONTO, Feb. 28 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company") (NEX: LOX.H) announces results* for the three month period ended December 31, 2010. 

Highlights of the three month operating results are as follows:

(Thousands of US $, unless otherwise noted)

  Three months ended
December 31
2010 2009
   
Revenue $16,245 $10,499
Earnings before interest, taxes, amortization ** 2,102 465
Earnings before income taxes 1,984 244
Net earnings 1,805 137
Earnings per common share, basic $0.06 $0.00
Earnings per common share, diluted $0.04 $0.00
Weighted average number of shares - basic 31,290,278 30,960,350
Weighted average number of shares - diluted 43,790,278 43,460,350

*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 Net Earnings nor as a measure of operating performance or profitability.

Commenting on the results for the three month period ended December 31, 2010, Chairman and CEO Reuben Klein stated: "despite the economic challenges, we were able to significantly increase our first quarter revenues over the same prior year period, which resulted in our profitable trend continuing in the first quarter of fiscal 2011. Our revenue growth was achieved by providing more competitively priced do-it-yourself solutions and a line of lower priced plug-and-play products. The continuing growth in demand for our Digimerge products and the introduction of our LIVE Snap wireless video home monitor also contributed to our revenue growth."

"The strong results for the first quarter have improved our working capital and allowed us to further reduce our bank indebtedness. The Company's working capital increased by $2.0 million during the quarter which will allow us to take advantage of operational opportunities that may arise. At December 31, 2010, the Company's bank indebtedness was $1.6 million as compared to $2.7 million and $6.2 million at September 30, 2010 and 2009, respectively."

"Fiscal 2011 is off to a tremendous start with the strongest quarterly earnings yet as a company. Although we don't expect to replicate these results in the second and third quarters, our outlook for the balance of 2011 continues to be positive as we expand our product offerings."

About LOREX Technology Inc.:

LOREX Technology Inc. ('LOREX') (NEX: LOX.H) 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 and in the United Kingdom. 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 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.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues of the Company and the success of product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Company.

SOURCE LOREX Technology Inc.

For further information:

Reuben Klein
President and Chief Executive Officer
LOREX Technology Inc.
Phone: (905) 946-8589 ext 120
reuben.klein@lorexcorp.com
www.lorextechnology.com

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LOREX Technology Inc.

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