TORONTO, Sept. 23, 2015 /CNW/ - Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first nine months and the third quarter of fiscal 2015, ended July 31st. All amounts referenced herein are in Canadian dollars. Revenue for the third quarter was $452,487 as compared to $328,792 for the same period last year. Net income for the quarter was $261,211 ($0.01 per share) as compared to $61,159 ($0.00 per share) for the three months ended July 31st, 2014.
Revenue for the first nine months of fiscal 2014 was $1,251,681 as compared to revenue in the same period last year of $924,159. The Company recorded net income of $649,522 ($0.024 per share) in the nine months ended July 31st, 2015 as compared to $182,649 ($0.01 per share) in the same period last year.
K. Barry Sparks, the President of Cencotech, stated; "As reported previously, the Company is continuing to make progress in moving new product sales opportunities forward, particularly with respect to our Cirreon (SaaS) and related software offerings. New customers for the Company's products are increasingly requesting that products be offered on a "software as a service" (SaaS) basis, as opposed to purchasing term licenses for such software from the Company. While this reduces the recording of one time larger license sales completions, we are completing more deals on a contracted 'pay as you go' usage basis. Recurring contracted software revenue of $321,491 accounted for 71% of total sales in the quarter ended July 31st, 2015, as compared to $241,872 in the same period last year."
Mr. Sparks continued; "While sales in the quarter ended July 31st, 2015 were approximately the same as those recorded the previous quarter, this flattening of sales in the summertime is not unusual. Our experience in this market is that many customers choose not to make changes in their processes during the summer months, when many members of their staff are vacationing. The Company's order book for the fourth quarter is in good shape. Further, the reported income for the July 31st, 2015 quarter was enhanced by foreign exchange earnings in the period of $22,831. This compares to FX losses in the April 30th, 2015 quarter of $31,095 and FX losses in the July 31st, 2014 quarter of $4,143.
We are pleased with the progress being made to roll out more product and particularly with the market's adoption of our Cirreon offerings. We remain optimistic for increasing sales and profitability growth going forward."
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, retailers, public transportation operations and the gaming industry. Cencotech's proprietary software products for this market are "open-architected" and have been developed to interface with clients' legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release may contain forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation's sales strategies.
SOURCE CencoTech Inc.
For further information: Mr. K. Barry Sparks, President, (416) 369-6081, firstname.lastname@example.org