Clemex Discloses Second Quarter Results for FY 2011

After 6 months, the Company declares a profit of $83,074, a net turnaround of $173,231
when compared to the previous fiscal year

Symbol:  CXG.A-TSXV
www.clemex.com
Shares Outstanding20 749 810

MONTREAL, Dec. 14 /CNW Telbec/ - Clemex Technologies Inc. (TSX Venture CXG.a), designer and manufacturer of Image Analysis systems and software for microscopy applications, announces today its quarterly results for the second quarter of FY2011 ending October 31th, 2010. For this second Quarter, sales reached $1,144,906 an increase of $119,847 or 11.6% when compared to the same period last year. For this last Quarter, the Corporation posts a Net Profit of $30,258 compared to a Net Profit of $50,871 for Q2 last year.

Gross Margin is at 61.5% for this quarter, slightly higher than for the same period last year at 59.6%. The Company was able to maintain a good profitability in spite of the significant increase in commercial expenses intended to sustain the development of business in some profitable market sectors. For the first six months of this fiscal year, commercial expenses have raised by approximately $80,000 as the Company attended several commercial trade shows. Clemex continues to be very active in Research and Development in view of the development and marketing of the new and innovative hematology instrument. Furthermore, the NRC-IRAP grant for the Hematology instrument development project to cover salary expenses ended during this Quarter.

FINANCIAL HIGHLIGHTS

  Second Quarter Six Months
 
Fiscal Year  2011 2010 2011 2010
 
    $ $ $ $
Sales 1,144,906   1,025,059   2,161,761   1,753,690  
Cost of Sales 441,101   414,153   818, 423   679,000  
Gross Margin 703,805   610,906   1,343,338   1,074,690  
  61.5%   59.6%   62.1%   61.3%  
Operating Expenses        
  Commercial Expenses 288,740   256,276   574,868   495,083  
  Administrative Expenses 203,544   177,064   374,808   346,081  
  R&D less Tax credits 120,375   68,907   198,809   152,791  
  Amortization 30,058   29,244   60,116   58,200  
  Financial Expenses 21,471   18,284   43,169   41,285  
  Net foreign exchange loss (gain)     9,359   10,260   8,494   71,407  
  673,547   560,035   1,260,264   1,164,847  
  
Net Profit / Loss 30,258   50,871   83,074   (90,157)  
  
Net Profit / Loss per share 0.001   0.002   0.004   (0.004)  

Over the last three months, the Company made several sales to strategic clients in the manufacturing sector in North America and abroad. Several sales were for the Clemex CMT.hd, an automated MicroHardness tester widely used in the Automotive and other manufacturing sector. North American clients in this past Quarter were Interstate McBee, (OH); Amsted rail (VA); Fleet Readiness Center East,  (NC); Fisher Barton Specialty Products, (WI) and to Flight Systems Electronics Group, (PA).  On the International side, the Company made important sales to Magna Powertrain in Mexico, DeHua Testing (China) and has also sold two Inclusions Rating Systems for the quantification of cleanliness in steel to POSCO in Korea.

Clement Forget, President and CEO of Clemex Technologies Inc. declared:

"We continue to benefit from the slow recovery of activity in the US manufacturing sector, mainly from the automotive industry. Sales to this sector over this past Quarter came mostly from our CMT.hd, an Automatic MicroHardness tester, widely used for testing heat treated parts in the automotive manufacturing.  On the International side, sales were made to the Steelmakers in Korea and China, countries where revival of activity in the steelmaking industries seems to be well on its way." He continued; "A certain revival of market is now discernible and will contribute to the increase in sales of our traditional market sectors. Furthermore, our growth perspectives have never been better on short and longer term. The new exclusive Canadian distribution agreement with Leica Microsystems beginning in March 2011 will be very positive on our sales growth. We anticipate sales increase for both short and long terms to come."  

About Clemex Technologies, Inc.

Clemex Technologies Inc. develops, manufactures and markets image analysis systems and software used by quality control and research microscopy laboratories.  Clemex' customer base spans over many countries in America, Europe, Asia and encompasses major Research and Development Centers, prestigious Universities and large manufacturing industries in various fields including healthcare, automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.

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


SOURCE Clemex Technologies Inc.

For further information: For further information:

Clément Forget
Tel: 450.651.6573
Email: ir@clemex.com

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