TSX Venture Exchange symbol: FOX
TORONTO, March 9 /CNW Telbec/ - Fiber Optic Systems Technology, Inc.
("FOX- TEK"), (TSX-V: FOX), a developer of patented non-intrusive sensing
systems, today announced financial and operating results for the year ended
December 31, 2006. The annual statements have been filed on SEDAR
(www.sedar.com). All amounts are expressed in Canadian dollars unless
Among the financial results for the year ended December 31, 2006, FOX-TEK
reported revenue of $104,000 compared to $117,000 in 2005. The net loss for
2006 was $5,444,000 or $.15 per share, compared to a net loss of $2,944,000,
or $.10 per share in 2005. The loss reflects the Company's increased expenses
as it continues to build the sales, marketing and operational teams working
toward successful product roll out and commercialization.
"We're working toward the expansion of our global presence through
increased efforts targeting the Canadian, U.S. and Middle Eastern markets,"
said Dr. Essam Zaghloul, President and CEO of FOX-TEK. "We are currently very
focused on achieving sales traction in the oil and gas industry through our
sales and marketing efforts to secure our foothold in these markets."
During the year, Dr. Essam Zaghloul joined FOX-TEK as President and CEO
to transition the Company from R&D to a global commercialization phase.
Dr. Zaghloul is charged with building the foundation for FOX-TEK to assume
leadership in the oil and gas industry with its corrosion monitoring and
structural integrity systems. With strategic relationships in key markets,
Dr. Zaghloul brings to FOX-TEK an impressive track record of growing oil & gas
and technology companies.
Additionally, the Company raised net $8.5 million in financing through
the issue of warrants, issue of common shares from the exercise of options and
a private placement with Research Capital. The funds are to be used to
expedite product rollout and expand FOX-TEK's sales and marketing presence in
North America and the world.
FOX-TEK also reported in the fourth quarter of 2006 that it added
continuous monitoring and remote data retrieval capability to a previous
installation on a large crude oil pipeline in western Canada. This is part of
FOX-TEK's recent push to commercially supply non- intrusive fiber optic
sensing systems for applications in the Oil and Gas sector such as pipeline
bending and internal corrosion monitoring.
About Fiber Optic Systems Technology
Fiber Optic Systems Technology, Inc. "FOX-TEK" provides non-intrusive
sensor systems to the oil and gas market to monitor the thinning of pipelines
and refinery vessels due to corrosion/erosion, strain due to bending/buckling,
and process pressure and temperature. FOX-TEK's FT fiber optic sensor and
Pinpoint systems allow cost- effective, 24/7 remote monitoring capabilities to
improve scheduled maintenance operations, avoid unnecessary shutdowns, and
prevent accidents and leaks.
FOX-TEK has offices in Toronto, Calgary and Houston. For more
information, visit www.fox-tek.com.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward- looking statements
are detailed from time to time in FOX-TEK's periodic reports filed with the
Ontario Securities Commission and other regulatory authorities. FOX-TEK has no
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: Dr. Essam Zaghloul, president and CEO, Fiber
Optic Systems Technology, Inc., (416) 665-2288, firstname.lastname@example.org;
Investor Relations contact: Renmark Financial Communications Inc.: Barry Mire,
email@example.com; Christine Stewart, firstname.lastname@example.org,
(514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com; Media contact:
Caroline Venza, Public Relations, Antenna Group for FOX-TEK, (415) 977-1939,