CALGARY, Jan. 11 /CNW/ - Pure Technologies Ltd., TSX-V: PUR, released the following update on business activities for 2009, and the outlook for 2010, based on preliminary unaudited financial results:
- Full-year revenue is expected to be more than 35% greater than the
$22.2 million generated in 2008. This has been achieved through
growth in all aspects of our business.
- EBITDA, excluding foreign exchange losses, is expected to grow by
more than 125% over the $1.7 million EBITDA for 2008.
- Recurring revenue for the year is expected to be approximately
$3.5 million, compared to $2.5 million in 2008.
- Gross margin for the year is expected to remain in excess of 60%.
Total confirmed backlog (contracts in place) plus notified contract awards currently stands at $33.5 million, excluding recurring revenue. Based on current visibility, we expect to maintain a high rate of revenue and EBITDA growth through 2010, excluding the impact of any acquisitions that may be completed during the year.
We have identified the following sectors and regions which we expect will help to deliver growth in addition to our current markets through 2010 and beyond:
- Leak detection, inspection and condition assessment in the wastewater
We expect to generate opportunities as a consequence of increasing
regulatory scrutiny, particularly in the US, where the Environmental
Protection Agency is implementing Consent Decrees on wastewater
agencies as a means of addressing sewer overflows and discharges. The
wastewater market is at least as large as the water market, and
suffers from a dearth of effective inspection and condition
assessment technologies. We will leverage our newly-acquired robotics
capability, as well as SmartBall(R) and new in-line inspection tools
to be introduced in the near future, to establish a strong presence
in this sector. The acquisition of Jason Consultants in late 2009
allows us to add value to our technology offerings in the space, as
Openaka has done in the prestressed pipe market.
- Mexico and South America:
We increased our business development activities significantly in the
large-diameter pipe market in these regions in 2009, and we expect
this investment to result in an increase in commercial activity in
the near term.
- Middle East:
The establishment of our Abu Dhabi office will allow us to pursue and
service business in the Middle East region, where there is an
increasing awareness of the need to conserve water resources. We are
currently in the process of planning a number of SmartBall(R)
demonstration projects, and we are also pursuing large-diameter
pipeline management opportunities. We expect the region to generate
meaningful revenue in 2010.
- East Asia:
Through our Chinese partner, Nanjing Hydraulic Research Institute, we
have identified several high-value opportunities for pipeline
inspection and monitoring. We are in the process of establishing an
office in Hong Kong in partnership with a local company to service
these opportunities and to grow our general inspection and monitoring
business in Hong Kong, Macau, China and Taiwan.
While our cash reserves will be reduced in the short term in order to service our growing backlog, we expect our working capital position to strengthen considerably as the year progresses. We plan to maintain our commitment to investment in research and development and in international business development, and we continue to pursue opportunities for acquisitions.
ABOUT PURE TECHNOLOGIES LTD.
Pure Technologies Ltd. is an international technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure operates from its headquarters in Calgary, Canada and through subsidiaries in Maryland, New Jersey, and the UK. Pure's proprietary product portfolio includes SoundPrint(R), a continuous acoustic structural monitoring system for buildings, bridges and structures; SoundPrint(R) AFO, a fiber-optic distributed acoustic sensing system for monitoring and surveillance of pipelines; and SmartBall(R), a revolutionary new leak detection technology for water, wastewater and hydrocarbon pipelines.
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words believes, expects, anticipates, estimates, intends, plans, or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and the Company's actual results could differ materially from those anticipated. Forward looking statements are based on the opinions and estimates of Management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in, the Company's filings with Securities Regulators (www.sedar.com).
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SOURCE Pure Technologies Ltd.
For further information: For further information: To find out more about Pure Technologies Ltd. (TSX-V: PUR), visit our website at www.puretechnologiesltd.com; contact James E. Paulson, Chairman or Karen Keebler, Chief Financial Officer at (403) 266-6794; or e-mail to: firstname.lastname@example.org