Rutter Releases Third Quarter Unaudited Financial Statements

ST. JOHN'S, July 14 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its unaudited third quarter consolidated financial statements for the nine month period ended May 31, 2010.

Summary financial information is provided in this press release which should be read in conjunction with the full financial statements and MD&A available on the Company's web site at www.rutter.ca or on SEDAR at www.sedar.com. Fraser H. Edison, President and CEO of the Company, and Karen M. Snook, Chief Financial Officer, will host a conference call on Monday, July 19, 2010, to discuss the results. Details of this call will be announced in a press release dated July 14, 2010 which will also be available on the Company's web site.

SUMMARY OF RESULTS

The Company's quarterly results are summarized in the tables below:

    
    -------------------------------------------------------------------------
                     (in thousands except per share amounts)
    -------------------------------------------------------------------------
                     Three     Three    Change      Nine      Nine    Change
                    Months    Months              Months    Months
                      2010      2009                2010      2009
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Revenue        $ 8,392   $17,310   $(8,918)  $30,083  $ 42,999  $(12,916)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA(1)          989     1,494      (505)    2,680     3,868    (1,188)
    -------------------------------------------------------------------------
    Other costs(2)   1,072     1,739       667     3,619     3,849       230
    -------------------------------------------------------------------------
    Earnings
     (Loss) from
     Continuing
     Operations        (83)     (245)      162      (939)       19      (958)
    -------------------------------------------------------------------------
    Net gain -
     Discontinued
     Operations          -     3,728    (3,728)        -     1,990    (1,990)
    -------------------------------------------------------------------------
    Net and
     Comprehensive
     Earnings
     (Loss)            (83)    3,483     3,566      (939)    2,009    (2,948)
    -------------------------------------------------------------------------
    Earnings
     (Loss) Per
     Share         $(0.001)  $0.0045  $(0.0055)  $(0.012)   $0.026   $(0.038)
    -------------------------------------------------------------------------

    ---------------
    (1) EBITDA is identified in the Company's financial statements as
        "Earnings before undernoted items" and is more fully defined in the
        Company's financial statements and MD&A.
    (2) Other (costs) income include: Depreciation and amortization; Interest
        on long-term debt; Interest and bank charges; Other items; Write down
        of product development costs; Equity income; all of which are
        separately disclosed in the Company's financial statements.


    -------------------------------------------------------------------------
                                 (in thousands)
    -------------------------------------------------------------------------
                     Three     Three    Change      Nine      Nine    Change
                    Months    Months              Months    Months
                      2010      2009                2010      2009
    -------------------------------------------------------------------------
    Revenues:
    -------------------------------------------------------------------------
      Third party
       manufactu-
       ring         $5,688   $13,330   $(7,642)  $21,625   $30,432   $(8,807)
    -------------------------------------------------------------------------
      Company
       owned
       products      1,800     3,384    (1,584)    5,820    10,987    (5,167)
    -------------------------------------------------------------------------
      Total
       Technolo-
       gies          7,488    16,714    (9,226)   27,445    41,419   (13,974)
    -------------------------------------------------------------------------
      Other
       (including
       Corporate)      904       596       308     2,638     1,580     1,058
    -------------------------------------------------------------------------
      Company
       total         8,392    17,310    (8,918)   30,083    42,999   (12,916)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA
    -------------------------------------------------------------------------
      Technologies
       Segment       1,068     1,624      (556)    3,271     5,023    (1,752)
    -------------------------------------------------------------------------
      Other
       (including
       Corporate)      (79)     (130)       51      (591)   (1,155)      564
    -------------------------------------------------------------------------
    

Technologies

Technologies revenues for the quarter declined by $9,226,000 and on a year to date basis by $13,974,000. This decline occurred in third party manufacturing revenues as the activity level returned to more normal levels from the peak achieved last year. Company owned products revenues were down due to declining demand for VDR's consistent with the timing of regulatory requirements. This revenue stream has also been impacted negatively by general economic conditions over the past year.

Earnings (Loss) from Continuing Operations

The loss from continuing operations was $83,000 in the quarter as compared to a loss of $245,000 for the same quarter last year. Reductions in depreciation and amortization, interest on long-term debt, foreign exchange loss and other costs account for the improvement. On a year to date basis, the loss from continuing operations is higher than the prior year driven by a write-down of product development costs of $532,000 made in the second quarter and foreign exchanges losses in the current year compared to foreign exchange gains in the prior year.

CONCLUSION

"During the third quarter Rutter has continued to focus on its core strengths," said Mr. Edison. "We continue to build on our long standing relationship with our military customer with the successful expansion of our repair and overhaul work as a result. I am also pleased to see a steady increase in our radar product sales revenues," he said. "The world wide interest we are now seeing in our oil spill detection capabilities certainly indicates there is growing demand for our product," he concluded.

About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see www.rutter.ca.

Forward-Looking Statements

This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.

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

%SEDAR: 00022015E

SOURCE Rutter Inc.

For further information: For further information: Karen Snook, Chief Financial Officer, Rutter Inc., +1 709 368 3174; Dan Herder, Corporate Secretary, Rutter Inc., +1 709 368 3174


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