MONTREAL, April 6 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment for traditional boilers, has reported a annual sales of $2,443,827 in 2009.
Financial Highlights of 2009 were as follows:
- Net Sales of $2,443,827 compared to $1,687,869 for the year in 2008,
an increase of 45%
- Gross Margin of $785,815 (32.2%) compared to $643,415 for the year in
- Net Consolidated Loss of ($3,211,349) compared to ($2,111,745) for
the year in 2008
- Fully diluted loss per share of ($0.0243) compared to ($0.0182) as of
September 30, 2008.
Note: These are the financial highlights only. Management's Discussion and Analysis, the audited consolidated financial statements and notes thereto of Sofame Technologies Inc. for the year ended September 30, 2009 are available on the SEDAR website at www.sedar.com.
Sales totaled $2,443,827 for the financial year 2009 representing an increase of $755,958 (45%) compared to $1,687,869 in 2008. Sales in the fourth quarter totaled $285,283 representing an increase of $229,760 (414%) compared to the fourth quarter in 2008.
Cost of goods sold in 2009 was $1,658,012 (67.8%) compared to $1,044,454 (61.9%) in 2008. Operating expenses in 2009, excluding financial expenses, increased by $1,219,576 (61.5%) to $3,201,688 compared to $1,982,112 in 2008. The operating loss for fiscal year 2009 was ($2,415,873) compared to ($1,338,697) in 2008. Financial costs, reorganization charges, development of Sofame Europe and non-cash stock-based compensation costs totalled $795,476 in 2009, compared to $773,048 in 2008.
The 2009 net loss translates into fully diluted earnings (loss) per share of ($0.0243) compared to a loss of ($.0182) per share in 2008.
Sofame's primary industrial energy efficiency market experienced a slowdown in 2009 due to declining natural gas prices, cut-backs in capital spending by industrial end-users as a result of the economic slowdown, and uncertainty about access to federal stimulus grants in the US market. The combination of poor market conditions and difficult access to financing compromised sales growth in 2009. By mid-2009 in response to changing market conditions, Sofame began investing in marketing and promotion to rebuild its sales pipeline. Sofame made progress in identifying new opportunities and signing-up nine new manufacturer's representatives. An increase in quoting activity was experienced as the year progressed due to increasing demand for energy efficiency solutions. Improved sales practices instituted at Sofame in 2009 were expected to result in a better closing ratio.
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants, utilities and many more large energy consumers to significantly reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.com.
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SOURCE Sofame Technologies Inc.
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