Avante Logixx Inc. Announces Non-Cash Write-down of Certain Capitalized Costs


TORONTO, April 29 /CNW/ - After receiving feedback from the previously announced Utility pilot projects in the remote energy metering and demand response market, Avante Logixx Inc. has determined that enhancements to the company's existing technology will be necessary in order to roll out its solution effectively in scale.  The Company believes it can develop such technology in a cost-effective manner to pursue these and other opportunities.

The aforementioned feedback has caused Management to reassess the fair value of the related capitalized development costs which relate specifically to this Energy application, presently carried at $2.6 million on the Consolidated Balance Sheet. Accordingly, after a detailed evaluation by the Management and approval of the Board, Avante Logixx Inc. has decided to take a one-time impairment charge for the entire amount of these development costs, incurred over the past two years. While this is a non-cash item, this charge will have the corresponding effect of reducing earnings for the year just ended March 31, 2011.

Avante's existing technology, deployed in applications other than the Utility market, continues to show growth in applications including security, home automation, personal home energy conservation and management, flood detection and virtual monitoring. The Company is also currently evaluating other scalable applications of this technology which are in the testing stage.

With regard to Avante's business operations, revenue for the fourth quarter ending March 31, 2011 is expected to be approximately 15% higher than the same period last year and revenue for the year ending March 31, 2011 will be approximately 10% higher than the previously reported year ended March 31, 2010 and the outlook for continued growth is positive.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Corporation to be materially difference from future results, performance or achievements expressed or implied by such forward-looking statements.

SOURCE Avante Logixx Inc.

For further information:

Leland Verner, Chairman, (416) 823-7474, leland@avantelogixx.com
George Rossolatos, Co-CEO, (416) 923-6984 x221, george@avantelogixx.com

Please join our email list for company news at www.avantelogixx.com

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