TORONTO, Sept. 24, 2014 /CNW/ - Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first nine months and the third quarter of fiscal 2014, ended July 31st. All amounts referenced herein are in Canadian dollars. Revenue for the third quarter was $328,792 as compared to $286,553 for the same period last year. Net income for the quarter of $61,159 ($0.00 per share) was recorded as compared to $29,718 ($0.00 per share) for the three months ended July 31st, 2013.
Revenue for the first nine months of fiscal 2014 was $924,159 as compared to revenue in the same period last year of $790,150. The Company recorded net income of $182,649 ($0.01 per share) in the nine months ended July 31st, 2014 as compared to $52,107 ($0.00 per share) in the same period last year.
K. Barry Sparks, the President of Cencotech, stated "As reported previously, the Company is continuing to make progress in moving new product sales opportunities forward, particularly with respect to our Cirreon SaaS and related software offerings. New customers for the Company's products are increasingly requesting that products be offered on a "software as a service" basis (SaaS), as opposed to purchasing a term licence for such software from the Company. While this reduces the recording of one time larger licence sales completions, we are completing more deals on a contracted 'pay as you go' usage basis. Recurring contracted software revenue of $241,812 accounted for 73.5% of total sales in the quarter ended July 31st, 2014, as compared to $209,145 in the same period last year."
The Company also announced that it has repaid $200,000 of its outstanding debenture from operating cash; and has entered into an agreement with the holder of the debenture as part of the extension of the debenture to October 31st, 2014. The debenture holder is a "Labour Sponsored Investment Fund" and due to legislative changes under which it operates wishes to raise cash from its present asset holdings. Accordingly, the Company and the debenture holder have agreed that if the Company can repay a further $550,000 on the debenture on or before October 31, 2014, the holder will waive all interest on the debenture from August 1st, 2014 to the date of payout, plus any balance on the debenture left after the $550,000 payment. Management are working diligently to ensure these payments are made prior to October 31, 2014.
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, large retailers, public transportation operations and the gaming industry. Cencotech's proprietary software products for this market are "open-architectured" and have been developed to interface with clients' legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release may contain forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation's sales strategies.
SOURCE: CencoTech Inc.
For further information: Mr. K. Barry Sparks, President, (416) 369-6081, mailto:email@example.com