TORONTO, Feb. 20, 2013 /CNW/ - Cencotech Inc. (CTZ - TSX-V) announced today the results of operations for the fiscal year ended October 31st, 2012. All amounts referenced herein are in Canadian dollars. Revenue for the fourth quarter of 2012 was $275,609 as compared to $610,504, for the same period last year. A profit of $10,500 ($0.00 per share) was recorded for the three months ended October 31st, 2012 as compared to $199,657 ($0.01 per share) for the same period last year.
Revenue from operations for the twelve months ended October 31st, 2012 was $1,011,273 as compared to $1,339,088 in fiscal 2011. Net loss from operations for fiscal 2012 was $143,150 ($0.01 per share) as compared to a profit of $18,033 ($0.00 per share) in fiscal 2011.
K. Barry Sparks, the President of Cencotech stated "The somewhat lower sales and lack of profitability would usually indicate the absence of success in selling the Company's products. This is not the case this year with Cencotech and its subsidiary, Namsys Inc. We noted in mid-2012 that increasingly we are selling products on a "software as a service" (SaaS) basis rather than selling a term license to the software. Over time this will smooth out the "lumpiness" in reported revenue and earnings on a quarterly basis. But, in the transition period, we no longer enjoy the recording of larger one time License sale completions, even though we are completing more deals on a "pay as you go" software usage basis.
In essence Namsys has refreshed and updated its hallmark CC-32 Currency Controller product by segmenting, separating and updating the functionality into discrete units. These units branded as the Cirreon Group of applications are hosted by Namsys and sold on a SaaS basis. From a user's standpoint, applications can be prioritized and implemented based on what is most important to their organization. Also with the hosted or "cloud" offering a user does not have to worry about upgrading computer systems to take advantage of the functionality of the products. As well by taking "smaller bites" the wholesale retraining of personnel to utilize the full benefits of CC-32 can be stretched out over time, as additional segments of the Cirreon applications are added. A further benefit to users of the Cirreon applications is that there are little or no Capital Costs to implementation. SaaS results in all the cost being Operating in nature. This also opens up more markets, particularly with large retailers.
In conclusion we are pleased with the market acceptance of the Cirreon applications and as we complete the transition to selling products as "services" as opposed to licenses, revenue will be more predictable and should be sustainable to the upside quarter over quarter. The affordability/ease of installation of the offerings, as opposed to large upfront user fees should also hold us in good stead going forward."
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 contains 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.
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Mr. K. Barry Sparks