TORONTO, March 27, 2014 /CNW/ - Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first three months of fiscal 2014, ended January 31st. All amounts referenced herein are in Canadian dollars.
Revenue for the first three months of fiscal 2014 was $269,723 as compared to $230,888 for the same period last year. Comprehensive income for the 2014 first quarter was $110,377 as compared to a loss of $4,190 in the first quarter of 2013.
K. Barry Sparks, the President of the Cencotech, stated: "The majority of the revenue generated in the quarter was recurring in nature. This includes maintenance, systems upgrades, monitoring fees and sales of software product as a service ("SaaS"). Increasingly, we are selling our software products on a SaaS basis rather than selling large system term licenses. While this reduces the recording of one time larger license fees, we are now completing more deals for smaller more directed systems on a "pay as you go" usage basis. This recurring monthly revenue continues to scale upwards and this quarter represented 35% of total revenue. As the SaaS approach to selling our products continues to grow, we anticipate significant increases in both quarterly top line and reported profitability. We also note part of the bottom line revenue growth this quarter was due to the rapid weakening of the Cdn. dollar vis a vis the U.S. dollar during the quarter.
"We remain confident in our ability to provide unique solutions that satisfy our customers' requirements."
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 protected]