TORONTO, March 23, 2016 /CNW/ - Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first three months of fiscal 2016, ended January 31st. All amounts referenced herein are in Canadian dollars.
Revenue for the first three months of fiscal 2016 was $495,285 as compared to $346,572 for the same period last year. Income before Income Tax, a key metric engaging business performance, was $253,080 ($0.01 per share), as compared to $232,756 ($0.01 per share) in the first quarter of 2015. While the Company is not presently taxable due to loss carry forwards from previous years, in 2015 the estimated tax value of the loss carry forwards were capitalized. As a consequence, the 2016 first quarter results include a deduction of income tax of $67,066, while the 2015 results show no tax payable. Therefore, Comprehensive Income for the first quarter of 2016 was $186,014 ($0.01 per share) compared to $232,756 ($0.01 per share) for the comparable period in 2015. It is also noteworthy that the gain in foreign exchange, over which the Company has no control, was $89,234 in the first quarter of 2015, as compared to $55,609 for the same period this year.
The consolidated financial statements and Management's discussion and analysis for the first quarter of 2016 are available under the Company's profile on SEDAR at www.sedar.com.
K. Barry Sparks, the President of Cencotech, stated: "In excess of 75% 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"). The "Cirreon™"group of applications hosted by the Company's subsidiary, Namsys Inc, and sold on a cloud usage basis continues to make excellent progress in the marketplace.
The Management challenge for the Namsys Team for 2016 is to continue to grow distribution. Management are working diligently to assist existing distributors expand the use of our products in their networks and at the same time initiating new distributors offering our products through their networks.
Based upon the success in the marketplace of the Cirreon products in addition to a satisfied base of CC32 licence holders, it remains our belief that the Company will continue to make strides in achieving greater revenue and higher profits in 2016 and beyond."
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]