TORONTO, June 29, 2015 /CNW/ - Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first six months and the second quarter of fiscal, 2015, ended April 30th. All amounts referenced herein are in Canadian dollars. Revenue for the second quarter was $452,622 as compared to $325,643 for the same period last year. Net income for the quarter of $155,555 ($0.01 per share) was recorded as compared to $11,013 ($0.00 per share) for the three months ended April 30th, 2014.
Revenue for the first six months of fiscal 2015 was $799,194 as compared to revenue in the same period last year of $595,367. The Company recorded net income of $388,311 ($0.014 per share) in the six months ended April 30th, 2015 as compared to $121,490 ($0.00 per share) in the same period last year.
K. Barry Sparks, the President of the Cencotech, stated: "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 as noted previously, 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. Total recurring contracted software revenue accounted for 81% of total sales in the quarter ended
April 30, 2015.
As the bulk of the Company's sales are in US dollars, quarterly fluctuations in the exchange rate between Canadian and US dollars impact the reported income of Cencotech. Revenues are converted to Canadian dollars when sales are completed and booked. Foreign exchange adjustments are then required when payments are actually received. This foreign exchange adjustment negatively impacted stated Comprehensive Income in the Quarter ended April 30, 2015 by $31,955. However, the six month results include foreign exchange gains of $57,280. This compares to 2014 foreign exchange impacts on profitability of ($41,339) for the quarter and $16,213 for the 2014 half year.
The Boards of Directors of the Corporation and its subsidiary, NamSys, today also passed resolutions establishing long term bonus plans to compensate and reward Namsys Bonus Employees (as defined but excluding directors of both corporations), in the event of a sale by NamSys to an arm's length purchaser of all or substantially all of its assets or any other transaction pursuant to which, directly or indirectly, all or substantially all of the assets of NamSys become owned by an arm's length third party or a transaction by Cencotech which has the same or similar effect. Under these plans the Directors agree to use their reasonable best commercial efforts, to the maximum extent permitted by law, so as to cause an aggregate of 15% of the consideration payable in respect of such a transaction to be paid to NamSys Bonus Employees in such individual proportions as the directors in their sole and absolute discretion shall determine."
Mr. Sparks continued "the Corporations' Boards of Directors feel strongly that the NamSys employees who are both creating and maintaining the NamSys mix of software products, should be properly rewarded in the event of a fundamental disposal transaction. Having said that, no such transaction is presently being considered."
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, [email protected]