TSX Venture Exchange symbol: FOX
TORONTO, Dec. 16 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK" of the "Corporation"), (TSX-V: FOX), a developer and manufacturer of patented non-intrusive sensing systems, would like to provide an update on its current sale activities since the closing of the acquisition of Marcon International Inc. ("Marcon")
Sales of the Pinpoint System in the present quarter (which ends on December 31, 2010) has grown. To date an aggregate of 9 Pinpoint Systems have been shipped with an additional 5 systems scheduled to be shipped prior to quarter end. The Pinpoint Systems, which are used for the monitoring of corrosion, were and are scheduled to be shipped to a major integrated gas and oil company and one of North America's largest liquid pipeline company. The additional shipments of the Pinpoint Systems came after the companies purchased a single system.
Sales in Marcon, a wholly owned subsidiary of the Corporation, has also shown strong growth. The number and value of the transactions completed by Marcon during the quarter has increased as various United State government agencies and Saudi Arabia's Sabic Services, Qatar Petroleum, and Qatar Gas have increased their purchases of goods and services from Marcon.
Mr. Allen Lone, the President and C.E.O. of the Corporation, says "We are very pleased with our team's performance, We have been able to perform well in such a short period of time, considering the cost cutting, consolidation and integration between the two entities, Since the take over our focus has been on positive cash flow, financial recovery and sales."
The Corporation continues to merge its business with that of Marcon. As it continues this process, the Corporation has identified all areas where duplicate services that can be consolidated into one, synergies between the various business units and reduced costs. The Corporation has increase sales ,decreased its expenses dramatically pushing towards positive cash flow.
About Marcon, FOX-TEK:
Marcon is an Ontario based, industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
FOX-TEK develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. FOX-TEK's FT fiber optic sensor and PinPoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Marcon, FOX-TEK have offices in Oakville, ON; Toronto, ON and Alberta; FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in FOX-TEK's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. FOX-TEK has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK)
For further information: For further information:
Allen Lone, President & CEO, Fiber Optic Systems Technology, Inc.
Tel: (905) 338 -2323 Ext 22, email: firstname.lastname@example.org