WINCHESTER, ON, March 28 /CNW Telbec/ - Sentex Systems Ltd. (TSX-V:SXS)
("Sentex") reports that the sales for the year ending December 31, 2007 were
$2,337,667, a decline of 5.5% or $138,128 versus the comparative period for
2006. This is due to a decline of 57% or $572,220 in sales of the Company's
animal nutritional product lines related to ceasing production, sale of
certain low or no margin products and the sale of certain product
registrations during the year. In spite of this, the Company recorded a net
profit of $114,126 or $0.01 per share for the twelve months ended December 31,
2007 as compared to a net loss of -$265,661 or -$0.02 per share for the
comparative period for 2006, a net improvement of $379,787. This is due to the
strong growth for the Company's omega-3 flax product lines and personal care
The sales for the Company's omega-3 flax product lines increased by 30%
or $320,628 for the twelve months ended December 31, 2007 versus the
comparative period for 2006 (December 31, 2007 - $1,385,626; December 31, 2006
- $1,064,998). This increase is due to the increased awareness and acceptance
of the Company's omega-3 flax products for the human market. The Company
believes that the sales of flax product lines will continue to grow as a
number of significant new consumer products containing the Company's omega-3
flax products will be launched in 2008.
The sales for the Company's personal care product lines increased by 25%
or $102,214 for the twelve months ended December 31, 2007 versus the
comparative period for 2006 (December 31, 2007 - $515,653; December 31, 2006 -
$413,439). This increase is due to the growing acceptance of the Company's
natural product lines in the personal care industry, in particular the
Vegelatum(R) product line, a natural plant based replacement for the gasoline
derived petroleum jelly and the Company's new flax extract products for the
personal care market.
Cost of sales as a percentage of total sales has decreased by 4.6% for
the year ended December 31, 2007 versus the comparative period for 2006. As a
result, gross margins have increased significantly. The increase in gross
margins is due to the increase in sales of the Company's omega-3 flax product
lines during the year.
General expenses were 53.2% of the total sales for the twelve months
ended December 31, 2007 versus 67.8% for the same period for 2006. This is a
significant improvement of 14.6% over the prior year which resulted from
management's profitability review of all products and operations.
There was a net gain on sale of product registration of $88,569 during
the year which was not included in the total sales.
Management is committed to continuing to improve the gross margins and
thus the Company will only produce and sell higher margins animal nutritional
product lines. Management will look for either licensing out or partner with a
third party with its remaining animal nutritional product lines.
Flax is an excellent source of omega-3 fatty acids and is easily
incorporated into daily foods. Omega-3 fatty acids are essential for good
heart and cholesterol health, brain development and for alleviating the
symptoms of PMS and menopause. Flax also contains a high content of dietary
fibers and lignans or natural plant estrogens for prostate heath and the
prevention of certain cancers. The Company is at the forefront of research,
development and manufacturing of novel flax products for human nutritional and
personal care market. With its unique technology, protected by several patents
and trademarks, there will be many new applications and new human consumer
products based on the Company's omega-3 flax product lines in the years to
The Company will be launching its own branded retail omega-3 flax
products, Natunola(R) health's delight, to many stores across Canada and US.
Management is committed to expanding the omega-3 human market share.
Some of the statements contained in the release are forward-looking
statements, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: Dr. Murray McLaughlin, Chairman, Sentex Systems
Ltd., (613) 774-000, Fax: (613) 774-2226