QUEBEC CITY, Jan. 22, 2013 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV: OPS) today released results for its first quarter ended November 30, 2012.
- Opsens has recorded positive quarterly net earnings;
- Sharp increase of the gross margin and gross margin rate.
Opsens' business model for strong growth: fulfilling recurring needs in growing markets
Opsens has recorded positive quarterly net earnings. "We are beginning to capitalize on our sustained financial and human investments and registered our first quarterly net earnings. In the last quarter, profitability was enhanced by recurring revenues generated from previous installations in oil & gas and high seasonal activities. Profitable orders were also received from OEM customers in the medical and laboratory fields, " said Louis Laflamme, President and CEO of Opsens.
While achieving improved financial performance, Opsens continued its aggressive development in oil and gas and medical instrumentation, two promising fields where there are large market opportunities.
In Alberta, oil & gas activities continue to grow as more oil and gas producers test and adopt Opsens technologies to optimize production and recovery rates. The SAGD oil and gas market targeted by Opsens is expected to quadruple by 2020.
In the medical instrumentation sector, Opsens is currently working on its first complete medical products for FFR. The OptoWire and OptoMonitor are currently in the validation stage and will soon move into the regulatory approval process. "We are aiming for a 2014 commercial release for this large market, currently served by two players," said Laflamme. The FFR market is moving towards $1-billion in annual revenues. Penetration of a fraction of this market will have a significant impact on Opsens' sales.
Opsens had net earnings of $21,000 for Q1 2013, an improvement of $280,000 compared to the prior year. However, to maximize shareholders value, the Company set out an aggressive verification and validation plan for its FFR products. Consequently, the Company expects to record net losses for the remaining quarters of fiscal 2013.
Although modest, revenue growth was attained despite the termination of the manufacturing agreement in the high-power transformer business in 2012 to focus Opsens on its main growth businesses in oil and gas and medical instrumentation.
Opsens' gross margin and gross margin rate rose sharply in the first quarter of 2013 compared to the first quarter of 2012 due to the completion of higher margin contracts in the oil and gas, laboratory and medical instrumentation.
The Company reported revenue of $2,533,000 for the three-month period ended November 30, 2012, compared with $2,495,000 in the comparative period, an increase of 1.5%. Sales in the oil and gas sector totalled $1,886,000, compared with $1,838,000 in the comparative period.
|(Unaudited, in thousands of Canadian dollars, except for information per share)|| Three-month
|Cost of sales||1,315||1,737|
|Financial expenses (revenues)||22||(46)|
|Earnings (loss) before income taxes||21||(259)|
|Net earnings (loss) and comprehensive income||21||(259)|
|Net earnings (loss) per share - Basic||0.00||(0.01)|
|Net earnings (loss) per share - Diluted||0.00||(0.01)|
Grant of stock options
Opsens' Board of Directors also authorized yesterday the grant of a total of 1,103,667 stock options, of which 966,667 were granted to officers, as provided in the Opsens' stock option plan adopted by the shareholders on January 21, 2013.
Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe for one Opsens' common share until January 21, 2018 and at a price equal of $0.25 per share. The stock options granted will be vested over a period of four years at a rate of 25 % per year, the first tranche being vested at the end of the first year following the granting of the stock options.
About Opsens Inc. (www.opsens.com)
Opsens is a leading developer, manufacturer, supplier and installer of a wide range of fiber optic solutions based on proprietary patented technologies for the measurement of pressure, temperature and other parameters. The qualities of our sensors allow us to offer measuring instruments that are effective and durable in extreme conditions. Opsens is using its competitive advantages to focus primarily on two strong growth markets: oil and gas and FFR medical instrumentation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Opsens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
SOURCE: OPSENS INC.
For further information:
Marie-Claude Poitras, communications, 418.682.9996
Louis Laflamme, CPA, CA, Chief Executive Officer, 418.682.9996