Pioneering Technology Corp. Reports Net Profit in 2010 and a 110% Increase in Revenue

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Pioneering Exceeds its 2010 Business Objectives

MISSISSAUGA, ON, Feb. 1 /CNW/ - Pioneering Technology Corp. ("Pioneering" or the "Corporation") (TSX Venture: PTE), an energy smart product innovation and consumer goods company, today reported positive net income for the fiscal year ended September 30, 2010. Revenue during the period increased 110% to approximately $2,880,000 as compared to revenues of approximately $1,371,000 for the same period last year representing an increase of approximately $1,509,000.

The Corporation delivered on meeting or exceeding its 2010 business objectives by turning a profit in 2010 for the year since commercializing its first real product in FY 2007; doubling its revenue in 2010 versus 2009 and successfully introducing an innovative new product to help supplement the Corporation's growth in 2011 and beyond.

Net income for the year was $78,457, an increase of $677,671 over 2009's net loss of $599,214 representing a basic and fully diluted income per share gain of $0.004 versus a loss of $0.05 in 2009. The net loss in 2008 was $1,273,000 and a loss per share of $0.15. At present revenue growth is being driven by demand for Pioneering's proprietary, flagship technology, the Safe-T-element cooking system (STE) which was engineered to help prevent stove top cooking fires, the number one cause of household fire in North America.

The Corporation believes that EBITDA is a useful measure for external investors to evaluate "normalized earnings" for the purpose of measuring the Corporation's progress. As a result, the Corporation will begin to report EBITDA, as defined below, in an attempt to provide investors with more useful information. EBITDA for 2010 fiscal year was $280,300, as compared to a negative EBITDA of ($355,723) in FY 2009, which is an increase of $636,023. The Corporation defines EBITDA as earnings excluding "non-recurring" items, "non-cash" items, taxes, interest and financing fees and amortization.

Gross profit during the year declined only slightly, from 57% to 54%, as the Corporation managed to maintain its pricing structure and control over its key product cost inputs. The slight margin reduction from 2010 to 2009 was due to volume incentive pricing being offered to distributors as the Corporation signed new appliance dealer relationships in Canada and the US and in some instances traded price for volume growth. Price discounting for competitive reasons has not been a major concern as there is currently no known direct competition for the STE product.

Operating expenses increased only marginally by $136,012, or 12%, from $1,135,272 in 2009 to $1,271,284 in 2010. This increase is reasonable when weighed against revenue growth of 110% and management believes there is the opportunity for further increased economies of scale.

The Company's audited financial statements for the year ended September 30, 2010, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at

Pioneering Technology Corp's CEO Kevin Callahan commented, "We established ambitious goals for 2010 and achieved them across the board. We believe in our technologies and the marketplace is now rewarding us by believing and demanding these solutions. We have a great team and it's extremely rewarding to see our efforts yield these initial successes. I'm confident that we are now positioned for more top and bottom line growth in fiscal 2011. Stay tuned."

In recognition of the significant efforts of certain members of senior management over the past 12 months and the Corporation's achievements during that period, the Board of Directors awarded discretionary bonuses in the aggregate amount of $125,000 to senior management, $50,000 of which will be satisfied by the issuance of 178,571 common shares at a deemed price of $0.28 per share. The issuance of these shares is subject to approval of the TSX Venture Exchange.

About Pioneering Technology Corporation:

Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. The patented Safe-T-element® cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. The patent pending Safe-T-sensor is designed to detect burning conditions in microwave ovens shutting it off before it causes a fire or triggers a fire alarm. Pioneering trademarks include Safe-T-element®, Safe-T-Sensor™, Powergrill™, Battery Eliminator®, Powerpak™ and the Hydro-free Furnace Fan™. For more information visit:

Forward Looking Statements

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.

Non-GAAP Measures

"EBITDA" is not a measure recognized under Canadian generally accepted accounting principles ("GAAP"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Corporation's EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of the Corporation posted on SEDAR (

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

SOURCE Pioneering Technology Corp.

For further information:

Kevin Callahan, President & CEO at (905) 712-2061 ext. 222

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