CALGARY, Feb. 1 /CNW/ - Pure Technologies Ltd., ("Pure") (TSX-V: PUR) today released the following update on business activities for 2010,
and the outlook for 2011, based on preliminary unaudited financial
Full-year revenue for 2010 is expected to be more than 50% greater than
2009 revenue of $31.7 million.
Recurring revenue for the year is expected to be approximately $4.9
million, compared to $3.5 million in 2009.
Gross margin for the year is expected to be in excess of 63%.
EBITDA, excluding foreign exchange impact, is expected to grow by more
than 55% over EBITDA of $4.5 million for 2009.
Earnings per share are expected to grow by more than 100% over 2009.
Revenue for the fourth quarter of 2010 was more than $16 million,
compared to revenue of approximately $13 million for the corresponding
quarter of 2009 which included approximately $7.5 million in equipment
deliveries to the Great Man-Made River Project (GMRA). This growth in
revenue for the fourth quarter of 2010 is notable in that it reflects a
significant year-over-year increase in worldwide project activity.
Revenue generated by technologies acquired through the Pressure Pipe
Inspection Company (PPIC) acquisition was over $5 million for the
quarter. Total confirmed backlog (contracts in place) plus notified
contract awards currently stands at $43 million, excluding recurring
revenue and some engineering services.
The integration of the business and resources of PPIC is now essentially
complete. Sales, marketing, operations and research & development
functions have been combined. We have realized approximately $4
million in annualized savings on combined sales, general and
administrative expenses and we have accelerated our project delivery
capability and research & development output. Pure has been successful
in securing new or renewed pipeline monitoring, leak detection and
condition assessment contracts from former clients of PPIC including
the recently-announced award from the City of Dallas; renewal of a
Sahara® contract with Maynilad (Philippines); SmartBall® and PipeDiverTM work for Miami-Dade; and electromagnetic inspection, SmartBall, and
SoundPrint AFO® contracts from Conagua (Mexico).
Based on current visibility, we expect to maintain a high rate of
revenue and EBIDTA growth through 2011, commencing with a very strong
first quarter. In addition, we are working on the development of
high-value, multi-year program opportunities with a number of agencies
globally. The acquisitions of Aqua Environmental Pty. Ltd. (Australia)
and the inspection business of Specialised Technical Services (United
Arab Emirates) have provided us with additional marketing and
operational resources in these high-growth markets.
Our balance sheet remains strong and we are in a good position to take
advantage of potential acquisition opportunities as they arise.
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management technology
and services company which has developed patented technologies for
inspection, monitoring and management of critical infrastructure around
the world. Pure's business model incorporates four distinct but
complementary business streams:
Sales of proprietary monitoring technologies for pipelines, bridges and
structures (SoundPrint®, SoundPrint® AFO);
Recurring revenue from data analysis and site maintenance for these technologies, and from
Premium technical services including inspection, leak detection and condition assessment (P-Wave®,
SmartBall®, Sahara®, PipeDiver™, PureRobotics™);
Specialized engineering services in areas related to asset management, primarily in the area of pipeline
condition assessment for water and wastewater infrastructure (Openaka,
Price Brothers UK Ltd, and Jason Consultants).
This release contains forward-looking statements. Forward-looking
statements, without limitation, may contain the words "believes",
"expects", "anticipates", "estimates", "intends", "plans", or similar
expressions. Forward-looking statements are not guarantees of future
performance. They involve risks, uncertainties and assumptions and the
Company's actual results could differ materially from those
anticipated. Forward-looking statements are based on the opinions and
estimates of Management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking statements. In the context of any
forward-looking information please refer to risk factors detailed in,
as well as other information contained in, the Company's filings with
Securities Regulators (www.sedar.com).
® Registered Trademarks, property of Pure Technologies Ltd.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release"
SOURCE Pure Technologies Ltd.
For further information:
To find out more about Pure Technologies Ltd. (TSX-V: PUR), visit our website at www.puretechnologiesltd.com. Or contact James E. Paulson, Chairman or Karen Keebler, Chief Financial Officer at (403) 266-6794 or e-mail to email@example.com.