ST-LAMBERT, QC, Aug. 6 /CNW/ - Roctest Ltd ("Roctest") (TSX: RTT), a
leading designer and manufacturer of high-precision sensors for the civil
engineering market and applications in the energy, healthcare and process
control industries, today announced its operational and financial results for
the three and six-month periods ended June 26, 2009. All results are reported
in Canadian dollars.
"We are pleased to report solid revenue growth once again in the second
quarter," said François Cordeau, President and CEO, Roctest. "Despite the
challenging economic environment, we saw significant growth in the industrial
sector, driven by strong orders for our fiber optic sensors from OEM medical
customers. In the civil engineering sector, we won over $4.5 million of
contracts for such projects as the instrumentation of a tunnel, a leakage
detection system for a pipeline, and the monitoring of two ships, all using
fiber optic technology, as well as supplying traditional instruments to three
nuclear power plants."
For the second quarter ended June 26, 2009, revenue increased 5.7% to
$6.31 million compared to $5.97 million for the same quarter of 2008. The
increase was attributable to a 23.8% increase in sales for the industrial
sector. For the first six months of 2009, revenues increased 9.3% to $12.1
million compared to $11.07 million for the first six months of 2008.
Gross margins increased to 42.7% during the second quarter compared to
40.8% for the comparable period last year. This increase is mainly due to:
higher volume in the industrial sector, a more favourable mix of products in
the civil engineering sector and the impact of exchange rates. For the first
six months of 2009, gross margins increased to 41.4% compared to 39.1% for the
first six months of 2008.
Sales and Administration ("S&A") expense totalled $1.69 million or 26.8%
of sales, compared to $1.59 million or 26.7% of sales for the second quarter
of 2008. The increase of $0.10 million was mainly due to increased commissions
related to the higher sales. For the first six months of 2009, S&A expenses
amounted to 27.0% of sales compared to 27.2% for the same period of 2008.
For the second quarter of 2009, earnings before interest, taxes,
depreciation and amortization ("EBITDA") amounted to $560,385 compared to
$456,948 in the same period in 2008. For the first six months of 2009, EBITDA
amounted to $979,947 compared to $679,512 for the same period of 2008.
Net earnings were $0.26 million or $0.05 per share, compared to $0.13
million or $0.02 per share for the second quarter of 2008. For the first six
months of 2009, net earnings amounted to $0.40 million or $0.07 per share
compared to $0.03 million or $0.01 per share for the corresponding period of
Liquidity and Capital Resources
On June 26, 2009, cash, cash equivalents and temporary investments, net
of cash advances, were $1.27 million, compared to $1.45 million at the end of
fiscal year 2008. The decrease was mainly due to the use of additional cash to
support the increase in accounts receivable and inventories associated with
the growth in sales, partly offset by improved net income. Roctest's working
capital increased by more than $830,000 to $5.69 million at June 26th 2009
compared to $4.86 million on December 26, 2008.
As at August 5, 2009, the Company had 5,563,071 common shares
With a profitable second quarter and the benefit of a strong order book
for the civil engineering sector at the end of the quarter, management remains
confident that, despite ongoing difficult global economic conditions, Roctest
should deliver both revenue and profit growth in 2009.
Further information relating to Roctest's second quarter 2009 operating
results and financial results may be found on the Company's website at
www.roctest.com and on SEDAR (www.sedar.com).
About Roctest Ltd
Roctest designs, manufactures and markets sensors and high-precision
measuring instruments for the civil engineering market and applications in the
energy, healthcare and process control industries. The Company is recognized
for its leading-edge technology, the quality of its technical expertise and
its product development capabilities for challenging and demanding
environments. Its products are mainly sold internationally. The shares of the
Company are listed on the Toronto Stock Exchange under the symbol RTT. To
reach Roctest Ltd via the worldwide web log on to www.roctest.com.
Caution concerning forward-looking statements
Except for historical information provided herein, this press release may
contain information and statements of a forward looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events, and as such involve a number of risk factors. Such factors may
include, without excluding other considerations, risks related to foreign
exchange fluctuations, evolution in customer demand for the Company's products
and services, the impact of price pressure from competitors and general market
trends, as well as economic and geopolitical changes. As a result, readers are
advised that actual results may differ from expected results. The Company does
not update or revise publicly its forward-looking statements, except as may be
required under applicable law.
For further information:
For further information: François Cordeau, President and Chief Executive
Officer, Roctest Ltd., (450) 465-1113, (450) 465-1938 fax, Email:
firstname.lastname@example.org; Jeff Codispodi, Investor Relations, The Equicom Group Inc.,
(416) 815-0700 x 261, (416) 815-0080 fax, Email: email@example.com