Rutter Releases 2010 Audited Financial Statements

ST. JOHN'S, Nov. 26 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its audited consolidated financial statements for the year ended August 31, 2010.

Summary financial information is provided in this press release which should be read in conjunction with the full financial statements and MD&A available on the Company's web site at www.rutter.ca or on SEDAR at www.sedar.com.  Fraser H. Edison, President and CEO of the Company, and Karen M. Snook, Chief Financial Officer, will host a conference call on Monday, November 29, 2010, to discuss the results. Details of this call were announced in a press release dated November 26, 2010 and are also available on the Company's web site.

SUMMARY OF RESULTS

The Company's quarterly results are summarized in the tables below:

(in thousands except per share amounts)
	Three Months 2010	Three Months 2009	Change	Twelve Months 2010	Twelve Months 2009	Change
Revenue	$8,047	$15,381	$(7,334)	$38,130	$58,380	$(20,250)
EBITDA^1	924	1,741	(817)	3,604	5,609	(2,005)
Other costs ^2	956	1,431	(475)	4,574	5,280	(706)
Earnings (Loss) from Continuing Operations	(32)	310	(342)	(970)	329	(1,299)
Net gain - Discontinued Operations	-	-	-	-	1,991	(1,991)
Net and Comprehensive Earnings (Loss)	(32)	310	(342)	(970)	2,320	(3,290)
Earnings (Loss) Per Share	$ -	$ -	$ -	$(0.01)	$0.03	$(0.04)

(in thousands)
		Three Months 2010	Three Months 2009	Change	Twelve Months 2010	Twelve Months 2009	Change
Revenues:
	Third party manufacturing	$5,038	$11,795	$(6,757)	$26,662	$42,227	$(15,565)
	Company owned products	1,895	2,856	(961)	7,716	13,843	(6,127)
	Total Technologies	6,933	14,651	(7,718)	34,378	56,070	(21,692)
	Other (including Corporate)	1,114	730	384	3,752	2,310	1,442
	Company total	$8,047	$15,381	$(7,334)	$38,130	$58,380	$(20,250)
EBITDA
	Technologies Segment	783	2,044	(1,261)	4,054	7,067	(3,013)
	Other (including Corporate)	141	(303)	444	(450)	(1,458)	1,008

Technologies
Technologies revenues declined by $7,718,000 for the quarter and by $15,565,000 on a year to date basis as compared to the prior year.  This decline is largely attributable to third party manufacturing as the activity level returned to more normal levels from the peak achieved last year.  Company owned products revenues were also down due to declining demand for VDR's consistent with the timing of regulatory requirements. 

Earnings (Loss) from Continuing Operations
On a year to date basis, the loss from continuing operations is $970,000 compared to earnings of $329,000 in the prior year.  The loss is driven by a write-down of product development costs of $532,000 made in the second quarter and foreign exchanges losses in the current year compared to foreign exchange gains in the prior year.

CONCLUSION
"The 2010 fiscal year saw our company focusing on its core strengths and working to reduce debt levels" said Fraser Edison, "We continue to enjoy a strong relationship with our long standing military customer.  I am also pleased to see a steady increase in our radar product sales revenues", he said.  "Our recent certification from the Norwegian Clean Seas Association and the worldwide interest we are seeing in our oil spill detection capabilities certainly indicates there is growing demand for our product" he concluded.

About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see www.rutter.ca

Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.

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

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¹ EBITDA is identified in the Company's financial statements as "Earnings before undernoted items" and is more fully defined in the Company's financial statements and MD&A.

² Other (costs) income include:  Depreciation and amortization; Interest on long-term debt; Interest and bank charges; Other items; Write down of product development costs; Equity income; all of which are separately disclosed in the Company's financial statements.

For further information:

Karen Snook, Chief Financial Officer, Rutter Inc. [phone]