MONTREAL, Jan. 31, 2012 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW) has filed 2011 annual financial reports. Financial highlights for the fiscal year ending September 30, 2011 were as follows:
- 2011 Net Sales of $ 2,520,639 compared to $ 1,209,696 in 2010, an increase of 108%
- Fourth Quarter 2011 Sales of $ 1,153,120 compared to $ 543,413 in Q4 2010, an increase of 112%
- 2011 Gross Profit of ($ 131,722) (-5.2%) compared to $ 19,839 in 2010 (1.6%)
- 2011 Operating Expenses of $ 657,032 compared to $ 1,523,530 in 2010, a reduction of (56.9%)
- Fourth Quarter 2011 Op Ex of $ 99,398 compared to $ 394,377 in Q4 2010, a reduction of (79.9%)
- 2011 Net Earnings of ($ 935,103) compared to ($ 1,646,156) in 2010
- Confirmed Orders on hand of $ 1,430,000 at September 30, 2011
Note: These are the financial highlights only. Management`s Discussion and Analysis, the consolidated financial statements, cash flows, and notes thereto of Sofame Technologies Inc. are available at www.sedar.com.
Comments on the year ended September 30, 2011
Net sales totaled $ 1,153,120 during the fourth quarter of 2011, an increase of $ 609,707 (112%) over Q4 2010. All revenues were derived from shipments of heat recovery equipment to Canadian and American customers. This brought annual sales to $ 2,520,639, an increase of 108% ($ 1,310,943) over 2010 annual sales of $ 1,209,696.
Selling expenses in 2011 were slashed by $ 482,292 (64.1%) from 2010. Administration expenses were cut by $384,206 (49.8%) to $387,061 in 2011, and to $56,912 in the fourth quarter, down from $290,265 in the same quarter of 2010 - a reduction of 80.4%. Depreciation and amortization for fiscal 2011 were $ 289,827, compared to $309,050 in 2010. The Company had cash bank balances in the amount of $ 110,150 as at September 30, 2011 compared to $177,881 at the end of the fiscal year 2010.
In the fourth quarter of 2011, the Sofame recorded a ($ 221,002) loss on equipment shipped, principally consisting of completing the installation and start-up of the large and innovative Sofame Steam Pump® system sold to a university in New Jersey. Patents on the Steam Pump product are in the process of being filed in North America, Europe, China, India, Brazil and Japan. The system is considered innovative and has been proven during tests conducted at Sofame to reduce NOx emissions on large boilers by up to 90%. The product is ideal for campus heating plants. Management and Board believe the Steam Pump offers opportunities for comparatively significant revenue generation in full scale applications.
The highlight of Q4 was the receipt of three new orders for Sofame water heating systems and one non-binding letter of intent representing a total value of $1.73 million. All four projects are scheduled for delivery in Sofame's 2012 fiscal year. The management team at Sofame is confident that with low overhead costs, contracts in hand, and seasoned leaders experienced in the HVAC industry at the helm of the company, the 2012 fiscal year has begun positively.
In a separate comment, management stresses that the Company did not issue 40,764,439 on January 19, 2012. On that date, the TSX Venture Exchange granted final approval of a debt to share transaction which was recorded on October 26, 2010. There are currently 147,658,652 common voting shares outstanding.
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.
For further information:
| John Gocek
President & CEO
(514) 523-6545 x200
| Stone Communication Services