MONTREAL, June 1 /CNW Telbec/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment for traditional boilers, has filed second quarter financial reports ending March 31, 2010. Financial highlights of Q2 2010 were as follows:
- Q2 Net Sales of $183,057 compared to $289,363 for the same period in
- Gross Margin of ($49,292) (-26.9%) compared to $62,159 for Q2 in 2009
- Net Consolidated Loss of ($182,945) compared to ($708,548) for Q2 in
- EBITDA of ($34,133) compared to ($554,682) for Q2 in 2009
- Fully diluted loss per share of ($0.0018) compared to ($0.0086) for Q2
Note: These are the financial highlights only. Management's Discussion and Analysis, the consolidated financial statements and notes thereto of Sofame Technologies Inc. for the second quarter ended March 31, 2010 are available on the SEDAR website at www.sedar.com.
Sofame reduced operating costs by $437,054 in Q2 2010 compared to Q2 2009. Despite a slow down in shipments due in part to the dramatic restructuring of operations, Sofame was able to improve EBITDA to a sustainable level. The new cost structure and outsourcing of some manufacturing is providing a boost to quality and improving Sofame's competitive advantage in terms of pricing and lead times. Sofame received support from its supply chain partners and customers throughout the second quarter. As a result Sofame was able to close $985,000 in new contracts from April 1st to May 31, 2010. Lower costs and an increase in confirmed orders position Sofame for further improvement in earnings in the second half of the fiscal year. Sofame has also reached an agreement with a partner in the United States to create a US joint venture company. The joint venture plans to leverage Sofame's growing revenues in the US to attract additional capital required to fund profitable growth in that market. The new company will be eligible to supply energy efficiency equipment under the Buy America provisions of the American Recovery and Reinvestment Act.
Repricing of Employee Stock Option Plan
Subject to the approval of the TSX Venture Exchange (the "TSX-V"), all outstanding stock options for the purchase of an aggregate of 8,510,000 common shares of the Company having exercise prices between $0.16 and $0.33 cents per share and expiry dates in 2010 through 2014 have been repriced to the exercise price of $0.10 per share. Pursuant to the policies of the TSX-V, all repriced options will be subject to disinterested Shareholder approval at the Company's 2010 Annual General Meeting of Shareholders scheduled for June 11, 2010. None of the repriced options may be exercised at the amended exercise price until TSX-V acceptance of the stock option repricing following an affirmative vote of the disinterested shareholders at the meeting.
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants, utilities and many more large energy consumers to significantly reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.com.
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.
SOURCE Sofame Technologies Inc.
For further information: For further information: Brian Edelstein, Stone Communication Services, (416) 867-2536, firstname.lastname@example.org; www.stoneco.com