LAVAL, QC, May 27, 2016 /CNW Telbec/ - Ergoresearch Ltd (TSXV: ERG) - based in Laval and known under the «Équilibre, orthèses et biomécanique» banner – announces its results for the third quarter ended on March 31, 2016. All dollar amounts in the present release are in Canadian currency.
Results for the third quarter of fiscal year 2016 totaled $3,001,573 decreasing by 9 % compared to revenues of $3,299,994 for the third quarter of fiscal year 2015. This decrease in revenues is partly related to the following elements:
- The evolution of the market, the organization of care and increased competition has negatively affected our products last quarter.
- The Company completed the planned sale of its "Home Care" division
Historically, the quarters ending on December 31st and March 31st are considered as the low season, since the climate typically affects human activity.
Cash flow from operating activities amounted to $(395,605) for the third quarter of fiscal 2016, compared to $(523,605) for the same period last year.
Net loss reached $(150,112) for the third quarter of 2016 compared to a net loss of $(280,197) for the same period last year.
EBITDA reached $58,439 this quarter compared to $(146,227) for the same quarter last year. The Company incurred non-recurring expenses generated by the completion of the implementation of the ERP project.
Mr. Sylvain Boucher, President and CEO stated:
"The Quebec economic climate, the winter season and changes in the organization of care in Quebec are no strangers to lower sales this quarter. With our unique banner « Equilibre, orthèses et biomécanique », our proprietary technologies and our enviable statement of financial position, we are confident that we can capture the opportunities that will be offered in the market. From the perspective of technology, we have successfully passed the critical steps that showed significant uncertainties. The patent application made in April this year on biomechanical analysis systems, is a convincing demonstration of these advancements. Current priorities and the group's development plan include the following objectives:
- Strengthened by our cash position, continue the exploration of potential acquisitions in Quebec and across Canada.
- Continuing to market the OdrA brace.
- Turning a profit from investment in our ERP-Health platform by increasing the group's efficiency and effectiveness.
- Continuing our investments in Research and Development (R&D)"
Ergoresearch is a Canadian company that designs and manufactures cutting edge technologies for the orthopedic industry. The Company holds a portfolio of patents in the bionics field, including the intellectual property used in the Power Knee, the world's only motor-powered AI prosthesis for above-knee amputees. Ergoresearch designed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program and launched OdrA, a new category of orthotic that, with the action of its world-patented distraction-rotation action, revolutionizes the treatment of pain associated with knee osteoarthritis.
Ergoresearch owns the largest orthotics network in Quebec, now known as Equilibre. The Corporation is listed on the TSX Venture Exchange under the ERG symbol.
This document is not intended to encourage the purchase of securities listed on the TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the securities referenced here. Please seek professional advice to evaluate specific securities.
Certain statements in this Press Release contain forward-looking statements and information that may entail certain risks related to uncertainties. Such statements are based on management's expectations and no assurance can be given that potential future results or circumstances described in the forward looking statements will be achieved or will occur, as these statements are subject to numerous uncertainties and risk factors. Such risk factors include, but are not limited to, those related to the Company's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the Company's product, the strength of intellectual property, the success of research and development programs, the trust invested in sub-contractors or their core personnel as well as other risks and uncertainties that are put forth every now and then by the Company in the documents filed with various Canadian securities and exchange commissions and made available at www.sedar.com.
The reader should not give great importance to forward-looking statements as (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypotheses taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.
These statements are correct only on the date on which they were written, and Management disclaims any obligation to revise these statements after any event, circumstance or other situation, except as required by law. All figures are in Canadian dollars, unless otherwise specified.
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 Ergoresearch Ltd
For further information: Sylvain Boucher, President and CEO - Ergoresearch Ltd., Tel.: 450-973-6700, ext. 213, [email protected]