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ComnetiX(TM) Inc. Reports Second Quarter 2006 Financial Results
ComnetiX(TM) Inc. Reports Second Quarter 2006 Financial Results.
About this update from Currency Exchange International, Corp.
[{"type":"text","content":"\n\n\n\n\nRevenue up 12%, Focused on Executing Growth Strategy\n\nTORONTO, April 12 /CNW/ - ComnetiX(TM) Inc. (TSX:CXI), a leading provider\nof biometric and identification solutions, today reported its financial\nresults for the second quarter of fiscal 2006, the period ended February 28,\n2006. All dollar amounts are in Canadian dollars unless otherwise indicated.\n\"While our revenue growth was affected by contract delays this quarter,\nwe believe that the long-term outlook for ComnetiX is positive. Historically\nour performance has been stronger in the second half of the year and we\nanticipate a similar trend this year,\" said Bernard Crotty, Chief Executive\nOfficer of ComnetiX. \"We are well positioned with a strong offering of\nproducts and services in a growing industry. We have a solid strategy and are\ncommitted to building value for our shareholders.\"\nRevenue for the quarter was $2.9 million, up 12 per cent from $2.6\nmillion in the comparable period last year. The revenue growth is due to the\naddition of Paragon, increasing penetration in the U.S. market and the\ncontinued success of the fingerprinting services group. Fingerprint services\nwon a substantial, three-year contract with a major mining company during the\nquarter. However, revenue for the quarter was affected by delays in closing\nanticipated contracts. The government procurement cycle is difficult to\npredict, but management expects the majority of these contracts to close in\nfuture quarters.\nThe net loss for the period was $1.7 million or $0.12 per share basic and\ndiluted, compared to $0.6 million or $0.05 per share basic and diluted in the\nsecond quarter of 2005. The change is due to a rise in expenses, reflecting\nthe company's continued investment in building its business for long-term\ngrowth. Expenses included costs for integrating Paragon, as well as an\nincrease in personnel and research and development expenditures.\nFor the six-month period, revenue was $6.6 million, a rise of 37 per cent\nfrom $4.8 million in the comparable period last year. The year-to-date net\nloss was $3.2 million or $0.22 per share basic and diluted, compared to $1.4\nmillion or $0.12 per share basic and diluted in the comparable period last\nyear.\n\nFocus on Executing Growth Strategy\n\nComnetiX remains focused on capturing a growing share of the increasing\nmar...