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Mississauga, ON - February 1, 2012 - Pioneering Technology Corp. ("Pioneering" or the "Corporation") (TSX Venture: PTE), an energy smart product innovation and consumer goods company, today announced its financial results for year ended September 30th 2011. The Company's audited financial statements for the year ended September 30, 2011, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at www.sedar.com.
"We established ambitious goals for 2011 and achieved them," said Kevin Callahan President and CEO of Pioneering Technology. "We believe in our technologies and in 2011 the marketplace continued to recognize, mandate and demand these solutions. Our products continue to gain recognition and a reputation with new and existing customers as being extremely effective fire prevention, energy and cost savings devices."
Business Highlights
In fiscal 2011, Pioneering successfully implemented several initiatives that management believes will position it well for future growth. These initiatives include:
-investing in direct sales resources in both the U.S. and Canada;
-creating new end user demand in social, university and military multi-residential housing markets by focusing on the Safe-T-element value proposition and positive return-on-investment;
-securing additional third party support/requirements from key influencers and mandates from housing management organizations;
-targeting larger distributor partnerships with broader "feet-on-the-street" coverage committed to selling the Company's products;
-working towards developing and commercializing retail sales opportunities from new product platforms and from the Company's existing product platforms; and
-developing a comprehensive marketing program to leverage the success of the Safe-T-sensor product to date in the University channel.
Financial Highlights
------------------------------------------------------ | |Three Months Ended |Year Ended | | |September 30, |September 30, | | |($) |($) | | |---------------------------------------| | |2011 |2010 |2011 |2010 | |----------------------------------------------------| |Revenue |862,929 |640,794 |2,192,486|2,880,518| |----------------------------------------------------| |Gross Profit|573,446 |282,743 |1,366,986|1,557,803| |----------------------------------------------------| |Net Income |(37,108) |(34,820) |167,499 |78,457 | ------------------------------------------------------
For fiscal 2011, revenue decreased approximately 24% to $2,192,486 as compared to revenues of $2,880,518 in fiscal 2010. This decline, largely the result of the significant decline in shipments to U.S. customers during the second and third quarters, was partially offset by higher orders in the fourth quarter and an increase in gross margin from 54% in 2010 to 62%. The margin increase from fiscal 2010 to fiscal 2011 was due to a new Safe-T-element ("STE") pricing model and higher sales volume and margins from the Safe-T-sensor ("STS"). The Company reported net income of $167,499, a 104% increase over net income of $78,457 in 2010 and a basic and fully diluted income per share gain of $0.01 versus $0.004. Net income increased despite lower sales largely due to a one-time gain associated with proceeds realized by the Company on its investment in Adenyo Inc. In addition, the Company ended fiscal 2011 with a stronger working capital position, having positive working capital of $788,357 and 2.03 as a ratio of current assets to current liabilities. This compares to positive working capital of $302,022 and 1.39 as a ratio of current assets to current liabilities as at the end of fiscal 2010.
2011 Market Successes
In 2011, the Company enjoyed a number of significant market successes for the STE and STS products. Some of these successes include:
Pioneering`s STE positioned and recognized as an investment versus a capital expense. The fundamental shift in the way housing providers and legislators view the STE product has positioned the technology for consideration as an investment that will generate permanent, on-going cost savings and a positive return on investment. These savings can ultimately be re-purposed by housing providers and legislators to deliver additional and/or improved services to their communities.
First city in North America mandates use of high end heat limiting technology. Wilson, North Carolina was the first city in North America to pass an ordinance (legislation) requiring that all electric ranges in tax-supported housing include "high end heat limiting technology" - meaning that all new or replacement electric coil ranges must be equipped with this technology and all existing ranges must either be replaced or retrofitted with "heat limiting technology" within the next 3 years. The STE is patented and the only technology that delivers high end heat limits.
Resolution supporting high end heat limiting technology passed by State Fire Chiefs representing ten U.S. States. The Southeastern Association of Fire Chiefs, a division of the International Association of Fire Chiefs board of directors passed a resolution in support of "high end heat limiting technology" on electric coil ranges. The STE is patented and the only technology that delivers high end heat limits.
Resolution supporting high end heat limiting technology passed by the Canadian Association of Fire Chiefs. The Canadian Chief's resolution also supports a modification of provincial, territorial and federal agency regulations to allow for this new safety technology to be utilized and will promote the technology by whatever means necessary in an effort to reduce or eliminate stovetop cooking fires. The STE is patented and the only technology that delivers high end heat limits.
Pioneering's Safe-T-sensor significantly reduces fire department responses. Ohio University reported a 92% reduction in microwave cooking related fire runs/nuisance calls versus the same period a year ago after installing 4,479 Safe-T-sensors on microwave ovens in residential housing across campus. This results in a savings of $2,000 per run. Ohio experiences approximately 300 runs per year. Pioneering was issued a U.S. patent for the STS technology in November 2011.
85% of the largest subsidized housing providers in Ontario have mandated the STE technology. More and more housing providers throughout Canada and the US are mandating the product for use in their properties and most recently making it law. City Housing Hamilton is the latest, passing a mandate requiring that all electric ranges must now include the STE.
STE recognized as an "energy savings technology". The STE is now being marketed as an energy efficient technology solution for large multi-residential energy efficiency initiatives. Johnson Controls, an industry leading Energy Service Contract Organization (ESCO), now has a number of projects for which the STE is being included.
STE wins Canadian Innovation Award. During the period Pioneering Technology was honoured with the Innovations@Work award presented by Rogers Communications Inc. and PROFIT Magazine for its patented STE cooking system technology. This is the only award of its kind in Canada, which celebrates the next generation of innovative small companies.
About Pioneering
Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. The patented Safe-T-element(R) cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. The patented Safe-T-sensor is designed to detect burning conditions in microwave ovens shutting it off before it causes a fire or triggers a fire alarm. Pioneering trademarks include Safe-T-element(TM), Safe-T-Sensor(TM), Powergrill(TM), Battery Eliminator(TM), Powerpak(TM) and the Hydro-free Furnace Fan(TM). For more information visit: www.pioneeringtech.com.
For further information contact: Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
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