TORONTO, Feb. 26 /CNW/ - Cencotech Inc. (CTZ - TSX-V) announced today, the results of operations for its fiscal year ended October 31st, 2007. All amounts referenced herein are in Canadian dollars. Revenue for the fourth quarter of 2007 was $218,492 as compared to $1,317,373 for the same period last year. A net loss of $59,957 or ($0.00) per share was recorded for the three months ended October 31st, 2007 as compared to a net gain of $644,522 or $0.03 per share for the same period last year.
Revenue for the twelve months ended October 31st, 2007 was $1,041,203 plus a gain of $1,351,319 as a result of the sale of all patents and trademarks for the Company's Commercial Self Service products in the first quarter 2007. This compares to revenue of $1,976,348 for the year ended October 31, 2006. The Company recorded net income of $678,754; $0.03 per share in the twelve months ended October 31st, 2007, as compared to $209,517; $0.01 per share for fiscal 2006.
K. Barry Sparks, the President of Cencotech, stated: "While order generation for the CashNet product during the quarter was strong, the supply line disruption as a result of the manufacturer of the product moving production facilities from Canada to Texas resulted in minimal production and order completion. The transition of manufacturing facilities was exacerbated by a decision to bring forward a new version of the CashNet products concurrent with the move. The Company has been working closely with the manufacturer to bring the new products on line as quickly as possible. Nevertheless, steady state manufacturing of the new CashNet products will not be achieved until March/April, 2008."
Mr. Sparks continued: "Software license sales and consulting revenues will have to pick up the slack created by the delay in hardware product deliveries through mid second quarter 2008. While as noted earlier, the sales cycle for the Company's software tends to be quite lengthy, we remain optimistic with respect to the future of all the Company's products, as we look at the possibilities for continuing growth."
The Company also announced the completion of extension agreements with its convertible debenture holder and its secured debt provider to extend the term on these facilities to September 30, 2008. Cencotech is also pleased to announce the appointment of Christopher Adams as Chief Financial Officer of the Company; he replaces E. Christopher Stait-Gardner who has been interim Chief Financial Officer since September 2007.
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, large retailers, public transportation operations and the gaming industry. Cencotech's proprietary software products for this market are "open-architectured" and have been developed to interface with clients' legacy systems.
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information contained in this release. This Media Release may contain
forward-looking statements, which reflect the Corporation's current
expectations regarding future events. The forward-looking statements
involve risks and uncertainties. Actual events could differ from those
projected herein and depend on a number of factors including the success
of the Corporation's sales strategies.