Aug. 19, 2010 (Canada NewsWire Group) --
MONTREAL, Aug. 19 /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 third quarter financial reports ending June 30, 2010. Financial highlights of Q3 2010 were as follows:
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- Q3 Net Sales of $318,976 compared to $1,542,085 for the same period in
2009
- Gross Margin of $62,908 (19.7%) compared to $653,819 for Q3 in 2009
(42.4%)
- Operating Expenses of $362,717 compared to $1,102,172 for Q3 in 2009
- Net Consolidated Loss of ($299,809) compared to ($448,353) for Q3 in
2009
- EBITDA of ($182,801) compared to ($87,080) for Q3 in 2009
- Fully diluted loss per share of ($0.0024) compared to ($0.0035) for Q3
in 2009
>>
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 third quarter ended June 30, 2010 are available on the SEDAR website at www.sedar.com.
Outlook for the Fourth Quarter
After a weak start of the 2010 fiscal year, management was forced to undertake a dramatic restructuring. Despite weak revenues, the year-to-date net loss after nine months amounted to ($1,125,152), compared to ($2,023,855) for the same period of the prior year due to cost cutting. The third quarter net loss of ($299,809) includes one-time financial expenses of $52,855 related to registration of the $250,000 bridge loan. In a subsequent event, the Corporation concluded an agreement to convert the debentures to common shares. Debenture holders have voted unanimously to approve the conversion, and the transaction is subject to approval by the TSX Venture exchange. According to the agreement, the conversion price will be $0.05 cents and each common share will be accompanied by a warrant to purchase one additional common share at $0.10 cents valid until August 12, 2012. From July 1, to August 16th, 2010 the Company signed new contracts totalling $1,297,375 bringing the total confirmed order backlog to $2,411,640. These contracts are currently scheduled to be executed during the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011 ending December 31, 2010.
Decisions Voted at the Annual Meeting Held on June 11th, 2010
Sofame shareholders were asked to vote on the re-pricing of the employee option plan to $0.10 cents. This vote did not attract the support of a majority of the disinterested shareholders, therefore, the pricing remains unchanged and 3,835,000 options were either cancelled or forfeited. The shareholders accepted the restructuring of the Board of Directors, and at the first meeting of the New Board, the position of Chief Operating Officer was abolished, and John Gocek, was appointed President and Chief Executive Officer of the Corporation. A request is currently being prepared for the Autorité des marchers financiers to remove the Management Cease Trade Order now that the Company's timely reporting obligations have been met.
About Sofame
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.
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