Time 05:01:23 AM
Company SENSIO TECHNOLOGIES INC.
Title SENSIO Releases its Financial Results for the Second Quarter of
CDNX Symbol: SIO
NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: SENSIO Technologies Inc.
TSX VENTURE SYMBOL: SIO
January 29, 2010
SENSIO Releases its Financial Results for the Second Quarter of Fiscal
MONTREAL, QUEBEC--(Marketwire - Jan. 29, 2010) - SENSIO Technologies Inc.
("SENSIO" or the "Company") (TSX VENTURE:SIO) presents the financial
for its second quarter ended November 30, 2009. As in previous quarters,
revenue was primarily generated by the rollout of the SENSIO(R)3D Movie
technology, which is used to broadcast live events in 3D in digital movie
theatres. Two new events were broadcast in the U.S. (ESPN) and Mexico
(Televisa), marking another step toward the viewing of 3D events in the
The quarter was also marked by the introduction and demonstration at the
a 3D digital terminal developed in collaboration with Sagemcom,
SENSIO's lead in the field of 3D broadcasting. "For two years now, we
building this unique infrastructure with a view to the broadcasting of
international events in 3D and the arrival of 3D home viewing. With the
done in the latest quarters, we are in an ideal position to take
the many recent 3D broadcasting announcements," explained Nicholas
Chairman and CEO of SENSIO.
2nd Quarter Highlights
- A 52.1% increase in SENSIO's revenues in the first six months of the
- Distribution of SENSIO technology in digital movie theatres, bringing
total number of movie theatres worldwide to 241.
- Broadcasting of two new live events in 3D, for a total of 15 events in
- Introduction at the IBC of a 3D digital terminal developed in
with Sagemcom, making it possible for consumers to view 3D content at
- Announcement of a $10M bought deal private placement, which closed
From the theatre to the home: new SENSIO(R)3D content
By facilitating the showing of live 3D events through its digital movie
network, SENSIO obtains content encoded in its format that could
distributed in movie theatres and homes simultaneously through video-on-
and Pay-TV. The ESPN event conclusively proved the concept by
movie theatres and various 3D televisions alike. Live 3D events are
SENSIO's strategy for the consumer electronics market, as they supplement
entertainment library (DVDs and video games) already available on the
All the live 3D events broadcast commercially in 2009 were in SENSIO(R)3D
format, thus confirming its leading position in the marketplace.
Introduction at the IBC
During the quarter, SENSIO collaborated with Sagemcom, a digital terminal
manufacturer, on the integration of SENSIO(R)3D technology in one of
devices. With the new 3D terminal introduced at the IBC (International
Broadcasting Convention) in Amsterdam last September, consumers will be
order 3D HD content at home through video-on-demand and Pay-TV.
At the IBC, SENSIO also introduced a new function which is available
SENSIO(R)3D technology: live broadcasting of 2D content in 1080p60. In
to 3D broadcasting, SENSIO(R)3D can also be used to broadcast 2D content
1080p on the current distribution infrastructure, which is now limited to
1080i, without adding another bandwidth. By introducing this new
the Company demonstrated that its technology brings added value to the
transmission of 3D and 2D content, not only in theatres but also at home.
SENSIO also took advantage of its presence at the IBC to meet a number of
European broadcasters and service providers. In the European market, 3D
currently in full swing, as appears from the recent announcements by
Canal + and Orange, to name but a few.
A Private Placement of Over $10 million
During the quarter, SENSIO announced a $10,016,500 bought deal private
placement. The placement, which closed on December 14, 2009, was
by institutional investors. SENSIO plans to use the net proceeds from the
placement to boost its sales and marketing activities, continue its
and development, and protect and enforce its intellectual property
remainder will be used as working capital and for general corporate
Summary of Financial Results
During the second quarter of the 2009-2010 fiscal year, SENSIO generated
revenues of $184,247 compared to $127,901 in the quarter ended November
2008, an increase of 44.1% Most of the revenues generated by the Company
second quarter came from the sale of licences and cards destined for the
digital movie theatre market. SENSIO's gross profit for the quarter was
compared to 89.5% in the previous period. This decrease is explainable by
fact that SENSIO sold a different solution in the European market. To
growing demand, the Company sold both a hardware and a software solution,
reduced its gross profit.
Cost of sales rose from $310,446 in the second quarter of fiscal 2009 to
$340,834 for the comparative quarter in fiscal 2010. This increase can be
chiefly explained by the addition of staff to support marketing efforts
hiring of outside consultants specializing in business development.
During the quarter, R&D expenses rose by 23.8%, from $94,103 to $116,524.
variance is primarily due to departmental salary increases and a
the expenses eligible for the R&D tax credit.
Administrative expenses stood at $315,938 in the second quarter ended
30, 2009 compared to $276,889 in the comparative quarter the previous
increase of 14.1%. The increase can be explained by the hiring of
administrative staff and an increase in professional fees to support the
Company's business development.
Main financial information
Quarter ended Semester ended
November 30 November 30
2009 2008 2009 2008
Sales 184,247 127,901 394,408 259,376
Gross profit 134,471 114,462 254,251 233,125
Net loss 645,194 611,811 1,098,656 971,360
Net loss per common share 0.0140 0.0180 0.0250 0.0286
SENSIO Technologies Inc. (TSX VENTURE:SIO) - With its significant
the field of 3D video, SENSIO develops and markets digital stereoscopic
compression, decompression and formatting technologies for various
screens. Its solutions are in large-scale use by content creators, video-
developers, broadcasters, specialty channels and digital movie theatres,
generating substantial additional distribution income for its clients.
flagship technology, SENSIO(R)3D, enables high-quality distribution of 3D
content on conventional 2D channels (cable, satellite and/or IPTV), and
playback on any 3D display device, including plasma TVs, high-definition
TVs, PCs, and glasses-free 3D displays or projectors for digital movie
and home theatres. SENSIO(R)3D is a true multi-platform format and is
compatible with the existing DVD and Blu-ray players as well as game
including the Xbox(R) and Playstation(R)3. It is the format of choice for
creating recognized 3D gaming experiences. SENSIO is listed on the TSX
Exchange. For further information visit www.sensio.tv.
SENSIO (R) is a trademark of SENSIO Technologies Inc.
Xbox (R) is a trademark of Microsoft Corporation.
Playstation(R) 3 is a trademark of SONY Corporation.
We.Deliver.3D.Today. is a trademark of SENSIO Technologies Inc.
This news release contains forward-looking statements that reflect the
Company's expectations with regard to future events. Actual events could
significantly from those anticipated in this document.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
is defined in the policies of the TSX Venture Exchange) accepts any
responsibility for the adequacy or accuracy of this release.
- 30 -
Evolution Group Inc.
Sylvain Archambault, President
SENSIO Technologies Inc.
Chief Financial Officer
514-846-2022 ext. 17
INDUSTRY: Computers and Software - Software, Media and Entertainment -
Movies/Music Videos, Media and Entertainment - Television
SUBJECT: ERN - EARNINGS
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