MONTREAL, QUEBEC — (Marketwired) — 04/29/15 — SENSIO Technologies Inc. (“SENSIO” or the “Company”) (TSX VENTURE: SIO) today released its financial results for the third quarter of the 2014-2015 fiscal year. The Company–s revenues amounted to $102,881 for the quarter, down 34.1% compared to the third quarter of the previous fiscal year. For the first nine months of the fiscal year the Company–s cumulative revenues amounted to $1,304,170 compared to $596,040 as at February 28, 2014, up $708,130 or 118.8%. Meanwhile, operating expenses amounted to $720,314 in the third quarter compared to $1,037,800 in the corresponding quarter the previous year, down $317,486 or 30.6%. All in all, the Company posted a net loss of $601,768 for the third quarter compared to a loss of $895,874 for the third quarter of the previous year, a decrease of $294,106 or 32.8%. Finally, the cumulative loss for the current year amounted to $588,189, an improvement of $2,201,249 or 78.9% compared to the first nine months of the previous fiscal year.
“Growth in revenues and the number of new 3DGO! users was more sluggish than expected in the third quarter in view of the sequential-and therefore slower than anticipated-deployment on LG–s various platforms,” commented Nicholas Routhier, President and CEO. “But our financial performance was still improved on a comparative quarterly basis thanks to our strict cost control. Now that deployment on all LG platforms in North America is a reality and we–ve launched 3DGO! in Canada, we–ve started to put our growth plan into action along with its multiple marketing initiatives. From now on our attention will be focused completely on growth and even though we may be a quarter behind in achieving our plans, we remain confident that we can catch up in the coming quarters.”
Highlights of the third quarter ended February 28, 2015
Consumer electronics market – Lower revenues
Licensing revenues from the consumer electronics market amounted to $74,095 in the third quarter compared to $118,101 in the corresponding quarter the previous year, a decrease of $44,006. This expected decrease in licensing revenues is explainable by Vizio–s discontinuing its sale of 3DTVs and the signing in the previous quarter of a new agreement with Wi-LAN. Given the usual time frame needed to negotiate patent licensing agreements with the manufacturers, the initial results are not expected for a few more quarters.
“The results of the last quarter are in line with what we expected further to the signing of the agreement with Wi-LAN and the fundamental change in SENSIO–s business model, which is now focused on the home distribution of 3D content,” commented Routhier. “We expect that licensing revenues will stay at the current level for the rest of 2015, as we wait for Wi-LAN to sign new deals, while technology licensing revenues will remain stable. But we must not underestimate the important commercial potential of our patent licensing programs in the medium term and we remain firmly convinced that Wi-LAN will be able to generate substantial revenues for SENSIO in the coming years, as was the case in the first nine months of this year and in previous years.”
3DGO! – Continued expansion of the user base in the third quarter
The number of users registered for 3DGO! continued to progress in the third quarter, from 21,634 to 23,363, an increase of 1,729 users during the period. The vast majority of this growth is from the owners of Vizio 3DTVs, while the deployment with LG was not yet completed at the close of the third quarter.
The 3DGO! video-on-demand service generated $28,786 in revenues during the period, and a total of $59,949 for the first nine months of the year compared to $64,635 for the first nine months of the previous year.
“3DGO!–s performance in the third quarter reflects the delay in the launch of 3DGO! on all of LG–s platforms in North America and the consequential postponement of the marketing initiatives,” explained Routhier. “In view of this delay, our target of 50K users is also postponed and we are now mobilizing all efforts to catch up as soon as possible. Meanwhile, what the most recent quarter–s results do not reflect are the numerous measures put in place to improve the service and get ready for the expansion. Be it customer service, the registration process or the introductory program for new customers, the promotion of new releases to the clientele, the robustness of the lower bitrate service (2Mbps), the international version of 3DGO!, DTS 5.1 audio, and much more, every aspect of 3DGO! has been improved significantly during the quarter. The continued growth in the number of users from Vizio in the absence of new 3DTV sales testifies to the efficacy of these measures. Since the close of the quarter and the launch on all of LG–s platforms, the majority of new users will now come from the owners of LG–s 3DTVs and we are seeing a rise in recruitment and rentals. As a result, we are very positive and enthusiastic about the expansion of 3DGO! activities in the coming quarters.”
For more details about this quarter–s results, please see the Management Discussion and Analysis and the Financial Statements on the SENSIO Website:
About SENSIO
Founded in 1999, SENSIO Technologies Inc. () is a pioneer in the field of stereoscopic 3D imaging and of 3D content offering at home. For over 15 years, SENSIO has been developing, patenting and marketing advanced 3D image processing technology providing superior image quality as well as a simple user friendly experience. Its award-winning technology, SENSIO ® Hi-Fi 3D, can be found in millions of products for the cinema, distribution and consumer electronics markets worldwide.
Today, SENSIO uses its technologies and 3D expertise to deliver its video-on-demand service, 3DGO!, the first 3D-dedicated service offering Hollywood blockbuster movies directly to consumers. SENSIO works with some of the biggest brands in the consumer electronics industry and the film industry to become the destination of choice for 3D movie fans. 3DGO! aims to become the largest distributor of 3D content for the consumer market in the world.
SENSIO is listed on the Toronto TSX Venture Exchange (SIO).
Caution Concerning Forward-Looking Statements
Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management–s discussion and analysis of SENSIO for the quarter ended February 28, 2015. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management–s current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
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.
SENSIO® is a registered trademark of SENSIO Technologies Inc.
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SENSIO Technologies Inc.
Eric Choquette
Chief Financial Officer
+1 514-846-2022
Renmark Financial Communications Inc.
Barry Mire:
Robert Thaemlitz:
(416) 644-2020 or (514) 939-3989
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