TORONTO, Sept. 24, 2014 /CNW/ - Cencotech Inc.
(CTZ – TSX-V) today reports the results of operations for the
first nine months and the third quarter of fiscal 2014, ended
July 31st. All amounts referenced
herein are in Canadian dollars. Revenue for the third quarter was
$328,792 as compared to $286,553 for the same period last year. Net
income for the quarter of $61,159
($0.00 per share) was recorded as
compared to $29,718 ($0.00 per share) for the three months ended
July 31st, 2013.
Revenue for the first nine months of fiscal 2014 was
$924,159 as compared to revenue in
the same period last year of $790,150. The Company recorded net income of
$182,649 ($0.01 per share) in the nine months ended
July 31st, 2014 as compared to
$52,107 ($0.00 per share) in the same period last
year.
K. Barry Sparks, the President of
Cencotech, stated "As reported previously, the Company is
continuing to make progress in moving new product sales
opportunities forward, particularly with respect to our Cirreon
SaaS and related software offerings. New customers for the
Company's products are increasingly requesting that products be
offered on a "software as a service" basis (SaaS), as opposed to
purchasing a term licence for such software from the Company. While
this reduces the recording of one time larger licence sales
completions, we are completing more deals on a contracted 'pay as
you go' usage basis. Recurring contracted software revenue of
$241,812 accounted for 73.5% of total
sales in the quarter ended July 31st,
2014, as compared to $209,145
in the same period last year."
The Company also announced that it has repaid $200,000 of its outstanding debenture from
operating cash; and has entered into an agreement with the holder
of the debenture as part of the extension of the debenture to
October 31st, 2014. The
debenture holder is a "Labour Sponsored Investment Fund" and due to
legislative changes under which it operates wishes to raise cash
from its present asset holdings. Accordingly, the Company and the
debenture holder have agreed that if the Company can repay a
further $550,000 on the debenture on
or before October 31, 2014, the
holder will waive all interest on the debenture from August 1st, 2014 to the date of
payout, plus any balance on the debenture left after the
$550,000 payment. Management are
working diligently to ensure these payments are made prior to
October 31, 2014.
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.
The TSX Venture Exchange has neither approved nor disapproved of
the 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.
SOURCE CencoTech Inc.