TORONTO, June 29, 2016 /CNW/ - Cencotech Inc. (CTZ –
TSX-V) today reports the results of operations for the first
six months and the second quarter of fiscal 2016 ended April 30th. All amounts referenced
herein are in Canadian dollars. Revenue for the second quarter was
$561,021 as compared to $452,622 for the same period last year. Net
income before tax for the quarter of $163,536 ($0.01 per
share) was recorded as compared to $155,555 ($0.01per
share) for the three months ended April
30th, 2015.
Revenue for the first six months of fiscal 2016 was $1,056,308 as compared to revenue in the same
period last year of $799,194. The
Company recorded net income before tax of $416,616 ($0.02 per
share) in the six months ended April
30th, 2016 as compared to $388,311 ($0.01 per
share) in the same period last year.
The Company has chosen to compare year over year Comprehensive
Income before taxes because the Company is not yet taxable due to
losses in previous years. In fiscal 2015, with the concurrence of
the Company's auditors, the tax loss carry forwards were assigned a
present value and capitalized in the Company's accounts. Fiscal
2016 Comprehensive Income reflects the taxes which would have been
payable had the Company been taxable. The tax amount for each
period is in turn charged against the capitalized tax asset. Prior
to the capitalization of such losses, the accounting protocol
assumed no taxes were payable. For comparison purposes, therefore,
Comprehensive Income before taxes is the appropriate metric.
As the bulk of the Company's sales are in US dollars,
fluctuations in the exchange rate between Canadian and US dollars
impact reported income. Revenues are converted to Canadian dollars
when sales are completed and booked. Foreign exchange adjustments
are then required when payments are actually received. This foreign
exchange adjustment negatively impacted stated Comprehensive Income
in the Quarter ended April 30, 2016
by $67,076. However, for the six
month fiscal period the foreign exchange loss was only $11,467. This compares to fiscal 2015 foreign
exchange losses of $31,955 for the
quarter and a gain of $51,329 for the
2015 fiscal half year.
The consolidated financial statements and Management's
Discussion and Analysis for the fiscal quarter ended April 30th, 2016 are available under
the Company's profile on SEDAR at www.sedar.com.
K. Barry Sparks, the President of
the Company stated: "The Company is continuing to make progress in
moving new product sales opportunities forward, particularly with
respect to its Cirreon SaaS and related software offerings. New
customers 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 as noted
previously, this reduces the recording of one time larger licence
sales completions, the Company is completing more deals on a
contracted 'pay as you go' usage basis. Total recurring contracted
software revenue accounted for in excess of 73% of total sales in
the quarter ended April 30, 2016.
As noted earlier, Management's challenge for the Namsys team is
to continue to grow distribution. Management are working diligently
to assist existing distributors to expand the use of our products
in their networks and at the same time are initiating new
distributors to offer our products through their networks. The
Company expects to continue to make strides in achieving greater
revenue and higher profits in 2016 and beyond."
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.