F2022 Revenue Guidance Is For Between
$26 Million And $28 Million
- Fiscal 2021 revenue increased 25% to $23.7 million;
- Delivered 685 security scanning systems up from 526 sold in
fiscal 2020;
- Gross margin improved to 34% from 30% as Company continues to
benefit from cost reduction initiatives and product mix;
- Industry leading features and technology are leading to a
growing pipeline in new verticals such as the U.S. Federal
Government and the global air cargo market;
- Significant strengthening of executive team with key hires of
seasoned industry veterans;
- Company provides guidance for F2022 of revenue of between
$26 million to $28 million representing growth of 10%-18%,
despite a weaker than anticipated Q1/F22 due to the impact of
Omicron.
MONTREAL, Feb. 28, 2022 /CNW Telbec/ - VOTI Detection Inc.
("VOTI" or "the Company") (TSXV: VOTI), a leading-edge Canadian
technology company that develops the latest-generation X-ray
security systems based on 3D Perspective™ technology, announces
results for its fiscal year ended October
31, 2021, and guidance for F2022. Unless otherwise
noted, all dollar amounts are Canadian dollars. Please refer to the
audited condensed Consolidated Financial Statements and
Management's Discussion and Analysis (" MD&A ") for the twelve
months ended October 31, 2021 filed
on SEDAR at www.sedar.com for more information.
"Although our 25% year-over-year revenue increase was tempered
by the slower than expected recovery from the pandemic's fourth
wave, our sales pipeline returned to pre-pandemic levels as we
exited the first quarter of fiscal 2022," said Rory Olson, President and CEO of VOTI Detection.
"While some customers have pushed orders to future quarters due to
the emergence of the Omicron variant, we are already seeing a
rebound in orders and anticipate continued, strong growth in Fiscal
2022. New and recurring orders are set to ship in the second
quarter of Fiscal 2022 and accelerate into the third and fourth
quarters."
For a discussion of risks related to the Covid-19 pandemic,
please see VOTI`s MD&A filed today under VOTI`s profile at
www.sedar.com
VOTI's Matrix Scanning Systems Receive Approval from Major
U.S. federal Agency
On February 14,
2022, VOTI announced that a large U.S. federal agency with
global facilities had approved the Company's XR3D-60s and XR3D-60
MATRIX Small Package X-Ray scanning systems for purchase.
VOTI's systems now qualify as an alternative solution to the
current small package X-ray scanners currently in use by the
agency's network. The U.S. federal agency's approval follows VOTI's
recent deal with Global Affairs Canada validating the evolution of
VOTI's leading technology MATRIX systems and cementing the
Company's position as a key supplier of security equipment to top
tier government agencies. The Company confirmed that it had already
received the first landmark order, and additionally, as a result of
the purchase approval, there is the potential for significant
additional revenues to be generated in 2022 and beyond.
Financial Highlights
(Unaudited, all amounts are in
Canadian dollars)
Period Ended
October 31
|
Q4
2021
|
Q4
2020
|
Change
|
FY
2021
|
FY
2020
|
Change
|
Revenue
|
5,889,970
|
4,852,379
|
1,037,591
|
23,695,236
|
19,013,905
|
4,681,331
|
Gross
profit
|
1,671,746
|
1,197,758
|
473,988
|
8,017,980
|
5,696,891
|
2,321,089
|
Gross margin
%*
|
28%
|
25%
|
3%
|
34%
|
30%
|
4%
|
Net loss
|
(1,040,755)
|
(2,216,449)
|
1,175,694
|
(6,064,758)
|
(6,735,410)
|
670,652
|
Adjusted net income
(loss)*
|
(1,991,892)
|
(1,412,863)
|
(579,029)
|
(5,715,584)
|
(6,070,956)
|
355,372
|
Adjusted
EBITDA*
|
(1,005,182)
|
(511,848)
|
(493,334)
|
(1,101,024)
|
(2,942,275)
|
1,841,251
|
Cash (used in)
from
|
|
|
|
(171,347)
|
(1,515,004)
|
1,343,657
|
operating
activities
|
Revenue
Revenue for the three-month period
ended October 31, 2021, totaled
$5.9 million compared to $4.9 million for the same period in Fiscal 2020,
an increase of $1.0 million or 21%.
The Company sold 170 security scanning systems compared to 136
during the same period in Fiscal 2020. The increase is
primarily attributed to the greater number of systems sold,
partially offset by a decrease in the average selling price per
scanner resulting from the change in the US dollar foreign exchange
rate.
Revenue for the fiscal year ended October
31, 2021 totaled $23.7 million
compared to $19.0 million in Fiscal
2020, an increase of $4.7 million or
25%. The Company sold 685 security scanning systems compared
to 526 in Fiscal 2020. The increase in revenue is primarily
attributed to the greater number of systems sold during the period,
the Company's first-time sales of its VotiINSIGHTS fleet management
and analytics dashboard, an increase in the average price per
scanner resulting from the change in product mix sold, and an
increase in after-sale services and extended warranties, partially
offset by the decrease in the US dollar foreign exchange rate.
Gross Profit
Gross profit for the three-month
period ended October 31, 2021
increased to $1.7 million or 28% of
revenue, compared to $1.2 million or
25% of revenue, for the same period in Fiscal 2020, an increase of
$0.5 million or 3% of revenue,
representing a 41% improvement year over year. The 300bp increase
in gross margin is primarily due to a decrease in the average
component cost per scanner resulting from the cost reduction
initiatives that were executed by the Company and an increase in
after sales services profitability and increase in extended
warranty as a percentage of overall revenue, which carry higher
margins, and partially offset by an increase in freight costs
allocated to inventory being sold.
Gross profit for the year increased to $8.0 million or 34% of revenue, compared to
$5.7 million or 30% in Fiscal 2020.
The 4% increase in gross margin compared to Fiscal 2020 is
primarily due to a decrease in the average component cost per
scanner resulting from the cost reduction initiatives that were
executed by the Company, and the Company's first time sales of its
VotiINSIGHTS fleet management and analytics dashboard, partially
offset by an increase in freight costs allocated to inventory being
sold and certain scanner sales with low margins.
Net Loss
Net loss for the three-month period
decreased to $1.0 million compared to
$2.2 million net loss for the same
period in Fiscal 2020. The decrease in net loss of $1.2 million is primarily related to the increase
in gross profit, a decrease in net financial expenses, general and
administrative expenses, research and development expenses,
increase in non-cash gain from changes in fair value of embedded
derivative, and the increase in the non-cash gain from change in
fair value of warrants, partially offset by an increase in selling
and distribution expenses, and decrease in gain from non-cash
share-based payments.
Net loss decreased to $6.1 million
compared to $6.7 million net loss in
Fiscal 2020. The decrease of $0.6
million is primarily related to the increase in gross
profit, decrease in general and administrative expenses, a decrease
in non-cash share-based payments expenses, and an increased gain in
the change in fair value of warrants, partially offset by increased
loss in change in fair value of embedded derivatives and increased
net financial, research and development and selling and
distribution expenses.
Adjusted EBITDA*
Adjusted EBITDA for the three-month period ended October 31, 2021 decreased to ($1.0 million) compared to a negative $0.5 million for the same period of Fiscal 2020.
The decrease is primarily related to the increase in net operating
expenses, partially offset by an increase in gross profit.
Adjusted EBITDA for the twelve-month period ended October 31, 2021 increased to ($1.1 million) compared to ($2.9 million) for the same period of Fiscal 2020.
The increase of $1.8 million is
primarily related to the increase in gross profit and a decrease in
net operating expenses.
Cash Flows
Net cash used in operating
activities during the fiscal year ended October 31, 2021, decreased by $1.3 million when compared to Fiscal 2020 year
end.. The decrease in net cash used in operations is primarily due
to the improvement of the Company's cash-based operating results in
Fiscal 2021, partially offset by the impact from the change in the
Company's non-cash working capital.
Outlook for F2022
The Company is providing
guidance for revenue of $26 million
to $28 million, up 14% y/y at the
midpoint. While Q1 has been negatively impacted by the
Omicron variant with expected revenues of $4
million, visibility has been improving and Q2 should see
strong sequential growth and the second half of the year should see
strong year-over-year growth. Management anticipates gross
margin to be in the range of 36%-38% and anticipates to exit F2022
in a positive EBITDA position.
Fiscal 2021 Yearend Results Conference Call:
When: March 1st, 2022
at 9:00 a.m. ET.
Dial in number: (+1) 888 390 0546, (+1) 416 764 8688 or (+1) 514
225 6995
Conference call replay available until Tuesday, March 8th, 2021.
Recording Playback Number: (+1) 888 390 0541
Playback passcode: 334414#
To access the webcast, click on this link:
https://produceredition.webcasts.com/starthere.jsp?ei=1531842&tp_key=095474aec9
The conference ID is 79334414.
A full version of VOTI Detection Inc.'s Fiscal 2021 Yearend
Management's Discussion and Analysis (MD&A) and consolidated
financial statements for the year ended October 31, 2021 are available on
www.sedar.com.
*Non-IFRS Financial Measures
Certain financial and
non-financial measures included in this news release, including
Adjusted EBITDA, Gross margin percent and Adjusted net loss, do not
have a standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other companies. The
Company includes these measures because it believes they provide to
certain investors a meaningful way of assessing financial
performance. For a more complete description of these measures and
a reconciliation of VOTI's non-IFRS financial measures to financial
results, please see VOTI's Management Discussion and Analysis for
the third quarter ended July 31,
2021.
VOTI's definition of the non-IFRS terms are as
follows:
Gross margin percent is defined as Gross profit
divided by Revenue.
Adjusted EBITDA is defined as net income or loss before net
finance expenses, depreciation and amortization expense and income
tax expense, share-based compensation expenses and items that
Management believes do not necessarily arise as part of the
Company's normal day-to-day operations and could distort the
analysis of trends in business performance.
Adjusted net loss is defined as net loss adjusted for
share-based compensation and items Management believes do not
necessarily arise as part of the Company's normal day-to-day
operations and could distort the analysis of trends in business
performance.
About VOTI Detection
VOTI Detection, headquartered in
Montreal, Quebec, and listed on
the TSX Venture Exchange, is a leading-edge Canadian technology
company that develops latest-generation X-ray security systems
based on 3D Perspective™ technology. VOTI's technology produces
remarkably sharp and more revealing X-ray images that are
competitively superior while delivering enhanced threat detection
capabilities and an improved user experience. Since its inception,
VOTI has installed scanners in more than 50 countries and has
consulted heavily with government agencies and security specialists
worldwide to develop feature-rich and easy-to-use scanners that
meet the sophisticated needs of modern security screening
operations. www.votidetection.com
Notice regarding forward-looking statements:
This release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") which the meaning of applicable securities laws.
Forward-looking statements may relate to VOTI's financial outlook
and anticipated events or results and may include information
regarding VOTI's financial position, business strategy, growth
strategies, addressable markets, budgets, operations, financial
results, taxes, plans and objectives. Particularly, information
regarding VOTI's expectations of future results, performance,
achievements, prospects or opportunities or the markets in which it
operates and the impact thereon of the ongoing COVID-19 pandemic
declared by the World Health Organization on March 11, 2020 ("COVID-19"), as well as
statements relating to expectations regarding industry trends,
growth rates, expectations regarding revenue and the revenue
generation potential, business plans and strategies, VOTI's
competitive position in its industry, VOTI's expectations relating
to its rollout of its next generation MATRIX Series
line of X-Ray scanners and the results associated
therewith and its projections and forecasts relating to its
expectations that it will return to or exceed pre-pandemic sales
and gross margins constitute forward-looking statements.
In some cases, when used in this release, the words ''may'',
''would'', ''could'', ''will'', ''intend'', ''plan'',
''anticipate'', "does not anticipate", ''believe'', ''seek'',
''propose'', ''estimate'', ''project'', ''expect", "does not
expect", "forecasts", "projection", "prospects", "outlook",
"targets", or similar expressions, variations of such terms or the
negative of such terms are intended to identify forward- looking
statements. Such forward-looking statements reflect VOTI's
then current views with respect to future events based on certain
material facts, assumptions, opinions and estimates in light of
management's experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors VOTI currently believes are appropriate and
reasonable in the circumstances and as of the date such
forward-looking statements are made. Despite a careful process to
prepare and review the forward-looking statements, there can be no
assurance that the underlying opinions, estimates and assumptions
will prove to be correct. The forward- looking statements are based
on certain key expectations and assumptions made by VOTI, including
expectations and assumptions concerning availability of capital
resources and ability to finance, business performance, market
conditions, and customer demand. Although VOTI believes that the
expectations and assumptions on which such forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements since no assurance can be
given that they will prove to be correct.
Forward-looking statements are necessarily based on a number
of opinions, estimates and assumptions that VOTI considered
appropriate and reasonable as of the date such statements are made,
are subject to certain known and unknown risks and uncertainties
that may cause the actual results or events to differ materially
from anticipated in such forward-looking statements, including
without limitation risks regarding the threat detection technology
industry, failure to obtain regulatory approvals, or changes in
regulatory environment, economic factors, management's
ability to manage and to operate the business of VOTI, the equity
markets generally and risks associated with growth and competition,
in addition to other risks identified in VOTI's most recently filed
management's discussion and analysis and in other publicly filed
documents under VOTI's profile at www.sedar.com as well as other
unknown risks.
Many factors could cause VOTI's actual results, performance
or achievements to vary from those described in this release,
including without limitation those listed above, as well as the
assumptions upon which they are based proving incorrect. These
factors should not be construed as exhaustive. Should one or more
of these risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual
results may vary materially from those described in this MD&A
as intended, planned, anticipated, believed, sought, proposed,
estimated or expected, and such forward-looking statements should
not be unduly relied upon. VOTI does not intend, and does not
assume any obligation, to update these forward-looking statements
except as required by law. The forward-looking statements contained
in this release are expressly qualified by these cautionary
statements. Forward-looking statements contained in this release
about prospective results of operations, financial position or cash
flows are based on assumptions about future events, including
economic conditions and proposed courses of action, based on
management's assessment of the relevant information currently
available. Readers are cautioned that outlook information contained
in this release should not be used for the purposes other than for
which it is disclosed herein or therein, as the case may be. In
addition, the current situation and future developments with
respect to COVID-19 could cause certain of the assumptions and
information set forth herein or the fact that on which such
assumptions are based to differ materially from previous
expectations including in respect of demand for VOTI's products,
supply chain and availability of materials, mobility and shipping
of materials and or products, access to debt and equity capital and
other factors.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE VOTI Detection Inc.