Eurocontrol Technics Inc.
TSX VENTURE : EUO

Eurocontrol Technics Inc.

November 28, 2008 16:49 ET

Eurocontrol Reports Second Quarter Results for Fiscal Year 2009

Continued Strong Revenue Growth

TORONTO, CANADA--(Marketwire - Nov. 28, 2008) - Eurocontrol Technics Inc. (TSX VENTURE:EUO), a Canadian public company specializing in the acquisition, development and commercialization of innovative authentication, verification and energy security technologies, is pleased to report second quarter results for the company's fiscal second quarter 2009 ending September 30, 2008.

JULY 1, 2008 TO SEPTEMBER 30, 2008 HIGHLIGHTS:

Quarterly revenue increased to $ 1.1 Million

Cash generated from operations: $709,419

Shareholder loan repayment: $132,203

Additional four year contract with Rompetrol Group in Romania

Closing of Non-Brokered $340,000 Private Placement

"We are pleased with the results achieved in the second quarter and in particular our expanding relationship with Rompetrol Group and Rompetrol Downstream as part of Rompetrol's Advanced Quality Control Program. Additionally, we continue to make progress in a variety of territories where we have been recently active in tenders and direct sales including Africa, Asia, Eastern Europe, Central and South America." commented Bruce Rowlands, President & CEO Eurocontrol Technics Inc. "Cash generated from operations and new marking programs anticipated in 2009 should allow Eurocontrol to fund growth internally."

FINANCIAL RESULTS

The Company recorded a net loss of $34,798 during the second quarter ended September 30, 2008 compared to a net loss of $272,867 for the comparable period ended September 30, 2007. The Company achieved revenues of $1,057,812 from sales in Uganda and Romania compared to $nil of last year. The Company anticipates achieving continued revenue growth as the Company implements its Petromark™ technology.

Expenses increased by $529,854 over the period from $328,989 for the three months ended September 30, 2007 to $858,843 at September 30, 2008. This increase included two non cash charges to operations, $nil (2007: $27,400) related to stock based compensation for the fair value of options that were granted and/or vested during the period, and $196,107 (2007:$nil) related to the amortization of technology rights. The Company started to generate revenue during the year ended March 31, 2008. The amortization of the technology right is being charged to operations, and on removing these non-cash expenses, administrative and general expenses increased by $361,047 from $301,589 for the three months ended September 30, 2007 to $662,736 for the same period ended September 30, 2008. The increase is primarily attributable to an increase of $299,810 in consulting and management services and $64,279 in marketing and shareholder communication. The increase is a result of increased operating activities in order for the Company to maintain a positive revenue growth pattern.

About Eurocontrol Technics Inc.

Eurocontrol Technics Inc. through its wholly owned subsidiary Global Fluids International S.A. ("GFI") is one of the world's pioneers in developing and implementing innovative molecular marking systems for the oil industry. Through its proprietary Petromark™ integral system, GFI has developed a 4-part solution consisting of a molecular marker, injection, monitoring and control components. Such oil industry cost realities along with GFI's 5-year R&D efforts to create its industry-leading marking solutions, along with access to capital provided by Eurocontrol Technics Inc. allows management to pursue numerous anticipated oil marking opportunities in fiscal 2008 and in years to come.

Cautionary Note Regarding Forward-looking Information

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the future operating and financial performance of the Company, the proposed use of proceeds and the terms of the financing. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially, include, among others, regulatory risks, market risks, competition risks, execution risks, country risks, and lack of a history of profitability. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • Eurocontrol Technics Inc.
    W. Bruce Rowlands
    President and Chief Executive Officer
    (416) 861-5883
    Email: browlands@eurocontrol.ca