Open EC Technologies, Inc.
TSX VENTURE : OCE

Open EC Technologies, Inc.

February 26, 2010 15:38 ET

Open EC Technologies, Inc. Reports Second Quarter, Fiscal 2010 Results, New CFO and Director

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2010) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) announced today sales revenue for the second fiscal quarter $170,001 with EBITDA from continuing operations of ($87,189).

Highlights of the performance during the three months ended December 31, 2009 are as follows:

The revenues for the quarter were $170,001 with an EBITDA from continuing operations of ($87,189) as compared with revenues of $143,702 and an EBITDA from continuing operations of $12,357 during the same period in the last fiscal year. 

Revenues reported for the six months ended December 31, 2009 were $463,258 compared to $353,213 last year. This represents a 31% increase. This increase was attributable to the increase in software development services during the quarter.

Martyn Armstrong, CEO of Open EC states, "We are on track with the Company's business transition from the sale of our China operations last year, towards our focus in the US HealthCare Information Technology sector. With a good start to our 2010 fiscal year we believe the company is well positioned to continue our revenue growth and moving toward profitable operations." 

The company's available cash, cash equivalents and short term investments at December 31, 2009 was $757,175, slightly improved over the June 31, 2009 balance of $743,450 and the company's liabilities improved with a decrease to $362,965 at December 31, 2009 from $392,721 at June 30, 2009. The company's accounts receivable improved with an increase to $121,310 at December 31, 2009 from $92,857 at June 30, 2009.

Mr. Armstrong continues, "With our available cash stable, increasing accounts receivable, reduced liabilities, the company is in a good position to focus its business development activities more aggressively into the emerging US Healthcare IT sector"

The reported net loss for the quarter ended December 31, 2009 was $110,290, compared to $111,179 last year. The decrease in net loss was due to the fact that there was no income from discontinued operations this year while there was a loss from discontinued operations amounted to $99,744 last year. Loss from continuing operations for the quarter ended December 31, 2009 was $110,290 as compared with the loss of $11,435 last year representing an increase in loss of 864%. The increase in loss from continuing operations was due to the fact that last year the salaries of the then co-CEO amounted to $153,435 were transferred and restated from the Canadian operations to the Chinese operations. Without this transfer, the loss from continuing operations last year would have been $164,870 and there would have been a reduction of $54,580 in this year's loss.

Reported net loss for the six months ended December 31, 2009 was $125,295, compared $94,873 last year. The increase in net loss was due to the fact that there was no income from discontinued operations this year while income from discontinued operations amounted to $62,334 last year. Results for the continuing operations improved substantially. Loss from continuing operations for the six months ended December 31, 2009 was $125,295 as compared with the loss of $157,207 last year representing a reduction in loss of 20%. Last year, the salaries of the then co-CEO amounted to $153,435 were transferred and restated from the Canadian operations to the Chinese operations. Without this transfer, the loss from continuing operations last year would have been $310,642 and there would have been a reduction of $185,347 in this year's loss representing a reduction in loss of 60%.

The comparative financial statements for the three months ended December 31, 2009, along with other information, may be obtained through the Company's website at www.openec.com or on SEDAR at www.sedar.com.

Highlights of CFO Changes and new Director:

The company is pleased to report that Mr. George Dorin has joined the Company as Chief Financial Officer. Mr. Dorin has 30 years of broad-based financial experience, including over 15 years as a VP Finance or CFO for several private and public companies. Mr. Dorin replaces Mr. Gong (Michael) Chen as a CFO, who has resigned as CFO and Director of the Company. The company wishes to express its thanks to Mr. Chen for his years of services and contribution. The changes in CFO are related to the changes in the Company's business focus after the sale of our China operations last year.

Mr. Dorin holds undergraduate degrees in Science and Accounting from the University of British Columbia, a Masters Degree in Finance from the London School of Economics in England, and the Diploma FCSI (Fellow of the Canadian Securities Institute). A Chartered Accountant, he was also granted a CF (Corporate Finance) specialist designation from the Canadian Institute of Chartered Accountants in 2008.

The company is pleased to report Mr. Roy Trivett has joined the board of directors. Mr. Trivett founded, led and grew Architel Systems Corporation (ASC) from start-up through sale in 2000 to Nortel Networks for $600 Million. He is a founding member of Vancouver Angel Investor Network and has held executive and board positions as CEO Visiphor Corporation, law enforcement data sharing software sold to Knowledge Computing Corporation in 2009, acting CEO, Secondsun Entertainment Inc., Playstation based computer games developer and assisted Brainchild Studios in their 3D computer animation business.

About Open EC Technologies Inc.
Open EC is a TSX Venture Exchange listed company. Its subsidiary, SoftCare EC Solutions Inc. is an e-business software, services and solution provider. SoftCare's OpenEC® e-business software includes solutions for Electronic Data Interchange (EDI), Healthcare Interoperability and Business Process Management. The Company sells the OpenEC® products and solutions to the healthcare, financial services and retail supply chain in North America. The company has a growing focus on turnkey solutions for US Healthcare Information Technology Reforms funded by the US Federal Government ARRA programs for Healthcare IT Interoperable mandates. Additional product and solution information is available on the web at www.softcare.com and additional public company information is available on the web at www.openec.com. The Company's common shares trade on the TSX Venture Exchange under the symbol: OCE.

ON BEHALF OF THE BOARD

Martyn A. Armstrong, President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Mr. Martyn A. Armstrong, President & CEO of the Company.

This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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