Optimal Geomatics Inc.
TSX VENTURE : OPG

Optimal Geomatics Inc.

June 23, 2009 17:00 ET

Optimal Geomatics Reports Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2009) - Optimal Geomatics Inc. ("Optimal") (TSX VENTURE:OPG) announces its financial results for the second fiscal quarter ending April 30, 2009. Except as otherwise noted, financial information is reported in Canadian dollars.

Financial Results

Revenue for the second fiscal quarter ended April 30, 2009 was $4.4 million, a 33% increase compared to revenue of $3.3 million for the comparable period in 2008, and an increase of 30% when compared to the prior quarter. Gross margin for the three month period ending April 30, 2009 was 18%, a decrease as compared to the gross margin of 27% for the comparable three month period in 2008. The decrease in gross margin was due to several factors including the mix of contracts being performed and the differing margins on the contracts being performed.

Operating expenses declined to $1.1 million in the second quarter of 2009 from $1.3 million in the comparable quarter of 2008 and were $20 thousand up compared to the first fiscal quarter of 2009. The operating loss declined to $296 thousand in the second quarter of 2009 from $374 thousand in the comparable quarter of 2008 but, due to the reduced gross margin, increased by $39 thousand from $257 thousand in the previous quarter of 2009.

The net loss for the quarter ended April 30, 2009 was $320 thousand or $(0.01) per common share, compared with net loss of $336 thousand or $(0.01) per common share (basic and diluted) for the three months ended April 30, 2008. The $16 thousand year-over-year decrease in quarterly net loss was primarily due to the $188 thousand reduction in operating expenses partially offset by the $111 thousand reduction in gross profit and the $61 thousand reduction in other income (expense).

As at April 30, 2009, Optimal had cash and cash equivalents of $1.3 million with net working capital of $1.1 million, compared to cash and cash equivalents of $1.6 million with net working capital of $1.4 million as at October 31, 2008. The decrease in working capital was primarily due to the decrease in all categories of current assets, except prepaid expenses, and deferred revenue, partially offset by the increase in accounts payable and accrued liabilities, notes payable and the current portion of lease obligations.

Subsequent Event

The Company has reached a settlement with MD Atlantic Technologies, Inc. whereby the remaining principal of the notes payable, US $1.05 million, and the interest accrued thereon, $53 thousand, has been settled by a one-time payment of US $650 thousand made June 19, 2009. As a part of the settlement, the Company has obtained a release of the general security agreement and guarantee provided to ATI at the time Optimal acquired the Huntsville Operations.

Financial Information

Optimal Geomatics quarterly financial statements and MD&A have been filed on SEDAR, www.sedar.com, and will be available on Optimal Geomatics website, www.optimalgeo.com.

About Optimal Geomatics Inc.:

Optimal Geomatics, a geospatial mapping company, provides engineering and geospatial professionals with customized products designed to meet their mapping needs.

Optimal Geomatics specializes in the science and technology of gathering, analyzing, interpreting, distributing, and using geographic information. Optimal applies the disciplines of aerial surveying, mapping, remote sensing, geographic information systems (GIS), and global positioning systems (GPS) to translate remotely-acquired raw imagery into intelligent digitally-mapped data for use according to the application involved, such as land management, environmental information management and engineering design.

Forward-Looking Statements:

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

These forward-looking statements are not guarantees of future performance and actual results could differ materially as a result of changes to Optimal's plans and the impact of factors, risks and uncertainties, known and unknown, to which Optimal's business is subject. The forward-looking statements in this news release speak only as the date hereof. Readers are also referred to risk factors and uncertainties described in filings made by Optimal from time to time with securities regulators.

For more information visit our website www.optimalgeo.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information