Optimal Geomatics Inc.
TSX VENTURE : OPG

Optimal Geomatics Inc.

September 28, 2009 19:00 ET

Optimal Geomatics Reports Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2009) -

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Optimal Geomatics Inc. (TSX VENTURE:OPG) ("Optimal") announces its financial results for the third fiscal quarter ending July 31, 2009. Except as otherwise noted, financial information is reported in Canadian dollars.

Financial Results

Revenue for the third fiscal quarter ended July 31, 2009 was $2.9 million, a 3% decrease compared to revenue of $3.0 million for the comparable period in 2008, and a decrease of 34% when compared to the prior quarter. Gross margin for the three month period ending July 31, 2009 was 14%, a decrease as compared to the gross margin of 19% 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 $830 thousand in the third quarter of 2009 from $1.3 million in the comparable quarter of 2008 and were down $239 thousand compared to the second fiscal quarter of 2009. The operating loss declined to $413 thousand in the third quarter of 2009 from $756 thousand in the comparable quarter of 2008 but, due to the reduced revenues and gross margin, increased by $117 thousand from $296 thousand in the previous quarter of 2009.

The net income for the quarter ended July 31, 2009 was $89 thousand or $(0.00) per common share, compared with net loss of $766 thousand or $(0.01) per common share (basic and diluted) for the three months ended July 31, 2008. The $855 thousand year-over-year increase in quarterly net income was primarily due to the $507 thousand gain on the pay-out of the notes payable and the above-mentioned $343 thousand improvement in operating income.

As at July 31, 2009, Optimal had cash and cash equivalents of $912 thousand with net working capital of $1.2 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 partially offset by the decrease in current liabilities.

Subsequent Events

The Company announced the conclusion of an Arrangement Agreement with Aeroquest International Limited ("Aeroquest"), subject to shareholder and court approval, on July 29, 2009. The shareholders of the Company approved the Plan of Arrangement at a Special Meeting held September 17 and the Final Order of the court was received September 22, 2009. Management expects the transaction to close on or about September 30, 2009.

Optimal returned the two Cessna Caravan aircraft being sub-leased from MD Atlantic Technologies, Inc., on September 11, 2009, as provided for by the sub-lease agreement entered into when Optimal acquired the Huntsville Operation in 2005. Optimal will utilize third parties to perform data acquisition services.

Financial Information

Optimal Geomatics quarterly financial statements and MD&A have been filed on SEDAR, www.sedar.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.

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

Contact Information