SENSIO Technologies Inc.

SENSIO Technologies Inc.

April 25, 2008 16:17 ET

SENSIO Unveils its Financial Results for the Third Quarter

MONTREAL, QUEBEC--(Marketwire - April 25, 2008) - SENSIO Technologies Inc. ("SENSIO") (TSX VENTURE:SIO), inventor of the SENSIO®3D technology, announces its financial results for the quarter ended February 29, 2008. "During the last quarter, namely at the Consumer Electronic Show (CES), we saw that the industry has picked up the pace significantly and that 3D is imposing itself. Consequently, we had to multiply our marketing efforts to meet the growing needs of the market. We nonetheless slightly increased our revenues through products directly related to one of our two business segments; Live 3D", comments Nicholas Routhier, President and CEO.


- First sale of encoders and decoders for the Live 3D! events market

- Public launch of the SpectronIQ television integrating the SENSIO®3D technology

- SENSIO presents the first full HD 3D consumer solution at the CES

- Reduction of SENSIO's quarterly loss

Summary of Financial Results

SENSIO's sales totaled $30,474 versus $22,416 for the previous quarter. This slight increase can be attributed mostly to the sale of the first prototypes of encoder/decoder intended for the professional market. These devices allow the live broadcast of 3D events in digital theaters. In addition, the increase can be explained by the sale of other development kits to manufacturers looking to test the technology and eventually integrate it into their consumer products. We should also mention that the Company's gross margin increased for the first nine months of the fiscal year due to the access fees paid for the SENSIO technology by Kerner Optical R&D.

SENSIO's net loss for the quarter ended February 29, 2008 amounted to $618,384 ($0.0182 per share) compared to $785,125 ($0.0322 per share) as at February 28, 2007. This decrease can be explained by the reduction of stock-based compensation, of selling expenses, which declined from $291,078 for the same quarter last fiscal year to $185,551 for the quarter ended February 29, 2008, and to the reduction of research and development expenses ($227,311 in 2007 versus $90,967 in 2008).

First Revenues Generated by Live 3D!

Revenues for the last quarter were generated mostly by the sale of equipment for Live 3D. In fact, SENSIO sold its first Live 3D encoders and decoders intended for the professional market. This first order followed the agreement with International Datacasting (IDC) and AccessIT, announced in the fall of 2007, to allow the direct broadcasting of 2D and 3D events in digital theaters.

The outcome of the agreement is important to SENSIO as it could generate significant revenues. In fact, the Company would recover a sum, through the sale of these devices, for every theater equipped with its technology. "Although revenues remain marginal at this stage, we are confident that a North American rollout in 3D theaters will occur as early as 2008 and this could mean potential revenues for the Company", declared Mr. Routhier.

In addition, this agreement will give SENSIO direct visibility with moviegoers, as its logo should appear in all theaters during 3D events.

Variation in Operating Expenses

During the third quarter, there was an increase in operating expenses, which rose from $196,073 for the same quarter last year to $245,361 for the quarter ended February 29, 2008. This increase can be largely explained by the professional fees paid as part of strategic consultation mandates ($29,500) and by the legal fees paid for contract revision ($15,000).

Research and development expenses dropped from $227,311 in 2007 to $90,967 in 2008. This decrease is a result of a one-time expense during the same quarter last year. Selling expenses also dropped, from $291,078 in 2007 to $185,551 in 2008. This can be explained mostly by the fact that the Company refocused its operations.

Main financial data

Three months period Nine months period
Period ended: Unaudited Unaudited
February 29th 2008 2007 2008 2007

Sales 30,474 22,416 179,469 220,337
Gross profit 13,794 10,932 134,024 111,422
Net loss (618,384) (785,125) (1,471,425) (1,692,205)
Net loss per share 0,0182 0,0322 0,0463 0,0693

Public Launch of the SpectronIQ Television

A premiere at the CES was the demonstration of the brand new LCD HD 3D television from SpectronIQ, integrating the SENSIO(3D technology. This television is the first fully integrated solution that will be offered to consumers and it could represent recurring revenues for the Company as early as 2008, given that the television will be available on the shelves this year. In fact, besides the payment of a lump sum for access to the technology, the agreement states that SENSIO will obtain royalties on each unit sold. "We are currently the only 3D technology to have been integrated into a product intended for the consumer market, which gives us a head start versus the industry and allows us to position ourselves as a leader", explains the President and CEO.

SENSIO Pursues its Marketing Efforts with Manufacturers

Last January, SENSIO presented for the very first time at the CES, the very first HD 3D consumer solution. The demonstration was made uniquely with a Blu-Ray player and a Mitsubishi 3D television, while 3D demonstrations usually require special equipment or devices linked to a computer. "Through this demonstration, we were able to show the industry the quality and simplicity of the SENSIO(3D technology, but mostly, we proved that with our technology, the chain is truly complete for consumers to gain access to 3D at home", concludes Mr. Routhier.


Founded in 1999, SENSIO Technologies Inc. (TSX VENTURE:SIO), headquartered in Montreal, Canada, develops and markets forward-looking stereoscopic technologies designed to offer the most advanced and immersive cinematographic experience available. Its flagship technology, SENSIO®3D, allows the high-quality distribution of 3D content through conventional 2D channels and playback on any display device, including plasma TVs, HDTV and glass-free 3D displays. Working with major Hollywood studios and large format 3D film producers, SENSIO has built up one of the world's largest libraries of 3D movies for the home entertainment market.

SENSIO® is a trademark of SENSIO Technologies Inc.

This news release contains forward-looking statements that reflect the Company's expectations with regard to future events. Actual events could differ significantly from those anticipated in this document.

The TSX Venture Exchange Inc. has not approved and accepts no responsibility for the authenticity or accuracy of the information contained in this news release.

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