Seprotech Systems Incorporated

Seprotech Systems Incorporated

April 29, 2008 17:28 ET

Seprotech Announces Second Quarter Results: 23% Increase in Revenue Over Same Six Month Period Last Year

OTTAWA, ONTARIO--(Marketwire - April 29, 2008) - Seprotech Systems Incorporated (TSX VENTURE:SET)(SET-X; "Seprotech") announces the following unaudited results for the second quarter of fiscal year 2008:

Three Months Ended Six Months Ended
29 February 29 February
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
$000 $000 $000 $000
Revenue $2,349 $2,206 $4,003 $3,243
Net Income (Loss) (159) 140 (313) (35)
Earnings (Loss) per share (0.00) 0.00 (0.01) 0.00

"I am pleased to report that despite the housing and construction downturn in the United States, Seprotech continues to experience growth with revenue up 23% over the same six month period last year," said Martin Hauschild, President & CEO of Seprotech. "Our continued sales to the resource sector, together with the decision to diversify geographically into Latin America places the Company in a position to mitigate the effects of a U.S. downturn. Management continues to strengthen Seprotech's presence in the Latin American market through the marketing and manufacturing partnership with Valsi of Mexico, direct sales into Latin America and with the planned opening of a Seprotech regional sales office in the burgeoning trade hub of Panama City," continued Mr. Hauschild. "Seprotech continues to seek new strategic partners to expand geographic sales into markets where water scarcity restricts growth and economic development."

"Revenue growth was also spurred by the acquisition of the P.J. Hannah Equipment Sales Corporation (PJH) completed in Q2 of this fiscal year. The costs associated with the asset purchase of PJH have been recognized and we expect to see the full benefits of the acquisition materialize in the coming year as PJH is fully integrated," said Mr. Hauschild. "On 11 October 2007 we announced the purchase of PJH for $1,150K. From an accounting standpoint however, the PJH transaction appears on the balance sheet at $831K with the remainder of the transaction cost being expensed through a future earn-out of up to $300K. All of the internal costs related to the transaction have been expensed and the integration of PJH continues as planned. Looking ahead, the introduction of the CrystalBlue" water recycling technology and the purchasing strength of the Canadian dollar should provide growth prospects for Seprotech as the U.S economy turns around in 2009," concluded Mr. Hauschild.

"As much as the high Canadian dollar and the weak U.S markets are challenges, times like these also open significant opportunities to grow through acquisitions and other strategic arrangements", said Mr. Justin Connidis, Seprotech Chairman. "The efforts that Seprotech has undertaken to shift manufacturing to Mexico as well as to diversify sales into Latin America, positions the Company to take advantage of opportunities in North America."

Seprotech is a provider of pre-engineered water and wastewater treatment plants to the land development, resource sector and military market place, including CrystalBlue" membrane-based water recycling systems and the ROTORDISK® wastewater treatment systems.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.

Contact Information

  • Seprotech Systems Incorporated
    Mr. Robert J. Searle, CFO
    Investor Relations
    613-731-0851 (FAX)