ACTIVE CONTROL TECHNOLOGY INC.
TSX VENTURE : ACT

ACTIVE CONTROL TECHNOLOGY INC.

March 24, 2011 16:04 ET

Active Control Releases Fiscal 2011 Second Quarter Results

Gross Profit Continues to Improve, Rising to 38.5%

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - Active Control Technology Inc. (TSX VENTURE:ACT), a leading provider in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries, today announced its financial results for the second quarter of fiscal 2011 ending January 31, 2011.

The Corporation generated revenues of $783,024 during the quarter ended January 31, 2011, as compared to $1,620,010 in the quarter ended January 31, 2010. Revenues dropped as a consequence of no new ActiveMine™ installations begun during the quarter, whereas there were 3 new installations begun in the corresponding period ended January 31, 2010.

For the six month period ended January 31, 2011, the Corporation generated revenues of $1,559,352, as compared to $2,963,419 in the corresponding period ended January 31, 2010. Revenues dropped as a consequence of no new ActiveMine™ installations begun during the period, whereas there were 6 new installations begun in the corresponding period ended January 31, 2010.

The Corporation generated gross profit of $301,285 during the quarter ended January 31, 2011, as compared to a gross profit of $279,980 in the quarter ended January 31, 2010. Gross profit per cent improved from 17.3% to 38.5%, primarily due to the implementation of product cost reduction initiatives.

For the six month period ended January 31, 2011, the Corporation generated gross profit of $544,063 as compared to $571,370 in the corresponding period ended January 31, 2010. Gross profit per cent improved from 19.3% to 34.5%. 

The Corporation incurred a net loss of $293,392 or $(0.00) per share during the quarter ended January 31, 2011, as compared to a net loss of $913,360 or ($0.00) per share for the quarter ended January 31, 2010. This improvement was as a result of increased gross profit combined with a reduction in total expenses.

For the six month period ended January 31, 2011, the Corporation incurred a net loss of $758,877, as compared to a net loss of $1,962,720 for the corresponding period ended January 31, 2010.

Free cash flow usage during the quarter ended January 31, 2011, defined as cash used in operating activities plus investing activities, was $252,120, as compared to $1,717,713 during the quarter ended January 31, 2010. For the first six months, free cash flow usage was $479,279, as compared to $2,540,669 during the corresponding period ended January 31, 2010.

About Active Control Technology

Active Control Technology is involved in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries. The Corporation has two product lines: ActiveMine™, a fully integrated wireless and/or fiber communications and locating technology for underground coal mines, and ActiveSecure™, a family of wireless products for the access control industry. Located in Burlington, Ontario, Canada, Active Control Technology trades publicly on the TSX Venture Exchange under the symbol ACT. For more information, visit www.activecontrol.com.

The unaudited financial statements for the second quarter ended January 31, 2011 and January 31, 2010, and management's discussion and analysis of the results of operations can be found at www.sedar.com

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Cautionary Note Regarding Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and, as such, are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the Company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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