Active Control Technology Inc.
TSX VENTURE : ACT

Active Control Technology Inc.

June 11, 2012 11:31 ET

Active Control Releases Fiscal 2012 Third Quarter Results

Fourth Consecutive Profitable Quarter

TORONTO, ONTARIO--(Marketwire - June 11, 2012) - 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, the design and integration of wireless battery equipped mobile platforms and the commercial security and access control industries, today announced its financial results for the third quarter of fiscal 2012 ending April 30, 2012.

The Corporation generated revenues of $1,199,358 during the quarter ended April 30, 2012, as compared to $603,201 in the quarter ended April 30, 2011. The increase is attributable to the addition of the PowerCart product line, combined with increased sales of the ActiveMine™ product.

For the nine month period ended April 30, 2012, the Corporation generated revenues of $3,908,787, as compared to $2,162,552 in the corresponding period ended April 30, 2011. The increase is attributable to the addition of the PowerCart product line, combined with increased sales of the ActiveMine™ product.

The Corporation generated a gross profit of $523,266 (43.6%) during the quarter ended April 30, 2012, as compared to $204,144 (33.8%) in the quarter ended April 30, 2011. Gross profit increased as a result of the addition of the PowerCart product line, combined with continuing operational efficiencies.

For the nine month period ended April 30, 2012, the Corporation generated gross profit of $1,716,078 as compared to $748,206 in the corresponding period ended January 31, 2011. Gross profit per cent improved from 34.6% to 43.9%.

The Corporation has historically reported on EBITDA, since management believes its use provides more insight into the assessment of the Corporation's performance. EBITDA is defined herein as earnings before income tax benefit (expense), interest income (expense), depreciation and amortization and non-cash stock-based compensation expense. EBITDA does not have any standardized meaning prescribed by IFRS and therefore may not conform to the definition used by other companies. EBITDA for the quarter ended April 30, 2012 was $93,919, as compared to negative $219,326 in the corresponding quarter ended April 30, 2011. For the nine month period ended April 30, 2012, the Corporation generated EBITDA of $339,903 as compared to negative $547,416 in the corresponding period ended April 30, 2011.

The Corporation generated a net profit of $19,158 or $0.001 per share during the quarter ended April 30, 2012, as compared to a net loss of $306,499 or $0.026 per share for the quarter ended April 30, 2011. The profit is attributed to an increase in sales of the ActiveMine™ product, combined with increased product margins while obtaining a significant decrease in operating expenses for the quarter.

For the nine month period ended April 30, 2012, the Corporation generated a net profit of $115,225, as compared to a net loss of $1,065,376 for the corresponding period ended April 30, 2011.

Priorities for the business in fiscal 2012 continue to include new PowerCart opportunities, geographic expansion into new mine markets, a continued focus on product development initiatives, with the objective of reducing product and operational costs. Active is pleased with its continuing trend of generating positive cash flow and operating results and expects this trend to continue throughout fiscal 2012.

About Active Control Technology

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

The unaudited consolidated financial statements for the third quarter ended April 30, 2012 and April 30, 2011 and the management's discussion and analysis of the results of operations can be found at www.sedar.com.

Get more out of your mine.™

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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