Arius3D Corp.
TSX VENTURE : LZR

Arius3D Corp.

November 29, 2010 14:39 ET

Arius3D Corp. Announces Q2 Results, Board and Management Changes

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - Arius3D Corp. ("Arius3D" or the "Company") (TSX VENTURE:LZR) announces results for the quarter ended September 30, 2010 as well as corporate changes.

Board Addition and New CEO effective November 29, 2010
  • Mr. Perry Monych joins the Board of Directors
  • Mr. Brian Mori resigns all positions with Arius3D
  • Mr. John Wood appointed CEO
Financial Highlights of the quarter ended September 30, 2010
  • Revenue $1,396,572
  • Net Income $435,453
  • Cash generated from operations $467,951
Operational Highlights
  • Improved digitization process, reducing time required to complete 3D images while improving measurement specifications
  • New replica production contract with internationally recognized cultural institution
  • Finalizing agreements with major cultural institution in China
  • Final stage of negotiations for image production and distribution for Canadian and US collections

Board Changes

On November 29, 2010, the Board of Directors appointed Mr. Perry Monych to the board. A shareholder and debenture holder of the Company, Mr. Monych brings a successful business background to Arius3D. Born and raised in British Columbia, he completed an undergraduate degree in Forestry at the University of British Columbia and subsequently graduated from the Harvard Business School with an MBA in Finance and Strategy. Mr. Monych moved progressively through the savings and trust industry and then to the computer sector where he became VP Finance and Planning at The Hamilton Group, a public company listed on the TSX. Mr. Monych became President and CEO of GE Capital IT Solutions Canada, then President and CEO of GE Capital IT Solutions North America. He subsequently became President and CEO of GE Access' worldwide computer distribution operations and served as an officer of GE Capital. He then left GE to be President of US Operations, Tech Data, the 2nd largest computer distributor in the world with US revenues of approximately $9 billion.

"Perry brings a wealth of experience from his executive positions in the high tech sector and will be a great asset for the Company as we seek to implement our aggressive growth strategy" said Chairman David Beutel.

Mr. Brian Mori has resigned from the Board of Directors and as Chief Executive Officer of the Company effective November 29, 2010. The Board of Directors and everyone at Arius3D thanks Mr. Mori for his service.

These corporate changes are subject to regulatory approval.

New Management

Mr. John Wood has served as a Board and Finance Committee member of the Company and brings a clear and deep understanding of Arius3D's business opportunity, value proposition and potential. He has 30 successful years of experience in the financial services industry and has earned a stellar reputation as an innovator and business builder in the Canadian investment community.

Mr. Wood participated in the founding of 20/20 Financial Inc. (20/20), and as CEO he led its rapid growth to over $4 billion in assets under management. He created significant shareholder wealth by developing innovative and successful mutual fund products while gaining the confidence of and successfully working with a very diverse group of directors and shareholders.

John facilitated Trilon Financial's (now Brookfield Asset Management Inc.) exit from 20/20 by taking the company public. Trilon's $800,000 investment was sold for over $20 million for an average annual return of 61.6%. Next John facilitated Connor, Clark & Lunn's (CC&L) exit from 20/20 by selling the company to AGF Management Ltd. CC&L's $25,000 investment was sold for over $30 million for an average annual return of 105.1%.

Mr. Wood then became the CEO of Midland Walwyn Inc.'s wholly owned subsidiary, Financial Concept Group ("FCG") Ltd. As CEO of FCG, John coordinated FCG"s sale to Assante Wealth Management to enable it to execute its IPO in which FCG shareholders realized a average annual return of 90.4% while he was CEO.

Mr. Wood then became Chief Executive Officer of Maxxum Financial (Maxxum - a wholly owned subsidiary of IGM Financial Inc. (IGM)). John grew Maxxum's net sales to 150% of IGM's total net mutual fund sales, which led to IGM's decision to buy Mackenzie Financial for over $4 billion.

Mr. Wood formed Bellwether Investment Management now in partnership with Bob Sewell. Bellwether is a boutique investment manager specializing in providing personalized value added investment management to high net worth individuals.

Outside of business, Mr. Wood is one of the few Olympians to have won medals in two sports; a silver in canoeing at the 1976 Montreal Olympics and a bronze in sailing at the 1979 Pan Am Games.

He is a graduate of McMaster University, a director of a number of private companies and serves on several not for profit Boards. Mr. Wood's vision is to see Arius3D images as ubiquitous as 2D images are today.

Revenue

Revenue for the three months ended September 30, 2010 was $1,396,572 and was a result of funds received pursuant to the image library transaction with A3DL, the primary focus of the current corporate strategy. As outlined in the Company's MD&A in respect of the quarter ended September 30, 2010 to be filed with securities regulatory authorities today, successful implementation of that strategy is expected to result in substantial revenue streams beginning in calendar 2011.

Expenses

Expenses, including direct costs, for the quarter ended September 30, 2010 were $961,119. Salaries and benefits continue to be Arius3D's primary operating expense, representing approximately 52 per cent of total operating expenses with a significant portion of that expense resulting from technical staff; a less significant portion results from administrative staff.

Net Earnings

The Company reported net earnings for the three months ended September 30, 2010 of $435,453 as compared to a net loss for the quarter ended June 30, 2010 of $1,122,511. The net loss for the six months ended September 30, 2010 was $687,058 as compared to the net loss of $244,661 for the six months ended September 30, 2009.

Selected Financial Highlights

    3 Months Ended Sept 30 2010   6 Months Ended Sept 30 2010     6 Months Ended Sept 30 2009  
                       
Total Revenue   $ 1,396,572   $ 1,415,033     $ 2,123,332  
Net income (loss) for the period   $ 435,453     ($687,058 )     ($244,661 )
Basic and diluted Income (loss) per share   $ 0.004     ($0.007 )     ($0.0016 )

Details of financial results are more fully set out in the Company's Management's Discussion and Analysis for the three months ended September 30, 2010 as filed with the applicable securities regulatory authorities and can be found under the Company's profile at www.sedar.com.

About Arius3D Corp.

Classified as an "Information Technology" company, Arius3D is publicly traded and listed on the TSX Venture Exchange trading under the symbol LZR. Arius3D creates imaging solutions that allow organizations to capture and share unique physical objects in digital form. Arius3D offers 3D imaging systems and services to a growing 3D image library. The Arius3D technology supports wide ranging applications in culture and heritage, entertainment, education and product design with a primary focus of generating image license recurring revenues from rich media content. Arius3D has its head office located in Mississauga, Ontario. Visit our website at http://www.arius3d.com to understand more about the Company.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties, including those related to liquidity and financing requirements of the Company, that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Arius3D's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada, which are available for review on www.sedar.com. All amounts are stated in Canadian dollars unless noted otherwise.

Neither the 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 press release.

Contact Information

  • Arius3D Corp.
    David Beutel
    Chairman
    905 270 7999
    dbeutel@belweather.com
    or
    Arius3D Corp.
    John Wood
    CEO
    905 270 7999