Ergoresearch Ltd
TSX VENTURE : ERG

Ergoresearch Ltd

November 30, 2010 13:33 ET

Ergoresearch LTD Announces First Quarter Results and Reviews its Activities

MONTREAL, QUEBEC--(Marketwire - Nov. 30, 2010) - Ergoresearch LTD (TSX VENTURE:ERG)

  • Beginning of the construction of Ergoresearch's new complex. This new complex, of close to 20 000 square feet, will be one of the largest in Quebec and will become the nerve center for the company in upcoming years. This major investment for Ergoresearch will allow the Corporation to absorb the growth generated by its ambitious business plan.

    • First stage completed – The head office is now moved into the new complex

    • Opening of the new complex planned for February 15, 2011

  • Continuation of Research & Development activities

    • Development of a unique process for taking footprints that will be combined with the actually existing Expert-fit system.

    • Development and adaptation of web-based and open source ERP (enterprise resource planning) software specifically adapted to the health industry.

    • Development and upgrade of the PODO Barometric Expert-fit sensors.

    • Development of a new research center on the loco motor system.

  • Opening of a new Pied Équilibre clinic in Levis, Quebec last september

  • Redesign of Pied Équilibre clinic trademark 

  • Sales for the quarter ended Sept. 30, 2010 increased by 1.8% to $1,624,576 compared to $1,596,107 in 2009. Net income before tax and non-controlling interest was meanwhile amounted to $79,631.

All amounts are in Canadian dollars unless otherwise indicated.

Ergoresearch LTD ("Ergoresearch" or "the Corporation") announces its results for first quarter ending September 30, 2010 and review its activities and projects for the same period.

Directors of Ergoresearch confirmed new strategic orientation after a first mandate during which Ergoresearch saw its sales grow tenfold and whereas earnings offset entirely accumulated losses. We forsee the coming years with abounding enthusiasm. In order to accomplish its ambitious business plan, the company had to invest in its infrastructure to match its aspirations.

Thus, a first stage was completed last August when the company left the head office that it had occupied since its inception. The production unit and the research and development unit of Ergoresearch have indeed moved to new premises located in Laval.

All of the clinical activities, manufacturing unit and the administration of Orthoconcept Laval will join the complex in March 2011. A branch of "Clinique du Pied Équilibre" clinic as well as new research facilities on the locomotive system will complement the services offered at the new complex.

This new complex, of close to 20 000 square feet, will be one of the largest in Quebec and will become the nerve center for the company. Details regarding this project will be given soon through a formal press release.

Others projects and plans for the current year include:

  • The development and adaptation of web-based and open source ERP (enterprise resource planning) software. This clinic management software will allow us to migrate our existing management systems to the new platform while adding a host of new features and capabilities. The company is currently discussing the marketing of this solution, which is expected to be launched in June 2011, with a business partner.

  • Ergoresearch, Orthoconcept, Protéor and other scientific partners will combine their expertise in order to create a center of excellence that will form the basis of a new Ergoresearch business unit. This new business unit will focus on the loco motor system and will be a key part of the new complex.

  • Management also plans to invest, with the collaboration of academic and aided by government partners, in the development and upgrade of the PODO Barometric Expert-fit sensors. This technology is several years old and in the context of a more intense deployment, this technology could be a hindrance to the planned expansion.

  • To complete the Expert-fit service offering, the company is currently developing, in conjunction with ETS (École de Technologie Supérieure) in Montreal, a unique process for taking footprints. The results of this research project and the technology developed will be announced soon.

Sales for the quarter ended Sept. 30, 2010 increased by 1.8% to $1,624,576 compared to $1,596,107 in 2009. Company sales are increasing year after year. We note however that consolidated sales are growing less strongly. This slowdown was mainly due to lower sales of Orthoconcept. These were indeed affected by the abandonment of "prosthesis" type sales and by the renovation of the building that the company currently occupies. 

Net income before tax amounted to $79,631 this year, a decrease of 50.6% compared to $161,231 for the same quarter last year. The company has incurred non-recurring costs during the quarter such as moving costs, other costs related to the new Ergoresearch complex and cost associated with the rebranding of the "Clinique du Pied Équilibre". "Clinique du Pied Equilibre" launched its new logo last September, a new website and a new television advertising campaign entitled "At the heart of motion 2010".

"Our financial position, our strong business model and current projects have everyone up most enthusiastic. Our entire workforce is focused on delivering the business plan and creating substantial gain for shareholders it's the upcoming quarters." Mr Sylvain Boucher, President and CEO of Ergoresearch ltd said.

AVAILABLE RESULTS FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2010

Ergoresearch's unaudited interim financial statements and the management report for the three month period ended September 30, 2010, compared to the unaudited interim financial statements for the three month period ended September 30, 2009 are available of SEDAR's web site. www.sedar.com

Forward-looking statements

Certain statements in this Press Release contain forward-looking statements and information that may entail certain risks related to uncertainties. Such statements are based on management's expectations and no assurance can be given that potential future results or circumstances described in the forward looking statements will be achieved or will occur. Such risks factors include, but are not limited to, those related to the Corporation's ability to finance its activities, competition, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, fluctuations in cash flow, expectations regarding market demand for particular products and the dependence on new product development.

The reader should not give great importance to forward-looking statements as (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Ergoresearch Ltd (www.ergorecherche.com) through its subsidiaries (www.cliniquedupiedequilibre.com) and Orthoconcept (2008) Inc. (www.orthoconcept.com) is a leading general and foot orthotics manufacturer as well as being on the leading edge of durable medical equipment development in the orthopaedic industry (www.ErgoIntel.com). The Corporation pursues its goal to become an international leader in technologies and solutions aimed at improving health and well-being.

The TSX Venture exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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