Ergoresearch Ltd
TSX VENTURE : ERG

Ergoresearch Ltd

February 28, 2011 09:31 ET

Ergoresearch LTD Announces Second Quarter Results and Reviews its Activities

MONTREAL, QUEBEC--(Marketwire - Feb. 28, 2011) - Ergoresearch LTD (TSX VENTURE:ERG)

  • Sales for the quarter ended December 31, 2010 increased by 10.8% to $1,805,347 compared to $1,629,042 for the same period in 2009.

  • Net income before tax and non-controlling interest increased by 89.0% and amounted to $100,696. 

  • Moving of the operations into Ergoresearch's new complex which becomes the nerve center for the Corporation. 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 on February 15, 2011 -- completed

  • Pursuing 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.

All amounts are in Canadian dollars unless otherwise indicated.

Ergoresearch LTD ("Ergoresearch" or "the Corporation") announces its results for second quarter ended December 31, 2010 and reviews its activities and projects for the same period.

In line with Ergoresearch's new strategic orientation, the Corporation acquired infrastructures commensurate with its aspirations. Its clinical operations, the manufacturing unit and administration of Orthoconcept Laval have joined the production unit as well as the research and development division in the Corporation's new complex in Laval.

A clinic of «Clinique du Pied Équilibre» as well as new research facilities on the loco-motor system will complete the services offered in the new complex.

This new complex will become one of the most important of its kind in Quebec and the nerve center of the Corporation.

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 transfer our existing management systems to the new platform while adding a host of new features and capabilities. The Corporation is currently discussing with a partner to commercialise this application, which is expected to be launched in June 2011.

  • 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, hence at the reason for the existence of the Corporation's, and will be a key part of the new complex.

  • Management also plans to invest, aided by academic partners and government funding, 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 Corporation 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 in coming months.

Sales for the quarter ended December 31, 2010 increased by 10.8% to $1,805,347 compared to $1,629,042 for the same period in 2009. Sales have been steadily increasing year after year. However sales of the Orthoconcept division have declined because "prosthesis" type sales were abandoned.

Net income before tax amounted to $100,696 this year, an increase of 89,0% compared to $53,289 for the same quarter last year. The Corporation has incurred non-recurring moving costs and other costs related to the new Ergoresearch complex.

"Our financial position, our strong business model and current projects make management and employees of the Corporation and its affiliates very enthusiastic. Our entire workforce is focused on delivering the business plan and creating substantial gain for shareholders in the upcoming quarters" declared Mr Sylvain Boucher, President and CEO of Ergoresearch Ltd.

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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