Eurocontrol Technics Inc.
TSX VENTURE : EUO

Eurocontrol Technics Inc.

March 02, 2009 09:42 ET

Eurocontrol Reports Third Quarter Results for Fiscal Year 2009

TORONTO, CANADA--(Marketwire - March 2, 2009) - Eurocontrol Technics Inc. (TSX VENTURE:EUO), a Canadian public company specializing in the acquisition, development and commercialization of innovative authentication, verification and energy security technologies, is pleased to report third quarter results for the Company's third quarter 2009 ending December 31, 2008.

OCTOBER 1, 2008 TO DECEMBER 31, 2008 HIGHLIGHTS:

Continued quarterly revenue growth of 10%

Shareholder loan repayment: $133,027

Cash position of $ 562,853

"Our third quarter results were as we anticipated. The gross margin decreased somewhat based on a greater mix of equipment versus marker sales in Q3 as we completed the installation in Romania for Rompetrol Group" commented Bruce Rowlands, President & CEO Eurocontrol Technics Inc. "We continue to find growing demand in the marketplace for our Petromark technology as we reach out to new markets in Africa, South America and Asia."

FINANCIAL RESULTS

The Company recorded a net loss of $279,328 for the third quarter ended December 31, 2008 compared to a net loss of $319,884 for the comparable period ended December 31, 2007. The Company achieved revenues of $1,158,818 from sales in Uganda and Romania compared to $340,178 of last year. The Company anticipates achieving continued revenue growth as the Company implements its Petromark™ technology.

Expenses increased by $284,981 over the period from $567,915 for the three months ended December 31, 2007 to $852,896 at December 31, 2008. This increase included two non cash charges to operations, $9,420 (2007: $132,480) related to stock based compensation for the fair value of options that were granted and/or vested during the period, and $196,107 (2007:$nil) related to the amortization of technology rights. The Company started to generate revenue during the year ended March 31, 2008. The amortization of the technology right is being charged to operations, and on removing these non-cash expenses, administrative and general expenses increased by $211,934 from $435,435 for the three months ended December 31, 2007 to $647,369 for the same period ended December 31, 2008. The increase is primarily attributable to an increase of $260,422 in sales and marketing expenses and $41,895 in marketing and shareholder communication. The increase is a result of increased sales and marketing activities in order for the Company to achieve a positive revenue growth pattern.

About Eurocontrol Technics Inc.

Eurocontrol Technics Inc. through its wholly owned subsidiary Global Fluids International S.A. ("GFI") is one of the world's pioneers in developing and implementing innovative molecular marking systems for the oil industry. Through its proprietary Petromark™ integral system, GFI has developed a 4-part solution consisting of a molecular marker, injection, monitoring and control components. Such oil industry cost realities along with GFI's 5-year R&D efforts to create its industry-leading marking solutions, along with access to capital provided by Eurocontrol Technics Inc. allows management to pursue numerous anticipated oil marking opportunities in fiscal 2008 and in years to come.

Cautionary Note Regarding Forward-looking Information

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the future operating and financial performance of the Company, the proposed use of proceeds and the terms of the financing. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially, include, among others, regulatory risks, market risks, competition risks, execution risks, country risks, and lack of a history of profitability. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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.

Contact Information

  • Eurocontrol Technics Inc.
    W. Bruce Rowlands
    President and Chief Executive Officer
    (416) 861-5883
    Email: browlands@eurocontrol.ca