SENSIO Technologies Inc.
TSX VENTURE : SIO

SENSIO Technologies Inc.

October 21, 2008 15:00 ET

In its First Quarter of Fiscal 2009, SENSIO Increases Revenues and Reduces its Quarterly Loss

MONTREAL, QUEBEC--(Marketwire - Oct. 21, 2008) - SENSIO Technologies inc. ("SENSIO") (TSX VENTURE:SIO), inventor of the SENSIO®3D technology, announces its financial results for the first quarter of the 2009 fiscal year, ended August 31, 2008. During this period, SENSIO made considerable headway with regards to the marketing of its "Live 3D" product line following the signature of a licensing agreement with International Datacasting Corporation ("IDC") (TSX: IDC) and the deployment of its Live 3D technology in many digital movie theaters across the United States. "The interest shown by many key players of the digital cinema industry, such as during live 3D broadcasting of the Rolland-Garros tennis tournament, is undeniable," explains Nicholas Routhier, SENSIO President and CEO, "and proves that this isn't just a series of isolated initiatives, but a new trend taking shape. In order to meet current and future market needs, we've forged strategic partnerships with organizations that will enable us to speed up the international deployment of our technology and achieve our business objectives. Also, as was expected, Live 3D constitutes an important source of potential income in the short term."

On the consumer market, standardization efforts were sustained during the first quarter. "We had to adjust our consumer market strategy to adapt to new industry developments," confirms Mr. Routhier. "Studios have agreed that a standard needs to be established and we've decided to adapt our strategy and aim for the standardization of our format. Our market research leads us to believe that movie studios are the key stakeholders in the eventual creation of a 3D standard for home-theater systems."

Highlights

- First license sales for initial deployment of 3D systems in 50 movie theaters across the United States following an official agreement with International Datacasting Corporation for the integration of SENSIO technology in products designed for digital cinema

- Participation in various standardization organizations, namely the 3D@Home Consortium and the Society of Motion Picture and Television Engineers (SMPTE), as well as a meeting with the DVD Forum

- Gross margin increased by 38.9 % compared to the first quarter of the last fiscal year

- SENSIO's quarterly loss dropped by 12.67 % compared to the first quarter of the last fiscal year

Initial Deployment of Live 3D Technology

During the first quarter of the 2009 fiscal year, Live 3D technology really took off as our marketing efforts came through. The sale of 50 Live 3D technology licenses to digital movie theaters netted $117,279 for the Company. Potential Live 3D revenues stand to be substantial, as more and more movie theaters are opting for digital cinema. Currently, there are a total of about 1,800 digital movie theaters, a figure which could swell to 5,000 by late 2009. "We are extremely pleased with this initial deployment and look to the future with great optimism," adds Mr. Routhier. "Furthermore, through our partnership with IDC, we're getting closer to achieving the license distribution business model we wish to establish."

Standardization and Demonstration Efforts

During the first quarter of the current fiscal year, SENSIO pursued its standardization efforts, performed several demonstrations to various organizations, and participated in the first meeting of the 3D@Home Consortium, of which it is a founding member. Furthermore, after submitting a document to the DVD Forum to promote the integration of SENSIO(3D technology in the DVD format, the Company met with members of this organization last June to answer questions on SENSIO(3D technology. Taking advantage of its presence in Japan, SENSIO representatives met with several manufacturers to discuss the eventual integration of its technology in consumer products. In addition, SENSIO was asked to hold a conference and demonstrate its technology for attending members of the SMPTE, which has already created a working group for the standardization of 3D distribution formats. Finally, SENSIO was asked to speak at a conference held in Taiwan by the Industrial Technology Research Institute.

Summary of Financial Results

For the first quarter ended August 31, 2008, SENSIO's revenues totaled $131,477, compared to $40,294 for the same period last year, representing a 226.3 % increase. This rise stems from the first license sales of SENSIO's Live 3D technology. Furthermore, the Company's gross profits increased by 38.9 %, compared to the first quarter of the last fiscal year. This considerable progress results from the sale of 50 Live 3D technology licenses in the digital cinema market.

SENSIO's net loss for the quarter ended August 31, 2008 totaled $359,549 ($0.0106 per share), compared to $411,734 ($0.0148 per share) as at August 31, 2007, representing a 12.67 % decrease.

Variation of Operating Expenses

Selling expenses totaled $189,172, compared to $130,723 for the same period last fiscal year, representing a 44.7 % increase. This rise stems from the hiring of an account manager exclusively dedicated to the consumer market, the addition of external business development specialists, and increased travel to the United States and Asia.

For the first quarter of the current fiscal year, the Company's research and development expenses totaled $89,312, compared to $65,839 for the same period last fiscal year. This increase is mainly due to additional human resources that contributed to the increase of the department's payroll and sub-contractor fees.

The Company's administrative expenses dropped to $165,857, compared to $190,950 for the first quarter last fiscal year. This variation is mainly due to a decrease of the legal fees incurred during the first quarter of the last fiscal year.



Main financial data
Quarter ended
August 31st
Unaudited
2008 2007
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Sales 131,477 40,294
Gross profit 118,664 20,727
Net loss and comprehensive income (359 549) (411 734)
Basic and diluted net loss per share (0,0106) (0,0148)
Weighted average number of shares outstandings 33,915,281 27,741,723
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All figures are in Canadian dollars and were prepared in accordance with Canadian Generally Accepted Accounting Principles.

About SENSIO

Founded in 1999, SENSIO, headquartered in Montreal, Canada, develops and markets forward-looking stereoscopic technologies designed to offer the most advanced and immersive cinematographic experience available. Its flagship technology, SENSIO®3D, allows the high-quality distribution of 3D content through conventional 2D channels and playback on any display device, including plasma TVs, HDTV and glass-free 3D displays. Working with major Hollywood studios and large format 3D film producers, SENSIO has built up one of the world's largest libraries of 3D movies for the home entertainment market.

SENSIO® is a trademark of SENSIO Technologies inc.

This news release contains forward-looking statements that reflect the Company's expectations with regard to future events. Actual events could differ significantly from those anticipated in this document.

The TSX Venture Exchange Inc. has not approved and accepts no responsibility for the authenticity or accuracy of the information contained in this news release.

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