SOURCE: Intrinsyc Technologies Corporation

Intrinsyc Technologies Corporation

January 14, 2016 11:23 ET

Intrinsyc Announces Preliminary Unaudited Results With Improvement in Revenue and Adjusted EBITDA for FY15 Q4

FY15 Q4 Revenue Expected to Be in the US$3.9 Million to US$4.1 Million Range With Adjusted EBITDA(1) Between US$850,000 and US$950,000

VANCOUVER, BC--(Marketwired - January 14, 2016) - Intrinsyc Technologies Corporation (TSX: ITC) (OTC: ISYRF) ("Intrinsyc" or the "Company"), a leading provider of solutions for the development of intelligent connected devices, today announced preliminary, unaudited financial results for the fourth quarter and fiscal year ended December 31, 2015. Final results are subject to adjustments upon further review by the Company and its independent auditors in connection with the Company's fiscal 2015 audit. Revenue is expected to be in the range of US$3.9 million to US$4.1 million in the fourth quarter of fiscal 2015, up from US$3.4 million in the prior quarter and US$2.6 million in the fourth quarter of fiscal 2014. Adjusted EBITDA for the fourth quarter is expected to be between US$850,000 and US$950,000, up from US$324,000 in the prior quarter and US$65,000 in the fourth quarter of fiscal 2014. Revenue for fiscal 2015 is expected to be in the US$12.4 million to US$12.6 million range, an increase from US$10.1 million for fiscal 2014. Adjusted EBITDA for fiscal 2015 is expected to be between US$1.6 million and US$1.7 million, an increase from US$400,000 in fiscal 2014. Final financial results for the fourth quarter and fiscal 2015 year ended December 31, 2015 are planned for release on March 23, 2016.

"Given the significantly better than anticipated financial results in relation to prior quarters and the period of time until our scheduled earnings release in March, we believe it is appropriate that we provide this preliminary report," stated Tracy Rees, President and Chief Executive Officer, Intrinsyc Technologies Corporation. "We achieved outstanding margin contribution from our engineering services due to high utilization and productivity, as well as lower labor cost due to a decline in the value of the Canadian dollar against the US dollar. Increased hardware sales from our expanding client base also contributed to our strong revenue and EBITDA results. Although we expect continued positive momentum from our business initiatives, there could be future variances in our quarterly revenue due to the uneven size and timing of hardware orders. There may also be an increase in expenses due to our plan to increase spending related to investments in product development and marketing in subsequent quarters."

Financial information is reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS").

Non-IFRS Measures

The following and preceding discussion of financial results includes reference to Adjusted EBITDA which is a non-IFRS financial measure. Adjusted EBITDA is defined as operating income (loss) inclusive of revenue reclassified as interest income (as per IFRS) less other operating expenses. The measure is provided as a proxy for the cash earnings from the operations of the business as operating loss for the Company includes non-cash amortization and depreciation expense and share-based compensation which are classified as other operating expenses.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the need to develop, integrate and deploy software solutions to meet the Company's customer's requirements; the possibility of development or deployment difficulties or delays; a customer's decision to cancel or fail to proceed with a commitment to purchase units of the Company's products contained in an executed purchase order; the dependence on the Company's customer's satisfaction; the timing of entering into significant contracts; customers' continued commitment to the deployment of the Company's solutions; reliance on products manufactured by other companies for resale or distribution and reliance on third-party suppliers; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to international expansion; concentration of sales; international operations and sales; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and other factors described in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2014. Preliminary, unaudited financial results for the quarter and year ended December 31, 2015 are subject to adjustment as the Company completes its yearend audit and other processes and are not necessarily indicative of operating results for any future periods. This list is not exhaustive of the factors that may affect the Company's forward-looking information.

These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Intrinsyc Technologies Corporation

Intrinsyc Technologies is a product development company that provides comprehensive and tailored solutions that enable the development and production of next-generation intelligent connected devices. Solutions span the development life cycle from concept to production and help device makers and technology suppliers create compelling differentiated products with faster time-to-market. Intrinsyc is publicly traded (TSX: ITC) (OTC: ISYRF) and is headquartered in Vancouver, BC, Canada.

1 Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable IFRS measure. Adjusted EBITDA referenced here relates to operating income (loss) inclusive of revenue reclassified as interest income (as per IFRS) less other operating expenses. 

Contact Information

  • For more information, please contact:
    George Reznik
    Chief Financial Officer
    Intrinsyc Technologies Corporation
    Phone: +1-604-678-3734