Open EC Technologies, Inc.
TSX VENTURE : OCE

Open EC Technologies, Inc.

October 01, 2010 17:50 ET

Open EC Technologies, Inc. Reports Fiscal 2010 Results

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2010) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) reported today the financial and operating results for the year ended June 30, 2010.

The revenues for the year were $737,183 with an EBITDA from continuing operations of ($778,653) as compared with revenues of $979,005 and an EBITDA from continuing operations of ($93,923) last year. 

Martyn Armstrong, CEO, states "The financial results for the year reflect the costs of reorganizing and positioning our business to focus on the US Healthcare IT market. Our investment and focus in marketing the Company's TradeLink Software to US Healthcare Companies is resulting in new contracts that will strengthen our market position and contribute additional revenue streams to the company. Going forward, we expect our fiscal 2011 financial results will reflect a noticeable improvement due to the Company's penetration of these new Health Care markets."

The reported net loss for the year ended June 30, 2010 was $873,957, compared to $1,954,958 last year (which included a $1,768,270 loss from discontinued operations). The loss from continuing operations for the year ended June 30, 2010 was $873,957 compared with a loss of $186,688 last year. The increase in loss from continuing operations was primarily due to the decrease in revenue from software development services and an increase in stock-based compensation.

Martyn Armstrong, CEO continues, "Entering into fiscal 2011 the Company is in a good position with available working capital, increased customer contracts, improved sales pipeline, and along with developing strategic acquisitions/partnerships, we expect improved Company's financial results in the first quarter and going forward."

The company's available cash and short term investments at June 30, 2010 was $465,742, a decrease from the June 30, 2009 balance of $743,450. The company's accounts receivable decreased to $88,362 as at June 30, 2010 from $92,857 at June 30, 2009. The company's total liabilities decreased to $264,250 as at June 30, 2010 from $392,721 at June 30, 2009. Total working capital (total current assets less total current liabilities) as at June 30, 2010 decreased to $306,019 from $601,855 as at June 30, 2009.

The comparative financial statements for the year ended June 30, 2010, along with other information, may be obtained through the Company's website at www.openec.com or on SEDAR at www.sedar.com.

About Open EC Technologies, Inc.

Open EC is a TSX Venture Exchange listed company. Its subsidiary, SoftCare EC Solutions Inc. is an e-business software, services and solution provider. SoftCare's OpenEC® e-business software includes solutions for Electronic Data Interchange (EDI), Healthcare Interoperability and Business Process Management. The Company sells the OpenEC® products and solutions to the healthcare, financial services and retail supply chain in North America. The company has a growing focus on turnkey solutions for US Healthcare Information Technology Reforms funded by the US Federal Government ARRA programs for Healthcare IT Interoperable mandates. Additional product and solution information is available on the web at www.softcare.com and additional public company information is available on the web at www.openec.com. The Company's common shares trade on the TSX Venture Exchange under the symbol: OCE.

ON BEHALF OF THE BOARD

Martyn A. Armstrong, President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Mr. Martyn A. Armstrong, President & CEO of the Company. 

This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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