SOURCE: Open EC Technologies, Inc.

November 28, 2010 22:39 ET

Open EC Technologies, Inc. Reports Q1/2011 Results

NORTH VANCOUVER, BC--(Marketwire - November 28, 2010) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX-V: OCE) reported today the financial and operating results for the quarter ended September 30, 2010.

The revenues for the quarter were $203,085 with an EBITDA of ($70,161) as compared with revenues of $293,257 and an EBITDA of $7,613 last year.

The company's available cash, cash equivalents and short term investments at September 30, 2010 was $343,055, decreased from the June 30, 2010 balance of $465,742 and the company's liabilities increased to $307,121 at September 30, 2010 from $264,250 at June 30, 2010. The company's accounts receivable increased to $190,015 at September 30, 2010 from $88,362 at June 30, 2010. In addition there is $72,620 of contracts invoiced but not yet earned and thus not yet included in accounts receivable.

Martyn Armstrong CEO states: "The Company is continuing its transition into the US Healthcare IT market with increased sales activities and recently announced agreements including NetCare Administrators (Oct 28, 2010) a 600 Doctor Preferred Provider Association and Londale Enterprise (Nov 16, 2010) a HealthCare Supplies Manufacturer. With these and other pending contracts the Company should continue to see improving sales and revenue development. The Company has substantially improved its 2011 Q1 revenue compared to the 2010 Q4 and 2010 Q3 results, with increased Software Licensing and related professional services"

The reported net loss for the quarter ended September 30, 2010 was $92,432, compared to $15,005 last year. The increase in loss was due to the decrease in revenue from software development services.

Mr. Armstrong continues: "The Company's US HealthCare initiatives have progressed with an announcement (Oct. 13, 2010) of a letter of intent to acquire i-Plexus Solutions in San Antonio Texas. i-Plexus will add a substantial recurring revenue stream to the Open EC business by adding over 5,400 Physicians under contract to provide recurring HealthCare claims processing with over 1,500 Insurance companies in the United States. Open EC expects to close the transaction and start consolidated financial reporting in January 2011."

The comparative financial statements for the quarter ended September 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 atwww.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"

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

* * * *

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

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(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Open EC Technologies, Inc. via Thomson Reuters ONE

Contact Information

  • CONTACT:

    Martyn A. Armstrong
    President and CEO

    Telephone: (604) 983-8083
    Facsimile: (604) 983-8056
    e-mail: Email Contact
    web site: www.openec.com