Optimal Geomatics Inc.
TSX VENTURE : OPG

Optimal Geomatics Inc.

March 24, 2009 19:05 ET

Optimal Geomatics Reports First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2009) - Optimal Geomatics Inc. (TSX VENTURE:OPG) ("Optimal") announces its financial results for the first fiscal quarter ending January 31, 2009. Except as otherwise noted, financial information is reported in Canadian dollars.

Financial Results

Revenue for the first quarter ended January 31, 2009 was $3.4 million, a 7% decrease compared to revenue of $3.7 million for the comparable period in 2008, and a decrease of 15% when compared to the prior quarter. Gross margin for the three month period ending January 31, 2009 was 23%, an increase as compared to the gross margin of 22% for the comparable three month period in 2008. The operating loss was $257 thousand for the first quarter of 2009 as compared to an operating loss of $270 thousand for the comparable quarter of 2008. The net loss for the quarter ended January 31, 2009 was $290 thousand or $(0.00) per common share, compared with net loss of $45 thousand or $(0.00) per common share (basic and diluted) for the three months ended January 31, 2008.

Gross margin for the three month period ending January 31, 2009 was 23%, a modest increase from 22%, the gross margin for the comparable three month period in 2008. The increase in gross margin was due to several factors including the mix of contracts being performed and a decrease in indirect production costs.

The year-over-year increase in quarterly net loss was primarily due to the $257 thousand quarter-over-comparative-quarter reduction in the foreign exchange gain.

As at January 31, 2009, Optimal had cash and cash equivalents of $1.7 million with net working capital of $1.3 million, compared to cash and cash equivalents of $1.6 million with net working capital of $1.4 million as at October 31, 2008. The decrease in working capital was primarily due to the increase in all categories of current assets and deferred revenue, partially offset by the increase in accounts payable and accrued liabilities, notes payable and the current portion of lease obligations.

Subsequent Event

Subsequent to the quarter-end, the noteholder agreed to the deferral to April 30, 2009 of the US $500 thousand, plus interest, payment previously due February 28, 2009.

About Optimal Geomatics Inc.:

Optimal Geomatics, a geospatial mapping company, provides engineering and geospatial professionals with customized products designed to meet their mapping needs.

Optimal Geomatics specializes in the science and technology of gathering, analyzing, interpreting, distributing, and using geographic information. Optimal applies the disciplines of aerial surveying, mapping, remote sensing, geographic information systems (GIS), and global positioning systems (GPS) to translate remotely-acquired raw imagery into intelligent digitally-mapped data for use according to the application involved, such as land management, environmental information management and engineering design.



Summary of Financial Information

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January 31, October 31,
Consolidated Balance Sheets 2009 2008
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Assets
Cash $ 1,671,530 $ 1,641,512
Accounts receivable 2,330,881 3,559,352
Inventory 27,961 9,457
Work in progress 29,188 50,336
Prepaid expense 295,945 256,560
Property & equipment 1,597,869 1,751,085

Other long-term assets 7,009 6,883
Intangible assets 82,447 113,230
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Total Assets $ 6,042,830 $ 7,388,415
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Liabilities & Shareholders Equity
Accounts payable and accrued liabilities $ 1,154,152 $ 1,870,793
Deferred revenue 386,237 821,649
Notes payable 1,282,822 1,259,811
Obligation under capital leases 410,239 456,384
Share capital & subscriptions 23,231,543 23,231,543
Contributed surplus 772,589 772,589
Accumulated other comprehensive income (303,988) (423,999)
Deficit (20,890,764) (20,600,355)
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Total Liabilities & Shareholders Equity $ 6,042,830 $ 7,388,415
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3 months ending January 31
Consolidated Statements of Operations 2009 2008
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Revenues $ 3,392,234 $ 3,650,027
Cost of sales 2,599,354 2,852,597
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Gross profit 792,880 797,430
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Expenses
Administration 530,575 451,196
Marketing & sales 283,538 298,545
Research & development 17,356 64,723
Amortization 217,933 253,081
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1,049,402 1,067,545
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Operating loss 256,522 270,115

Other income (expense)
Foreign exchange gain (loss) (4,960) 251,981
Interest expense (34,002) (47,453)
Interest income 2,216 18,894
Gain (loss) on equipment disposal 100 (915)
Other income 2,759 2,262
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(33,887) 224,769
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Net Loss for the Period $ 290,409 $ 45,346
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Net loss per share:
Basic and diluted $ 0.00 $ 0.00
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Weighted Average Common Shares Outstanding
Basic and diluted 61,387,398 61,387,398
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Forward-Looking Statements:

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

These forward-looking statements are not guarantees of future performance and actual results could differ materially as a result of changes to Optimal's plans and the impact of factors, risks and uncertainties, known and unknown, to which Optimal's business is subject. The forward-looking statements in this news release speak only as the date hereof. Readers are also referred to risk factors and uncertainties described in filings made by Optimal from time to time with securities regulators.

For additional financial information: http://www.optimalgeo.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information