SENSIO Technologies Inc.

SENSIO Technologies Inc.

September 24, 2009 11:12 ET

SENSIO Presents Its Results for the 2008-2009 Fiscal Year, Which Marks the First Significant Revenues From Sales of Licenses

MONTREAL, QUEBEC--(Marketwire - Sept. 24, 2009) - SENSIO Technologies Inc. ("SENSIO") (TSX VENTURE:SIO), inventor of the SENSIO® 3D technology, presents its financial results for the fiscal year ended May 31, 2009. During this fiscal year, SENSIO made a major mark on the digital movie market, which is currently undergoing rapid growth, by deploying its technology in movie theater networks in the United States and Europe. "We are very proud to have accomplished this penetration into the digital movie market, which has enabled us to solidify our business model based on sales of licenses. A large percentage of SENSIO's revenues for this year come from sales of licenses for our technology to movie theaters, which will remain an important source of revenues in the current year. With recent developments and the acceleration observed in the consumer market, we are very confident that SENSIO will be able to achieve important penetration of this market in 2009-2010", explains Nicholas Routhier, SENSIO's President and Chief Executive Officer.

Important facts from the 2008-2009 fiscal year

- SENSIO's technology, which enables live broadcasting of 3D events, is deployed in movie theaters in the United States and Europe

- SENSIO signs a first contract for the sale of licenses with ArcSoft, Inc. for integration of its S3D decoder software into a consumer product

- The SENSIO® 3D format is standardized in the DVD standard and becomes the only 3D format to be recognized worldwide by a standardization organization for distribution of 3D content in the consumer market

- SENSIO increases its gross margin by 29.3% for the 2009 fiscal year compared to that of 2008, reaching 74% and further approaching the margins anticipated in its business model

- Growth in sales of 18.8% for the 2009 fiscal year compared to that of 2008

- SENSIO completes a private placement of $1,500,100 and receives $293,912 following the exercising of warrants

SENSIO is becoming the de facto standard in movie theaters

During the fiscal year, SENSIO succeeded in making its mark by providing the only technology enabling live broadcasting of 3D events to be deployed in movie theater networks. Since SENSIO technology has been used to date for all live 3D events before a paying audience, the company has positioned itself as a leader to become the de facto standard in the digital movie theater market. The development of this line of business has enabled SENSIO to obtain increased visibility among players in the 3D industry in addition to having generated revenues of $440,010 during the 2009 fiscal year compared to $12,554 in 2008. "The interest of consumers in this type of entertainment has been confirmed during the events held to date. Important players in the industry have decided to follow suit and produce live 3D events. This is now a strong trend, and we are confident that this new type of entertainment will experience a significant increase during the coming quarters," says Routhier.

Significant advances in the consumer electronics market

With the success achieved by 3D films at the box office, the Hollywood studios have significant financial motivation to release their films in 3D for the home starting in 2010 in order to benefit from potential revenues in the home-theater market, which represents 55% of all revenues generated by a film. For its part, SENSIO has made strategic advances during the year to better respond to the needs of manufacturers and to facilitate the integration of its technology. In this sense, the standardization of its format in the DVD standard is a major advance for SENSIO. "At the present time, when manufacturers are evaluating the various 3D technologies available, we have succeeded in positioning ourselves ahead of the competition by becoming the only distribution technology for 3D content to be standardized. The next step is to obtain recognition in the Blu-ray standard," says Routhier.

SENSIO has enhanced its product offering by presenting the premiere of its S3D decoder software at the 2009 Consumer Electronics Show. This all-new product, designed for the PC market, has attracted a buyer within only a few weeks after its launch. SENSIO has signed a contract for the sale of licenses with ArcSoft, Inc. for integration of its S3D decoder software into a consumer product. The S3D software opens the door to the PC market, and represents a new growth target for SENSIO.

Capital injections totaling $1,794,012

Despite the difficult economic context, SENSIO proceeded with a round of financing in February 2009 which provided an amount of $1,500,100 as part of a private placement. The majority of this private placement was completed with institutional investors who were already SENSIO shareholders. They thus demonstrated the confidence they have in the company and in its ability to meet fixed objectives. SENSIO also proceeded with an issue of shares following the exercising of warrants which enabled it to collect the amount of $293,912.

Summary of financial results

SENSIO's revenues for the fiscal year ended May 31, 2009 were $524,744 compared to $441,844 in 2008, an increase of $82,900 or 18.8%. The revenues generated during the fiscal year came principally from the digital movie market, that is, the sale of licenses for the SENSIO® 3D technology in movie theaters and the sale of additional encoders and decoders.

Variations in Operating Expenses

Sales and marketing expenses increased during the fiscal year ended May 31, 2009 compared to the previous fiscal year, from $769,083 to $1,129,235. This increase can be explained mainly by the addition of personnel to support marketing initiatives, the hiring of external consultants specializing in business development, the hiring of a firm to represent SENSIO in the U.S. market, contributions to become a member of standardization organizations and the increase in representations undertaken by SENSIO in Asia, Europe and the United States.

During the 2009 fiscal year, research and development expenses were $384,080 compared to $398,962 in 2008. This variation can be explained mainly by the difference between the provision for tax credits and the amount received. It is also due to non-recurring expenses relating to the development of encoder and decoder cards registered during the previous fiscal year.

Administrative expenses were $1,022,552 for the fiscal year ended May 31, 2009 compared to $897,907 for the previous fiscal year, an increase of $124,645 or 13.9%. This increase can be explained mainly by the increase in legal costs following the preparation of contracts.

Principal Financial Information

Years ended May 31 Quarters ended May 31
audited unaudited

2009 2008 2009 2008
Statement of results
Sales 524,744 441,844 247,193 262,375
Gross profit 393,047 201,432 151,794 67,408
Net loss and
results (2,264,222) (2,033,769) (632,093) (562,344)
Net loss per
common share (0.0633) (0.0630) (0.0158) (0.0166)
Balance Sheet
Cash, cash
equivalents and
term deposit 852,015 1,177,359 852,015 1,177,359
Total assets 2,075,054 2,530,787 2,075,054 2,530,787
Long-term debt
including short-
term portion 291,018 542,057 291,018 542,057
Total liabilities 891,172 917,889 891,172 917,889

equity 1,183,882 1,612,898 1,183,882 1,612,898


Founded in 1999 and headquartered in Montreal, Canada, SENSIO 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.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information