SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

March 03, 2008 08:00 ET

Syscan Final Results for First Half of Fiscal 2008 Show Revenues Up 265% and 56% EBITDA Increase

MONTREAL, CANADA--(Marketwire - March 3, 2008) - Syscan International Inc.(TSX VENTURE:SYA) today reported final results for the second quarter of fiscal 2008 ended December 31, 2007, which continues a trend of consecutive quarters posting significant sales increases and operating improvements.

The Company's growth strategy is continuing to show positive results. Sales increased 240% for the three-month period to $1,433,772 over $421,970 in the second quarter of the previous year. Beginning in the last quarter of fiscal 2007 the Company has posted jumps in revenues for four consecutive quarters, starting a trend that noticeably accelerated in the first quarter of fiscal 2008 when a 297% increase in revenues was reported, propelled by a previously announced C$2 million purchase order (A$2.2 million) from Syscan's Australian subsidiary.

Three months ended December 31, 2007, compared to three months ended
December 31, 2006:



2nd Quarter 2nd Quarter
------------------------------------------------------------
FY 2008 FY 2007 % Change
------------------------------------------------------------
Revenues $ 1,433,772 $ 421,970 Up 240%
Cost of Sales $ 1,041,463 $ 192,877 Up 440%
Gross Margin $ 392,309 $ 229,093 Up 71%
Operating Expenses $ 526,497 $ 346,753 (i)Up 52%
EBITDA $ (99,700) $ (144,585) Improved 31%
Net Profit $ (185,100) $ (152,641) Up 21%
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(i) Over 32% of the expense increase was depreciation.

Six months ended December 31, 2007, compared to six months ended
December 31, 2006:

1st Half 1st Half
--------------------------------------------------------
FY 2008 FY 2007 % Change
--------------------------------------------------------
Revenues $ 2,726,917 $ 747,698 Up 265%
Cost of Sales $ 1,819,684 $ 337,967 Up 438%
Gross Margin $ 907,233 $ 409,731 Up 121%
Operating Expenses $ 1,134,096 $ 626,311 Up only 81%
EBITDA $ (155,037) $ (356,291) Improved 56%
Net Profit $ (350,770) $ (372,400) Cut 6%
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Joseph Tassone, President and CEO of Syscan said "The second quarter results continue to show our chosen strategy to accelerate growth by combining both organic sales increases and acquisitions is working. The last two quarters have exceeded our projections and the outlook for the remainder of fiscal 2008 is for continued strong year over year growth.

We are particularly pleased to see improvements in operating results with the Company posting a net loss of $(350,770) for this year when compared to $(372,400) for the first half of the previous fiscal year. EBITDA performance for the first half was even more dramatic at $(155,037) versus $(356,291), representing a 56% improvement and a direct reflection of depreciation expenses associated with acquisitions. Management's opinion is these results show that Syscan is on a promising track to break-even operations and ultimate profitability."

Newer developments with quoted RFID projects in Australia, North and South America show continued revenue growth overall. Additional acquisition opportunities continue to be pursued to add to the Company's offerings for the agricultural and general RFID markets.

About Syscan International Inc.

Syscan is a world class supply chain solution provider that delivers integrated real-time tracking and tracing systems that improve business efficiency through Radio Frequency Identification (RFID). Its standardized supply chain solutions include traceability, temperature monitoring and quality control methodologies for the food, pharmaceutical and healthcare sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 48.0 million shares outstanding.

To receive Company press releases, please email chris@chfir.com and mention "Syscan news" on the subject line.



SYSCAN INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
For the three and six month periods ended December 31, 2007
(Unaudited)
--------------------------------------------------------------------------
2007 2006
3 months 6 months 3 months 6 months
--------------------------------------------------------------------------

$ $ $ $
SALES 1,433,772 2,726,917 421,970 747,698

COST OF SALES 1,041,463 1,819,684 192,877 337,967
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GROSS PROFIT 392,309 907,233 229,093 409,731
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EXPENSES
Administrative expenses 351,447 635,944 258,742 431,631
Selling expenses 110,474 318,522 125,532 233,186
Depreciation of fixed
assets 14,304 29,237 4,035 8,069
Depreciation of
intangible assets 51,924 138,695 4,021 8,041
Gain on exchange (7,088) (1,161) (10,524) (8,667)
Interest on long
term debt 2,793 8,242 - -
Bank charges 2,643 4,617 2,949 2,998
Reduction of inventory
provision - - - (4,000)
Gain on sale of investment - - (37,924) (37,924)
Gain on debt redemption - - (78) (7,023)
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526,497 1,134,096 346,753 626,311
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OPERATING LOSS (134,188) (226,863) (117,660) (216,580)

RESEARCH AND DEVELOPMENT
COSTS (34,533) (104,348) (34,981) (155,820)
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LOSS BEFORE INCOME
TAXES (168,721) (331,211) (152,641) (372,400)
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INCOME TAXES

Current 5,456 (18,750) - -
Future 8,341 35,727 - -
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13,797 16,977 - -
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NET LOSS (182,518) (348,188) (152,641) (372,400)

DEFICIT, BEGINNING
OF PERIOD (15,301,273) (15,135,603) (14,197,737) (13,977,977)
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DEFICIT, END OF
PERIOD (15,483,791) (15,483,791) (14,350,378) (14,350,377)
--------------------------------------------------------------------------

Amounts per share

Net loss per share
(basic and diluted) (0.0039) (0.0074) (0.0039) (0.0095)
Weighted average
number of issued
and outstanding
shares 47,151,018 47,151,018 39,297,380 39,297,380
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The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

Contact Information

  • Syscan International Inc.
    Axel Striefler
    VP Investor Relations
    514-631-7144
    info@syscan.com
    or
    Syscan Customer Information
    514-631-7144
    1-888-479-7226
    www.syscan.com
    or
    CHF Investor Relations
    Jeanny So
    Director of Operations
    416-868-1079 ext 225
    jeanny@chfir.com