SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

May 16, 2008 17:56 ET

Syscan Final Results for Third Quarter of Fiscal 2008 Show Revenues Up 91% and 67% EBITDA Increase

MONTREAL, CANADA--(Marketwire - May 16, 2008) - Syscan International Inc.(TSX VENTURE:SYA) today reported results for the third quarter of fiscal 2008 ended March 31, 2008, continuing a trend of consecutive quarters posting significant sales increases.

The Company's growth strategy continues to show positive results. Sales increased 91% for the three-month period to $695,529 over $364,473 in the third quarter of the previous year. Beginning in the last quarter of fiscal 2007 the Company has posted jumps in revenues for five consecutive quarters, starting a trend that noticeably accelerated in the first quarter of fiscal 2008 when a 297% increase in revenues was reported.

Three months ended March 31, 2008, compared to three months ended March 31, 2007:



3rd Quarter 3rd Quarter
FY 2008 FY 2007 % Change
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Revenues $695,529 $364,473 Up 91%
Cost of Sales $230,771 $180,328 Up Only 28%
Gross Margin $464,758 $184,145 Up 152%
Operating Expenses $626,678 $393,630 Up 59%(i)
EBITDA $(117,627) $(356,061) Improved 67%
Net Profit (Loss) $(200,384) $(364,116) Improved 45%

(i) Over 30% of the expense increase was depreciation.



Nine months ended March 31, 2008, compared to nine months ended
March 31, 2007:

9 months 9 months
FY 2008 FY 2007 % Change
-----------------------------------------------------------------
Revenues $3,422,446 $1,112,171 Up 208%
Cost of Sales $2,050,455 $518,295 Up 296%
Gross Margin $1,371,991 $593,876 Up 131%
Operating Expenses $1,758,773 $1,019,942 Up 81%
EBITDA $(272,663) $(712,352) Improved 62%
Net Profit (Loss) $(548,572) $(736,517) Cut 26%


Joseph Tassone, President and CEO of Syscan said "The third quarter results continues to show that our strategy to accelerate growth by combining both organic sales increases and acquisitions, is working. Although the benefits of a very large order in the first half was not repeated this quarter, we continue to enjoy good sales growth, year over year. 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 $200,384 for this year when compared to a loss of $356,061 for the third quarter of the previous fiscal year. EBITDA improvement for the quarter was even more dramatic at a loss of $117,627 versus a loss of $356,061, representing a 67% improvement. This is a direct reflection of increased depreciation expenses associated with acquisitions that are non-cash items, affecting the bottom line but obscuring improved of operating results."

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.



SYSCAN INTERNATIONAL INC.

CONSOLIDATED STATEMENT OF LOSS
For the three months ended March 31
(Unaudited)
-----------------------------------------------------------------
-----------------------------------------------------------------

2008 2007
3 months 3 months
-----------------------------------------------------------------

$ $
SALES 695,529 364,473
COST OF SALES 230,771 180,328
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GROSS PROFIT 464,758 184,145
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EXPENSES
Administrative expenses 304,153 274,719
Selling expenses 228,107 101,395
Depreciation of fixed assets 14,371 4,034
Depreciation of intangible assets 54,953 4,021
Loss (gain) on exchange 15,290 7,053
Interest on long term debt 1,840 -
Bank charges 5,964 2,408
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624,678 393,630
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OPERATING LOSS (159,920) (209,485)

RESEARCH AND DEVELOPMENT COSTS (28,871) (154,631)
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LOSS BEFORE INCOME TAXES (188,791) (364,116)

INCOME TAXES

Current 11,593 -
Future - -
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11,593 -
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NET LOSS (200,384) (364,116)
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Contact Information

  • Syscan International Inc.
    Joseph Tassone
    President
    514-631-7144
    info@syscan.com
    or
    Syscan Customer Information:
    514-631-7144 or 1-888-479-7226
    www.syscan.com
    or
    CHF Investor Relations
    Chris Haldane
    Account Manager
    416-868-1079 ext.237
    chris@chfir.com