SOURCE: Viscount Systems Inc.

November 14, 2006 09:00 ET

Viscount Reports Q3 2006 Results

BURNABY, BC -- (MARKET WIRE) -- November 14, 2006 -- Viscount Systems Inc. (OTCBB: VSYS) announced results for the third quarter ending September 2006. Net income improved from a loss of $256,609 in Q2 to a loss of $25,769 for Q3, a reduction of 90%. Revenue was $1,131,576 compared to $1,318,153 for Q3 2005. The lower revenue reflected a decrease of legacy Enterphone sales from $626,569 for Q3 2005 to $339,155 for Q3 2006. This was partly offset by continued growth of MESH products to $254,556 with MESH now accounting for 25.5% of total sales. As well, the strong Canadian dollar continued to impact total revenue.

Steve Pineau, Viscount President and CEO commented on the results:

"The future of Viscount is MESH. The first nine months of 2006 reflected lower sales of obsolete Enterphone technology and the planned transition to MESH. Looking forward we are forecasting sales to increase 50% in 2007 and to increase by 300% in 2008 compared to 2006. This improvement is based on a number of factors.

"We have a large backlog of projects booked in the early commercial stages of MESH in 2004-2005 and these will be shipping in 2007. With the release of MESH V5, the average dollar value per order has also increased.

"The recent release of MESH Enterprise completes the transition from Voice panels for multi-residential projects to full facility security for commercial, industrial and government facilities. Our Enterprise literature is available at www.viscount.com/Pdf/new_brochure/mesh.pdf.

"The full release of our new EPX system in Q4 will replace Enterphone and recover lost revenue. The release of MESH View video applications will allow Viscount to enter the large video security sector. MESH has powerful advantages for U.S. Government HSPD-12 projects and large numbers of facilities will begin making their transition in 2007. This market will be a primary focus for MESH."

About Viscount Systems

Viscount Systems Inc., is a designer and manufacturer of telecommunications and electronic door control access systems for the security industry. From 1969-1997 Viscount was an R&D affiliate of Telus, itself a controlled subsidiary of GTE, now Verizon Communications. The company's diverse line of products are designed to improve safety and manage security for property owners and users. Viscount's products have been installed in approximately 35,000 sites in over 30 countries and are sold through a 500 member, North America-wide dealer network comprised of security equipment vendors, including Tyco/ADT, Honeywell and Siemens.

Additional information on Viscount's products may be obtained on-line at http://www.viscount.com. Financial statements are available from the company's registration statement filed with the U.S. Securities and Exchange Commission on February 6, 2002, which may be viewed at www.sec.gov or the company's web site www.viscount.com under the heading "Investor Relations." For further information, or to be placed on email NEWS ALERT please e-mail to ir@viscount.com or call toll free 1-866-252-9446.

Safe Harbor Statement

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Viscount Systems Inc., nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Forward looking statements: This press release and other statements by Viscount Systems Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.

Contact Information

  • For more information, contact:
    Greg Werbowski
    Viscount Systems, Inc.
    Investor Relations
    Toll Free 1-866-252-9446