TORONTO, June 27, 2014 /CNW/- Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first six months and the second quarter of fiscal, 2014, ended April 30th. All amounts referenced herein are in Canadian dollars. Revenue for the second quarter was $325,683 as compared to $272,710 for the same period last year. Net income for the quarter of $11,013 ($0.00 per share) was recorded as compared to $26,579 ($0.00 per share) for the three months ended April 30th, 2013.
Revenue for the first six months of fiscal 2014 was $595,367 as compared to revenue in the same period last year of $503,598. The Company recorded net income of $121,490 ($0.00 per share) in the six months ended April 30th, 2014 as compared to $22,389 ($0.00 per share) in the same period last year.
K. Barry Sparks, the President of the Cencotech, stated: "The Company is continuing to make progress in moving new product sales opportunities forward, particularly with respect to our Cirreon SaaS and related software offerings. New customers for the Company's products are increasingly requesting that products be offered on a "software as a service" basis (SaaS), as opposed to purchasing a term licence for such software from the Company. While as noted previously, this reduces the recording of one time larger licence sales completions, we are completing more deals on a contracted 'pay as you go' usage basis. Total recurring contracted software revenue accounted for 78% of total sales in the quarter ended April 30, 2014.
As the bulk of the Company's sales are in US dollars, quarterly fluctuations in the exchange rate between Canadian and US dollars impact the reported income of Cencotech. Revenues are converted to Canadian dollars when sales are completed and booked. Foreign exchange adjustments are then required when payments are actually received. This foreign exchange adjustment negatively impacted stated Comprehensive Income in the Quarter ended April 30, 2014 by $41,339. However, the six month results include foreign exchange gains of $16,213."
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, large retailers, public transportation operations and the gaming industry. Cencotech's proprietary software products for this market are "open-architectured" and have been developed to interface with clients' legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release may contain forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation's sales strategies.
SOURCE CencoTech Inc.