Live 3D Market - Major Refocusing of Activities
The Company's revenue from the Live 3D market in the quarter amounted to $6,029, while it was nil in the previous quarter (Q2-2013) and in the comparable quarter a year earlier. This difference is due to revenue received from the activation of licences during the quarter for the Live 3D broadcast of an event held in Europe.
"In the last year, very few events were shown on theatre screens in Live 3D, which significantly affected our revenue from this market," said Richard LaBerge, Executive Vice-President and Chief Business Development Officer. He went on to say that, "Faced with this reality, we decided to refocus our efforts in this market on the roll-out of technology and on technical support for events. We will continue to support our long-standing partners in their efforts to distribute Live 3D events, as in the last quarter with the European presentation of a fashion show using our SENSIO® Hi-Fi 3D technology. But we will no longer take part in new promotion or direct distribution, concentrating our resources instead on the consumer market, which is developing rapidly for us."
Consumer Electronics Market - 3DGO! Front and Centre
On the consumer side, the Company posted revenue of $91,880 compared to $84,867 in the previous quarter, a slight increase of $7,013. However, the revenue in this quarter is lower by $580,260 in comparison to the $672,140 earned in the comparable quarter a year earlier. The lower revenue can be explained by the signing of a patent licence agreement with Samsung for the S2D Switch technology in the third quarter of the previous year. Note that recurring revenue from technology licences continued to progress in this quarter, rising from $33,572 in 2012 to $35,936 in 2013.
"After many months of development and several delays, 3DGO! will be rolled out in the U.S. market, which is an important milestone in our growth agenda," said Routhier. "We would like to acknowledge the confidence our clients and partners have shown us, by continuing to believe in us and in the added value of 3DGO! This has made it possible for us to broaden the 3DTV base supporting the SENSIO® Hi-Fi 3D technology in the marketplace, and ultimately sign the recent agreements with major Hollywood studios, as per our game plan. The upsurge in technological and commercial discussions with the electronics manufacturers confirms that our content strategy is currently working. Combined with the revenue from 3DGO! film rentals, the expected growth in the number of products incorporating the SENSIO® Hi-Fi 3D technology in the U.S. market, the continued promotion of SENSIO® Autodetect to SoC manufacturers and the expected outcome of initial negotiations with WiLAN for the SENSIO® S2D Switch, we firmly believe that we will be in a position to see significant progress in revenue from the CE market in the next year," Routhier added.
Summary of Financial Results
In the third quarter of 2012-2013, the Company posted revenues of $112,792 compared to $679,913 in the comparative quarter the previous year, a decrease of $567,121 or 83.4%.
During the quarter, the Company's management continued their efforts to control expenditures so as to optimize the use of the Company's financial resources, while ensuring that commercial objectives would be achieved. Accordingly, management succeeded in reducing operating expenses by 29.1% in the quarter ended February 28, 2013.
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