TORONTO--(BUSINESS WIRE)--NamSys Inc. (CTZ – TSX-V) today reports the results of operations for the first six months and the second quarter of fiscal 2017 ended April 30th. All amounts referenced herein are in Canadian dollars. Revenue for the second quarter was $751,963 as compared to $561,021 for the same period last year. Net income before tax for the quarter of $387,038 ($0.01 per share) was recorded as compared to $163,536 ($0.01per share) for the three months ended April 30th, 2016.
Revenue for the first six months of fiscal 2017 was $1,443,219 as compared to revenue in the same period last year of $1,056,308. The Company recorded net income before tax of $675,951 ($0.025 per share) in the six months ended April 30th, 2017 as compared to $416,616 ($0.02 per share) in the same period last year.
The Company has chosen to compare year over year Comprehensive Income before taxes because the Company is not yet fully taxable due to losses in previous years. As the bulk of the Company’s sales are in US dollars, fluctuations in the exchange rate between Canadian and US dollars impact reported income. 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, 2017 by $1,364. However, for the six month fiscal period foreign exchange gains totalled $46,542. This compares to fiscal 2016 foreign exchange losses of $11,467 for the quarter and a loss of $67.076 for the 2016 fiscal half year.
The consolidated financial statements and Management’s Discussion and Analysis for the fiscal quarter ended April 30th, 2017 are available under the Company’s profile on SEDAR at www.sedar.com.
K. Barry Sparks, the Chief Executive of the Company stated: “The Company is continuing to make progress in moving new product sales opportunities forward, particularly with respect to its Cirreon SaaS and related software offerings. New customers are continuing to request 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, the Company is completing more deals on a contracted ‘pay as you go’ usage basis. Total recurring contracted software revenue accounted for in excess of 74% of total sales in the quarter ended April 30, 2017.
Management’s continuing challenge for the Namsys team is to grow distribution. To this end the Company is working diligently to assist existing distributors expand the use of our products in their networks and at the same time is initiating new distributors to offer our products through their networks. Continued successful execution should result in greater revenue and higher profits in 2017 and beyond.”
NamSys 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. NamSys’’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.