TORONTO--(BUSINESS WIRE)--Cencotech Inc. (CTZ – TSX-V) today reports the results of operations for the first nine months and the third quarter of fiscal 2016, ended July 31st. All amounts referenced herein are in Canadian dollars. Revenue for the third quarter was $711,778 as compared to $452,487 for the same period last year. Net income before tax for the quarter was $444,128 ($0.02 per share) as compared to $261,21l ($0.01 per share) for the three months ended July 31st, 2015.
Revenue for the first nine months of fiscal 2016 was $1,768,086 as compared to revenue in the same period last year of $1,251,681. The Company recorded net income before tax of $860,744 (0.03 per share) in the nine months ended July 31st, 2016 as compared to $649,522 ($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. In fiscal 2015, with the concurrence of the Company’s auditors the tax loss carry forwards were assigned a present value and capitalized in the Company’s accounts. Fiscal 2016 Comprehensive Income reflects the taxes which would have been payable had the Company been fully taxable. The bulk of the tax amount for each period is in turn charged against the capitalized tax asset. Prior to the capitalization of such losses, the accounting protocol assumed no taxes were payable. For comparison purposes, the company believes Comprehensive Income before taxes is the appropriate metric.
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 positively impacted stated Comprehensive Income in the Quarter ended July 31, 2016 by $20,742. For the nine month fiscal period the foreign exchange gain was only $9,275. This compares to fiscal 2015 foreign exchange gain of $22,831 for the quarter and a gain of $80,111 for the 2016 fiscal nine months.
The consolidated financial statements and Management’s Discussion and Analysis for the fiscal quarter ended July 31, 2016 are available under the Company’s profile on SEDAR at www.sedar.com.
K. Barry Sparks, the President of Cencotech, stated; “As reported previously, 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. We are pleased with the progress being made and particularly with the market’s adoption of our Cirreon offerings. We remain optimistic for increasing sales and profitability growth going forward.”
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, retailers, public transportation operations and the gaming industry. Cencotech’s proprietary software products for this market are “open-architected” 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.