TORONTO--(BUSINESS WIRE)--NamSys Inc. (CTZ – TSX-V) today reports the results of operations for the first nine months and the third quarter of fiscal 2020 ended July 31st. All amounts referenced herein are in Canadian dollars. Revenue for the third quarter was $1,196,264 as compared to $1,069,733 for the same period last year; an increase of 11.8%. Net income before tax for the quarter of $156,638 ($0.01 per share) was recorded as compared to $338,141 ($0.01 per share) for the nine months ended July 31st, 2019.
Revenue for the first nine months of fiscal 2020 was $3,509,996 as compared to revenue in the same period last year of $3,011,116; an increase of 16.6%. The Company recorded net income of $822,857 ($0.03 per share) in the nine months ended July 31st, 2020 as compared to $1,043,728 ($0.04 per share) in the same period last year.
The Company accrued $250,488 in expense in the quarter compared to $46,932 in the same period last year for future obligations associated with the Employee Long Term Bonus Plan. Year to date $496,066 has been accrued compared to $46,932 for the same period last year. The cumulative amount accrued at July 31, 2020 is $659,784.
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.
The financial statements and Management’s Discussion and Analysis for the fiscal quarter ended July 31, 2020 are available under the Company’s profile on SEDAR at www.sedar.com.
The “Smart Safe” solution is only one of many initiatives that NamSys is taking to streamline the processing of currency. The present “Cirreon” initiatives include:
- Web and mobile applications for commercial/online banking
- Logistics management for cash-in-transit providers
- Exploring industries with similar high-security logistics challenges
These changes to traditional practices take time for the parties to understand and internalize. While we are spending considerable time to move the above initiatives forward, the operating results are now starting to reflect the fruits of our labour. This includes the recent execution of new distribution agreements with several North American Cash in Transit companies.
It remains our belief that we will continue to grow and achieve greater revenue and profitability in 2020 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’ 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.