TORONTO, March 23, 2016 /CNW/ - Cencotech Inc.
(CTZ – TSX-V) today reports the results of operations for the
first three months of fiscal 2016, ended January 31st. All amounts referenced
herein are in Canadian dollars.
Revenue for the first three months of fiscal 2016 was
$495,285 as compared to $346,572 for the same period last year. Income
before Income Tax, a key metric engaging business performance, was
$253,080 ($0.01 per share), as compared to $232,756 ($0.01 per
share) in the first quarter of 2015. While the Company is not
presently taxable due to loss carry forwards from previous years,
in 2015 the estimated tax value of the loss carry forwards were
capitalized. As a consequence, the 2016 first quarter results
include a deduction of income tax of $67,066, while the 2015 results show no tax
payable. Therefore, Comprehensive Income for the first quarter of
2016 was $186,014 ($0.01 per share) compared to $232,756 ($0.01 per
share) for the comparable period in 2015. It is also noteworthy
that the gain in foreign exchange, over which the Company has no
control, was $89,234 in the first
quarter of 2015, as compared to $55,609 for the same period this year.
The consolidated financial statements and Management's
discussion and analysis for the first quarter of 2016 are available
under the Company's profile on SEDAR at www.sedar.com.
K. Barry Sparks, the President of
Cencotech, stated: "In excess of 75% of the revenue generated in
the quarter was recurring in nature. This includes maintenance,
systems upgrades, monitoring fees and sales of software product as
a service ("SaaS"). The "Cirreon™"group of applications hosted by
the Company's subsidiary, Namsys Inc, and sold on a cloud usage
basis continues to make excellent progress in the marketplace.
The Management challenge for the Namsys Team for 2016 is to
continue to grow distribution. Management are working diligently to
assist existing distributors expand the use of our products in
their networks and at the same time initiating new distributors
offering our products through their networks.
Based upon the success in the marketplace of the Cirreon
products in addition to a satisfied base of CC32 licence holders,
it remains our belief that the Company will continue to make
strides in achieving greater revenue and higher profits in 2016 and
beyond."
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.