82% Increase in Revenue and 186% Increase in Gross ProfitEurocontrol Technics Group Inc. (TSX-V:EUO) (OTCQB:EUCTF) (“Eurocontrol” or the “Company”), a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application systems focused on the energy security, semiconductor and precision agriculture sectors, announces that it has filed its financial statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ended June 30, 2017. The second quarter results reflect an 82% increase in fiscal year revenue, excluding discontinued operations, to $1,268,811 compared to $696,853 for the six month period ended June 30, 2016. EBITDA for the six month period decreased by $18,573,866 to $(2,774,406) compared to $15,799,460 as at June 30, 2016 which amount reflected the gain on the sale of the Company’s former subsidiary. The Company had a gross profit of $594,108 for the current period compared to $208,003 for the six months ended June 30, 2016, representing an increase of 186%. Included below is a summary table outlining earnings for the second quarter of 2017 compared to the corresponding 2016 period. Subsequent to the end of the second quarter, the Company received the third of the guaranteed earn-out payments of $750,000 from SICPA SA, bringing the total payments to date to $2,250,000.
Included in the financial statements are discontinued operations relating to the Company’s sale of its former wholly owned subsidiary, Global Fluids International (GFI) S.A. (GFI), to SICPA S.A. (“SICPA”), a private Swiss company that is a global leader in the provision of secured identification, traceability and authentication solutions and services, on January 4, 2016 in exchange for $16 million in cash (less transaction payments) and post closing earn-out payments equal to 5% of the net revenues earned by SICPA GFI from contracts entered into (between January 4, 2016 ending January 4, 2022), with a minimum guaranteed of $1.5 million per year for the six year earn-out period (total payment of at least $9,000,000). The Company, through its wholly owned subsidiary, Xenemetrix, entered into a strategic exclusive long term supply, maintenance and support agreement, pursuant to which Xenemetrix will continue to supply to SICPA GFI, Xenemetrix products and services for the oil and gas marking and monitoring field. Further details relating to this sale transaction can be obtained from the Company’s continuous disclosure documents including the MD&A for the quarter ended June 30, 2017.
Bruce Rowlands, Chairman and Chief Executive Officer stated: “This is the third reporting period that our revenue numbers have improved quarter over quarter. The increase in revenues from Xenemetrix for the first half of the year clearly reflects that our investments in updating and marketing the Xenemetrix product line is continuing to increase sales. The strong interest in the Xenemetrix product line and the solid advancements we’ve made in marketing XwinSys’s ONYX metrology system to the semiconductor industry and commercialization and continued advancements at Croptimal, bodes well for a strong second half.”