Looking ahead to the Y.E Financials. The Year End Financials (ending May 31
st) should be out within two weeks give or take.
I don‘t think we‘ll see much new and we pretty well know what to expect, maybe Vizio‘s and Vizio-3DGo numbers spiked up a bit and we‘ll get three weeks on PAN-3DGo results.
They may show more cuts,something I don`t agree at this time.
The Sony infringement deal happened in July and will show up on Q1 around the third week of October.
We‘ll have still deferred revenues from the Samsung switch deal,the WiLan deal and the Panasonic-WiLan switch deal and depending on how they show them with their creative accounting may see a hip or a hop here and there.
We should find out how much money we had in the Bank as of then and the exact amount of warrants cashed till then.
Also (unless the creative accounting prevails) how much it cost to renew the Disney deal.
Maybe a small surprise on Hisense royalties,since they started trickling in January and Cyberlink-Vizio-Hi-Fi etc.
I`m looking more towards Q1 next month.
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There are those that say that out with the old and in with the new,but I always go back to the previous Year End,in this case 2013 and review numbers and projections.
I`m enclosing a condensed report for Y.E 2013.
Our SP was at 0.105 and there were 63.000.000 shares issued.
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Sensio loses $3.86-million in fiscal 2013 2013-09-27 16:04 ET - News Release
Mr. Eric Choquette reports
SENSIO RELEASES ITS RESULTS FOR THE 2012-2013 FISCAL YEAR
Sensio Technologies Inc. has released its results for the fiscal year ended May 31, 2013.
The company saw a decrease in its sales in this period, which went from $1.13-million to $392,000, while deferred revenues continued to rise, from $556,000 as at May 31, 2012, to $926,000 as at May 31, 2013, an increase of $370,000. This increase is due to an advance received upon the signing of the exclusive licence agreement with WiLAN for the commercialization of the Sensio S2D Switch patent. Meanwhile, the company reduced its losses, from $4.3-million last year to $3.9-million in the year just ended. This reduction of the loss aligns with cost-cutting efforts instituted by the company during the year.
"The last year was a difficult one for Sensio in terms of generating revenues, which are much below the potential of the company, its technologies and its intellectual property, and we know that this announcement may be disappointing," commented Nicholas Routhier, president and chief executive officer. "Nevertheless, these figures only tell part of the story, which, in our opinion, is much more positive than at first glance. Du
ring the year, we made some key strategic decisions given the slowdown in our Live 3-D activities and the delay in the launch of 3DGO!. These measures are designed to get Sensio back on the path to growth, while reducing the company's losses in the meantime. The three most important measures instituted were to subcontract the commercialization of the S2D Switch, to abandon the promotion of Live 3-D content and to concentrate our content efforts on 3DGO!, a promising project for the consumer electronics market. This entailed significant internal cuts and rationalization, and we are proud of what the team has accomplished in this difficult context." The results speak for themselves. "Because of the agreement with WiLAN, we were able to recognize deferred revenue during the year and also reduce the costs inherent in maintaining our patents. That agreement also led to the first licensing of the S2D Switch -- to Panasonic -- and the impact of this development will be felt as of the first quarter of fiscal 2014.
Although we knew that the decision to sign with WiLAN would have an adverse impact on our 2013 revenues, pending WiLAN's signing of agreements with the manufacturers, we were still convinced that this was the best decision, both in the short term (cost reduction) and in the medium and long term (greater revenue potential). We also continued our efforts with 3DGO! and ultimately signed content agreements with Disney and Paramount, two of the biggest Hollywood studios, culminating in the launch of 3DGO! on the consumer market. The launch with VIZIO and the subsequent announcement with Panasonic reflect the demand for the product in the market, and we are confident of the future of 3DGO!. "Now that these three major strategic measures are in place and operational, we are confident that we will get back on the track to growth as early as the next quarter, while we continue to reduce our losses in the coming year, a year we are tackling with enthusiasm."
Highlights of the fiscal year ended May 31, 2013:
- $370,003 increase in deferred revenues in the year;
- Operating expenses reduced by more than $1-million and net loss reduced by $472,000;
- U.S. launch of 3DGO! -- a video-on-demand service offering titles from Disney, Pixar, Paramount, Dreamworks Animation and more;
- Signing of a licence agreement with WiLAN for certain patents related to the Sensio S2D Switch;
- Panasonic signs the first patent licence agreement with WiLAN for the Sensio S2D Switch;
- A patent issued to Japan for the Sensio S2D Switch -- the third patent granted for that technology in the world;
- Signing of the first integration agreement for Sensio Autodetect with a major semiconductor manufacturer;
- Closing of a $3.45-million private placement concluded exclusively with institutional investors.
Consumer electronics market -- 3DGO! in the forefront
On the consumer market side, the company posted revenues of $303,038 compared with $901,512 the previous year, a decrease of $598,474. This decrease in revenues can primarily be explained by a decrease in the revenues earned this fiscal year by the Sensio S2D Switch further to the decision to subcontract its exploitation to WiLAN, so as to reduce operating expenses and increase revenue potential in the medium and long term. The previous year, the company had posted significant revenues in the third quarter due to the signing of a patent licence agreement with Samsung for the Sensio S2D Switch technology. In the fiscal year just ended, the deferred revenues on the balance sheet increased from $555,765 to $925,768. The company also continued to invest in its future by launching its VOD platform, 3DGO!, in the U.S. market, by obtaining its Sensio S2D Switch patent in Japan and by adding an American patent for a quincunx spatial image interpolation method, bringing the total number of the company's issued patents to 12. Finally, the company saw its partnership with WiLAN begin to bear fruit when an agreement was concluded between WiLAN and Panasonic, granting Japanese manufacturers rights to Sensio's patents for its Sensio S2D Switch technology.
"In 2013, we significantly repositioned our activities with the signing of the agreement with WiLAN and the launch of 3DGO! in the American market," said Mr. Routhier. "We still believe that the difficulty in accessing quality 3-D content in the consumer market is a determining factor in consumers' slow adoption of this tremendous experience. With its user-friendliness, its impressive library of quality 3-D content and its easy access thanks to its connected TV model, we believe that 3DGO! will be successful in this market. The initial results, after just a few months of operation, are encouraging in terms of the growth in the number of subscribers and rental frequency. Sin
ce the launch with VIZIO and the recent announcement with Panasonic, we have been in discussion with numerous other manufacturers that want to offer 3DGO! on their 3-D TVs. With the arrival of 4K TVs, the vast majority of which support 3-D, our Sensio hi-fi 3-D technology will be put to even better use, which is a good sign for Sensio. So I can reiterate that, with the combination of revenues from the rental of movies on 3DGO!, the expected growth in the number of products that integrate Sensio hi-fi 3-D technology, the commercialization of Sensio Autodetect with SoC manufacturers and WiLAN'S exploitation of the Sensio S2D Switch, we will see significant progress in terms of revenue from the CE market in the coming year." Activities in the Live 3-D market generated revenues of $52,510 in 2012-2013 compared with $142, The Live 3-D market -- a shift in activities514 in 2011-2012, a decrease of $90,004. The decrease can be explained by the fact that the company presented no Live 3-D events this past year, while it had broadcast some of the NBA finals games in Europe the previous year. "In the last year, only a very limited number of Live 3-D events were shown in movie theatres, which had a major impact on our revenues in this market," noted Richard LaBerge, executive vice-president and chief business development officer. "Fa
ced with this reality, we decided to shift our efforts in this market to the rollout of the technology and technical support for events. We will continue to support our long-time partners in their efforts to distribute Live 3-D events. However, we will no longer be undertaking promotional or direct distribution activities, preferring to concentrate our resources on the consumer market, which is rapidly developing for us." Private placement update
On Sept. 18, 2013, the company announced changes to the conditions of the private placement originally announced June 3, 2013, which would take the form of convertible debentures. The company decided that it was preferable to do a private placement in units of $2.5-million with an overallotment option of 15 per cent. Every unit, worth 10 cents, will consist of one common share and a warrant to purchase one common share at a price of 18 cents, which can be exercised during the two years following the closing.
On Sept. 27, 2013, subject to the terms and conditions of the subscription agreement, investors have committed to subscribe for 15.4 million units for a total of $1.54-million. The company anticipates that the closing of the first tranche will be on or around Oct. 3, 2013, subject to regulatory approvals.
"We are grateful for the confidence in our business plan shown by the investors despite the current difficult financial market environment for small-cap companies," explained Mr. Routhier. "In the coming months, we will work towards increasing our revenues and reducing our operating expenses in order to break even as quickly as possible. The company, its board of directors and all of its employees are making the commitment to work towards that goal." Summary of financial results
For the fiscal year ended May 31, 2013, Sensio posted revenues of $392,356, compared with $1,130,541 in 2012, a decrease of $738,185 or 65.3 per cent. The decrease in revenues can primarily be explained by a decrease in revenues from the S2D Switch compared with the previous year, when the company signed an agreement with Samsung for that patent, and the lack of Live 3-D events broadcast during this fiscal year. The Live 3-D market generated revenues of $52,510 in 2013 versus $142,514 in 2012, a decrease of $90,004. In the comparative period, the company had broadcast some of the NBA finals games live in Europe, while there were no such events broadcast this year.
For the year ended May 31, 2013, Sensio earned a gross profit of $334,905, or 85.4 per cent of its revenues, compared with $1,016,547 or 89.9 per cent of its revenues the previous year. During the year, the company's management continued its efforts to control expenses, so as to optimize the use of the company's financial resources while ensuring that it achieved its commercial objectives. Management succeeded in reducing the company's operating expenses by $1,044,260 (or 19.9 per cent) and reducing the loss by $471,876 (or 10.9 per cent) in the year.
More specifically, the company's selling expenses amounted to $2,223,937 compared with $2,833,000 the previous year, a decrease of $609,063 or 21.5 per cent. This decrease can primarily be explained by a reduction in the payroll and trade show expenses and lower Live 3-D fees. The company's research and development expenses amounted to $566,885 (net of the research and development tax credit and a subsidy from the National Research Council of Canada totalling $362,114) compared with $803,863 (net of the $201,986 research and development tax credit) the previous year. This decrease of $236,978, or 29.5 per cent, is largely due to a subsidy obtained from the NRC under the industrial research assistance program. Finally, administrative expenses amounted to $1,421,843 for the year ended May 31, 2013, compared with $1,620,062 the previous year, a decrease of $198,219 or 12.2 per cent.
Sensio's net loss for the year ended May 31, 2013, stood at $3,862,998 or six cents per share, compared with $4,334,874 or eight cents per share as at May 31, 2012.
SELECTED FINANCIAL INFORMATION
As at and for the year ended
May 31, May 31, May 31,
2013 2012 2011
Statements of comprehensive (loss)
Revenues $392,356 $1,130,541 $1,253,267
Gross profit 334,905 1,016,547 1,225,538
Net (loss) and comprehensive (loss) (3,862,998) (4,334,874) (4,590,830)
Basic and diluted (loss) per share (0.06) (0.08) (0.09)
For more details, please see management's discussion and analysis and the financial statements for the reference period on the Sensio website.
We seek Safe Harbor.