Canadian Biometrics Company Reports Net Loss of CND $960K

Comnetix Inc, a leading provider of biometric identification and authentication solutions, announced today that for the fourth fiscal quarter ended August 31, 2004, revenues were CND $1.8 million with a net loss of $960,000, or $0.13 loss per share. For the fiscal year ended August 31, 2004, revenues were CND $4.7 million with a net loss of $2.3 million, or $0.33 loss per share.

In the comparable periods of 2003, revenues for the fourth fiscal quarter ended August 31, 2003, were CND $1.7 million with net income of $260,000, and for the year ended August 31, 2003, revenues were CND $5.5 million with a net profit of $235,000.

Expenses increased throughout fiscal 2004, including the fourth quarter, as the company embarked on its business-growth strategy by increasing its sales force, reorganizing and strengthening its management team and developing its Java-based business solution. Included in fourth quarter expenses were a non-cash stock compensation expense of CND $161,000 and charges related to an executive reorganization of CND $135,000.

Jim Scullion, chief executive officer of Comnetix, said, "The company experienced significant change and progress in the second half of fiscal 2004. In April, we laid out a clear direction for the company in our prospectus. Since then, we have been successfully executing on the strategic objectives we identified. We've strengthened our executive team with the appointment of Tim Zahavich as CFO, Carter Marantette as vice president sales and marketing and John Conohan as vice president of fingerprinting services. We've expanded existing strategic relationships and formed new ones. In addition, with the acquisition of International Fingerprinting Services Canada Ltd., we've diversified our revenue stream and established what we believe is a solid foundation for growth in the fingerprinting services business.

"For fiscal 2005, we are focused on expanding our presence in Canada and further penetrating the US market. We are confident that we have the team and the solutions to succeed in these efforts and that 2005 will be a bright year for Comnetix."

Zahavich noted that during the quarter the company's balance sheet remained solid, with cash and cash equivalents at $7.4 million, a current ratio at August 31, 2004, of 3.2:1, and total assets of $10.3 million. The company had no long- or short-term debt as of August 31, 2004.

Loading