- Full-year revenue is expected to be more than 35% greater than the $22.2 million generated in 2008. This has been achieved through growth in all aspects of our business. - EBITDA, excluding foreign exchange losses, is expected to grow by more than 125% over the $1.7 million EBITDA for 2008. - Recurring revenue for the year is expected to be approximately $3.5 million, compared to $2.5 million in 2008. - Gross margin for the year is expected to remain in excess of 60%.
Total confirmed backlog (contracts in place) plus notified contract awards currently stands at
We have identified the following sectors and regions which we expect will help to deliver growth in addition to our current markets through 2010 and beyond:
- Leak detection, inspection and condition assessment in the wastewater sector: We expect to generate opportunities as a consequence of increasing regulatory scrutiny, particularly in the US, where the Environmental Protection Agency is implementing Consent Decrees on wastewater agencies as a means of addressing sewer overflows and discharges. The wastewater market is at least as large as the water market, and suffers from a dearth of effective inspection and condition assessment technologies. We will leverage our newly-acquired robotics capability, as well as SmartBall(R) and new in-line inspection tools to be introduced in the near future, to establish a strong presence in this sector. The acquisition of Jason Consultants in late 2009 allows us to add value to our technology offerings in the space, as Openaka has done in the prestressed pipe market. - Mexico and South America: We increased our business development activities significantly in the large-diameter pipe market in these regions in 2009, and we expect this investment to result in an increase in commercial activity in the near term. - Middle East: The establishment of our Abu Dhabi office will allow us to pursue and service business in the Middle East region, where there is an increasing awareness of the need to conserve water resources. We are currently in the process of planning a number of SmartBall(R) demonstration projects, and we are also pursuing large-diameter pipeline management opportunities. We expect the region to generate meaningful revenue in 2010. - East Asia: Through our Chinese partner, Nanjing Hydraulic Research Institute, we have identified several high-value opportunities for pipeline inspection and monitoring. We are in the process of establishing an office in Hong Kong in partnership with a local company to service these opportunities and to grow our general inspection and monitoring business in Hong Kong, Macau, China and Taiwan.
While our cash reserves will be reduced in the short term in order to service our growing backlog, we expect our working capital position to strengthen considerably as the year progresses. We plan to maintain our commitment to investment in research and development and in international business development, and we continue to pursue opportunities for acquisitions.
ABOUT PURE TECHNOLOGIES LTD.
Pure Technologies Ltd. is an international technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure operates from its headquarters in
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