Seprotech announces third quarter fiscal 2012 results and operational update

Jun 22, 2012, 15:54 ET from Seprotech Systems Incorporated

OTTAWA, June 22, 2012 /CNW/ -   Seprotech Systems Incorporated (TSXV: SET) ("Seprotech" or the "Company") announces the following unaudited results for the three and nine months ended May 31, 2012 with comparative unaudited results for the equivalent periods in fiscal 2011.

  Three Months Ended
May 31
  Nine Months Ended
May 31
  2012 2011   2012 2011
  $000 $000   $000 $000
Revenue 2,746 678   5,347 2,197
Gross Margin 669 159   1,323 583
Net Loss (76) (505)   (569) (1,088)
Loss per share (0.00) (0.01)   (0.01) (0.01)

Third quarter 2012 revenues continued to grow as compared with both the preceding quarter and the same quarter in 2011.  Margins are beginning to recover, and with the exception of margins on water and wastewater systems, are returning to historical levels or better. There was strong revenue growth from each sector of operations.

Operating costs were significantly higher than for both the prior quarter and the equivalent period in 2011, which largely reflected incremental hiring costs as required to execute new business, as well as travel costs arising from business development activities.

The net loss of $76,332 in the quarter and a net loss of $569,296 in the nine months is a significant improvement over the comparable periods in 2011, with the Company now operating at close to break-even.

"These numbers reflect continued improvement in both our sales efforts and getting our product out the door," said Harry Marshall, President and CEO. "We see this trend continuing as we execute on our plan -- fulfilling current orders and building future sales opportunities. Our new team is focused on this growth strategy to regain profitability."

The Company also announced during the quarter that it had entered into a non-binding letter of intent to acquire 100% of privately held WESA in a reverse takeover (the "Transaction"). Upon completion of the Transaction, the combined entity (the "Resulting Issuer") is expected to be a leading provider of earth sciences expertise, water resources and environmental engineering services, and wastewater/water treatment systems. The intent is to build an integrated product and service organization that provides intelligent solutions to complex environmental problems both in Canada and abroad. The merger is subject to shareholder and regulatory approvals, including the approval of the TSX Venture Exchange, and is targeted to close by the end of August, 2012.

About Seprotech:

Seprotech is a provider of pre-engineered water and wastewater treatment solutions to the municipal/land development, resource sector, and military market place.  Products include Reverse Osmosis water purification systems, ROTORDISK® biological sewage treatment package plants and CrystalBlue™ membrane-based water recycling systems.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.

SOURCE Seprotech Systems Incorporated