Synodon Generates Positive Net Income in Q4-2014
By Marketwired News
By Marketwired News
EDMONTON, ALBERTA–(Marketwired – March 2, 2015) –
|Fiscal 2014 financial highlights||Fiscal 2014 operational highlights|
|• Revenue grew 186% to $2,084,551||• Average survey km/client increased 170%|
|• Gross profit increased 276% to $1,379,326||• Average revenue per survey km increased 6%|
|• Gross margin increased to 66%||• Surveyed 28,853 kilometers of pipeline|
|• Net loss declined 40%||• FAA approval for more efficient helicopter|
|• Ordered two more realSens™ instruments|
Synodon Inc. (TSX VENTURE:SYD) today announced results for the fourth quarter and year ended October 31, 2014. Revenue grew 222% in Q4-2014 to $1,299,850 from $403,126 in Q4-2013. Revenue for the full year increased 186% to $2,084,551 from $729,172 in fiscal 2013. Gross margin was 76% in Q4-2014 compared to 50% in Q4-2013 and increased to 66% for the full year ended October 31, 2014.
Adrian Banica, CEO of Synodon commented: “We are very pleased with the progress we made this year. Growth was achieved by expanding the number of kilometers flown for our existing clients and by introducing new services to those clients. In the last two quarters of the fiscal year, historically the busiest part of the year, our realSens™ unit was utilized nearly full-time, and we have ordered two additional instruments to support our growth objectives for the current year. In addition to growing our revenue base, we are operating more efficiently as a result of the experience we have gained, coupled with new service offerings and our ability to fly more cost effective aircraft. This contributed to improved gross margins and a positive bottom line result for the fourth quarter.”
Notwithstanding the improvement in revenue and margin that allowed the company to have a profitable fourth quarter, the company does require additional capital to fund ongoing operations. Management is currently reviewing several options to meet those requirements.
Annual Financial Statements and MD&A
Information in this press release was extracted from Synodon’s annual consolidated financial statements and management’s discussion and analysis for the year ended October 31, 2014, which can be found on the company’s website at www.synodon.com or on SEDAR at www.sedar.com.
This press release includes forward-looking statements about Synodon Inc., including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’ or negative versions thereof and similar expressions.
In addition, any statements that may be made concerning future financial performance, ongoing business strategies and prospects, and possible future action on the Synodon’s part, are also forward-looking statements that reflect our current beliefs and are based on information currently available to us and on assumptions that we believe are reasonable. These assumptions include, but are not limited to, our ability to predict market demand for our products and services. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties which can be beyond our control. These include, but are not limited to, general economic conditions in the countries that we are pursuing contracts in, currency fluctuations and other changes in the competitive environment that Synodon operates in. For more information, please see the discussion on the principal risks that could affect our results under the section “Risks Relating to the Business” of Synodon’s 2014 MD&A. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements in this press release are made to describe management’s expectations and assist shareholders in understanding our financial position. Readers are cautioned that the forward-looking statements presented in this press release may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise unless specifically required by applicable securities legislation.
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.
President & CEO