Opsens' Revenues Jump 250% for Fiscal Year 2008
Opsens has reported its results for the fourth quarter and year ended August 31, 2008.
Revenues rose to $2.8 million in fiscal year 2008 from $813,000 a year earlier, an increase of 250%. Oil and Gas sales totaled nearly $800,000. In the fourth quarter, revenue climbed to $748,000 from $187,000 a year earlier.
Net loss narrowed to $1.3 million or 4 cents a share in FY2008, from a loss of $2.3 million or 8 cents a share a year earlier. In the fourth quarter, net loss narrowed to $228,000 or 1 cent a share from $531,000 or 2 cents a share a year earlier.
Opsens had cash of $3.7 million at the end of FY2008, up from $1.8 million a year earlier.
"We are pleased with the progress we have made in the last year in commercializing our patented fiber optic sensors, including sales to two major oil and gas companies," said Pierre Carrier, president and chief executive. "Our focus in 2009 will be the oil sands market, headed by our Opsens Solutions team in Edmonton," Carrier said.
"Oil sands development costs are among the highest in the world, so producers are motivated to find ways to
increase production and reduce cost through technologies such as our fiber optic sensors, enabling producers to more efficiently produce bitumen.
"With cash on hand of $3.7 million, we are well funded to execute our plans," Carrier said.
Opsens made significant progress in fiscal 2008, including its first sales to the oil sands industry. In steam assisted gravity drainage (SAGD) in situ oil sands projects, Opsens' sensors help cut production costs and increase output by improving the operator's information about the reservoir.
The company also saw growth from each of its other markets of medical devices, scientific and military laboratory, and high-power transformers. Marketing expenses were $731,000 in the latest year, down from $825,000 a year earlier.
Research and development expenses increased to $699,000 in FY2008 from $591,000 a year earlier. The company focused in FY2008 on improving its product line, and the increased R&D costs came mainly from higher employment levels.
Administrative costs totaled $984,000 in FY2009, compared with $623,000 a year earlier. The increase resulted from the acquisition of its Opsens Solutions unit in Edmonton (previously named Inflo Solutions Inc.) and higher employment levels. The company completed the purchase of Inflo Solutions in December 2007 for 1.2 million shares and $120,000 cash. The acquisition gives the company established design and installation expertise in the oil sands market.
The company is off to a good start in fiscal 2009 with the recent announcement an order from Nexen Inc., as well as the achievement of ISO 9001:2000 accreditation. Opsens expects in 2009 to increase its market share,
given the maturity of its range of products and the strategic positioning established in each of its markets in recent years.