Opsens Exits '08 with Order to Optimize Nexen's Long Lake Wells
Opsens Inc. has reported its results for the first quarter ended November 30, 2008.
- Order from Nexen Inc. to install its proprietary OPP-W optical sensor systems in three Long Lake well pairs.
- Revenue rose to $612,000 in the first quarter, compared with $569,000 a year earlier.
- Net loss was $555,000 or 1 cent a share, compared with a loss of $347,000 or 1 cent a share a year earlier.
- Received ISO 9001:2000 accreditation.
"We concentrated in the first quarter on preparing our operations for growth expected in coming quarters," said Pierre Carrier, president and chief executive. "Specifically, we expanded our manufacturing facilities in Quebec, temporarily affecting production. In Edmonton, we hired more staff in anticipation of increased activity at our Opsens Solutions oil and gas unit this winter."
The quarter was also characterized by progress in its oil and gas operations, including a November contract from Nexen Inc. to equip three wells at its Long Lake joint-venture project with Opsens' OPP-W sensors. The sensors provide continuous measurement of pressure and temperature at high temperatures in steam-assisted gravity drainage (SAGD) oil wells. While some of the income from that order has been recorded, most of that contract will be recognized in coming quarters.
"The Nexen order demonstrates the interest from a second major oil sands producer and growing acceptance of our technology as a means to optimize production in SAGD wells," Mr. Carrier said.
Revenue rose to $612,000 in the latest quarter from $569,000 a year earlier. Sales to the laboratory market were the largest contributors to revenue in both periods.
Administrative expenses were $314,000 for the quarter ended November 30, 2008, compared with $202,000 a year earlier. Those expenses increased with the acquisition of the Opsens Solutions unit in December 2007 and higher employment levels. The company expects administrative expenses should remain at levels similar to the first quarter in subsequent quarters.
R&D expenses increased to $205,000 from $163,000 a year earlier, mainly due to higher employment levels and purchases of research supplies. Marketing expenses were $194,000 in the first quarter of 2009, little changed from $195,000 a year earlier.
The company had $3.4 million in cash at the end of the first quarter.
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