Clemex Discloses First Quarter Results - Increase sales by nearly 40%

    
    Symbol: CXG.A-CDNX
    www.clemex.com
    Shares Outstanding: 20,749,810
    

MONTREAL, Sept. 27 /CNW Telbec/ - Clemex Technologies Inc. (TSX Venture CXG.a), designer and manufacturer of Image Analysis systems and software for microscopy applications, announces its results for the first quarter of FY2011 ending July 31 2010. For this first Quarter, sales reached $1,016,855, an increase of $288,224 or 39.5% compared to the same period last year. The Corporation ends this Quarter with a Net Profit of $52,816 while a Loss of $141,029 had been posted last year. Earnings for this quarter improved, after they had strongly been affected, as markets are slowly reviving from the severe economic slowdown which affected the manufacturing sector in North America. Gross Margin for this first quarter was 62.9%, similar to 63.7% for the same period last year.

Over the past three months, the Company made several sales to the manufacturing sector industries such as: Evraz, Regina(SA); Evraz Rocky Mountain Steel, Pueblo (CA); Brillion Iron Works, Brillion (WI); Dana Canada Corporation, Oakville (On), and Teksid Hierro of Mexico. Important sales were also made to the pharmaceuticals sector, to Hemopharm, Serbia and Pfizer, Kalamazoo.

FINANCIAL HIGHLIGHTS

    
                                                           First Quarter
                                                        (ending July 31st)
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                                  Fiscal Year               2011        2010
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                                                               $           $
    Sales                                              1,016,855     728,631
    Cost of Sales                                        377,322     264,847
    -------------------------------------------------------------------------
    Gross Margin                                         639,533     463,784

    Operating Expenses
      Commercial Expenses                                286,128     238,807
      Administrative Expenses                            171,264     169,017
      R&D less Tax credits                                78,434      83,884
      Amortization of capital assets                      30,058      28,956
      Financial Expenses                                  21,697      22,757
      Loss (gain )on foreign currency                       (864)     61,392
    -------------------------------------------------------------------------
                                                         586,717     604,813

    Net Profit(Loss)                                      52,816    (141,029)

    Net Profit(Loss) per share                             0.003      (0.007)
    

Clement Forget, President and CEO of Clemex Technologies Inc. declared: "Results for this first quarter of FY2011 are very encouraging as we can foresee the light at the end of the tunnel with a revival of activity in our traditional sectors; the automotive and aerospace manufacturing industry. We note activity intensifies lately in our sales department as many quotes and information requests come in, the first indicator that clients are interested in purchasing new instruments. Further more, the pharmaceutical sector seems to also do better as we sold two instruments to prestigious pharmaceutical companies in the United States and in Europe".

He continued, "Our order book is doing better than for the same period last year and we are confident that, unless an economic turn around occurs, the sales should continue to increase over the next few months."

About Clemex Technologies, Inc.

Clemex Technologies Inc. develops, manufactures and markets image analysis systems and software used by quality control and research microscopy laboratories. Clemex's customer base spans over many countries in America, Europe, Asia and encompasses major Research and Development Centers, prestigious Universities and large manufacturing industries in various fields including healthcare, automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.

The CDNX has not reviewed and does not accept responsibility for the adequacy and accuracy of this press release.

For further information: Clément Forget, President and CEO, Tel: [phone], Email: [email protected]