Lorex announces Q3 2010 results

TORONTO, Aug. 20 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company") (NEX: LOX.H) announces results* for the three and nine months ended June 30, 2010.

Highlights of the three and nine month operating results are as follows:

    
    (Thousands of US $, unless otherwise noted)
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                                Three months ended       Nine months ended
                                      June 30                 June 30
                             ------------------------------------------------
                                 2010        2009        2010        2009
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    Revenue                       13,661      12,796      33,502      35,012
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    Earnings before interest,
     taxes, amortization (xx)      1,390         528       2,078       1,010
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    Earnings before income
     taxes                         1,261         188       1,567         201
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    Earnings                       1,142         127       1,315         140
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    Earnings per common
     share, basic                  $0.04       $0.00       $0.04       $0.01
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    Earnings per common
     share, diluted                $0.03       $0.00       $0.03       $0.01
    -------------------------------------------------------------------------
    Weighted average number
     of shares -basic         31,290,278  26,954,083  31,179,094  26,954,083
    -------------------------------------------------------------------------
    Weighted average number
     of shares - diluted      43,790,278  26,954,083  43,679,094  26,954,083
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    *    Unaudited financial information is available at www.sedar.com.
    (xx) EBITDA is not a measure of performance under Canadian GAAP. EBITDA
         should not be considered in isolation or as a substitute for profit
         nor as a measure of operating performance or profitability.
    

Commenting on the results for the three and nine months ended June 30th, Chairman and CEO Reuben Klein stated, "With Q3 profit of $1.1 million, our year to date total is up to $1.3 million, which is $1.2 million ahead of last year to date. The increase in earnings reflects a higher margin and reductions in fixed overhead costs.

In the third quarter we introduced next generation product to a major customer which, along with growth in our Digimerge brand and inhouse web store business, contributed to an increase in year over year third quarter sales. For the year to date, revenue has declined by $1.5 million reflecting a later shipment in the current year of next generation product to a major customer.

While we expect continued growth in demand for video security products by small business and home owners, we also expect average selling prices to decline from competitive pressure and production economies of scale. We believe that there is significant market demand at lower price ranges and we are currently developing more product options for lower price points. To take advantage of this opportunity, we recently launched a new line of plug and play product called "LOREX LIVE" and we expect to introduce the first LOREX LIVE model, the "LIVE snap" baby monitor in the fourth quarter of this year."

About LOREX Technology Inc.:

LOREX Technology Inc. ('LOREX') (NEX:LOX.H) provides businesses and consumers with leading edge video surveillance security solutions and sells its products under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in thousands of retail locations across North America. The Digimerge division distributes its products through major distributors in North America. Both brands concentrate on the sale of wired, wireless and IP security surveillance equipment including cameras, digital video recorders and all-in-one systems.

LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.

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

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues of the Company and the success of product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Company.

For further information: Jordan Schwartz, Chief Financial Officer, LOREX Technology Inc., Phone: [phone] ext 168, [email protected], www.lorextechnology.com