Opsens reports Q3 2010 results with best-ever quarterly revenue

QUEBEC CITY, July 7 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSX-V: OPS) today released its financial results for the three- and nine-month periods ended May 31, 2010.

    
    Highlights

    - Quarterly revenue climbed to $1,469,000
    - Strong growth of 44% for consolidated revenues since the start of
      fiscal year 2010
    - Net loss of $341,000 for the quarter, or $0.01 per share
    - Opsens' OPP-W sensor successfully completed its second year of
      operation in the Steam Assisted Gravity Drainage (SAGD) wells run by an
      oil sands producer in Alberta
    - New orders for the OPP-W and for Opsens' CO2-enhanced oil recovery
      systems.
    

Not only is Opsens receiving repeat orders from its current customers, but more and more oil and gas producers are installing the OPP-W sensor, which allows them to measure pressure and temperature in SAGDs. During the third quarter, the system successfully completed its second year of continuous operation, demonstrating the sensor's long-term performance. Opsens also received a new order for its CO2-enhanced oil recovery systems. In an effort to further enhance its product offering, Opsens launched a new high-temperature fiber optic extensometer for measuring soil displacement and monitoring caprock integrity.

In the medical field, the development of an Opsens proprietary medical instrument is progressing swiftly. Opsens plans to do animal study during the summer of 2010.

Financial results - Three-month period ended May 31, 2010

The Company recorded $1,469,000 in revenues for the three-month period ended May 31, 2010, compared with $1,279,000 for the same period in 2009, a 15% increase. Sales growth for the third quarter was generated primarily through an organic growth of more than $700,000 in the oil and gas industry.

The net loss for the quarter ended May 31, 2010 was $341,000, compared with a loss of $215,000 for the same period ended May 31, 2009. The increase in the net loss is primarily reflective of an increase in research and development and administrative expenses.

R&D expenses rose to $346,000 for the quarter, compared with $216,000 for the same period in 2009. The variance over the three-month period was primarily caused by the increase in sub-contracting expenses, the number of research employees and the material.

Administrative expenses were $386,000 and $262,000 respectively for the three-month periods ended May 31, 2010 and 2009.

Sales and marketing expenses were stable, at $233,000 for the quarter ended May 31, 2010, compared with $232,000 for the same period in 2009.

Financial results - Nine month period ended May 31, 2010

The Company recorded revenue of $3,586,000 for the nine-month period ended May 31, 2010, compared with $2,498,000 for the same period a year earlier, a 44% increase. The upsurge in sales for the third quarter was primarily generated from an organic growth of more than $1,163,000 in the oil and gas industry. The increased revenue from this sector was driven by the escalation of OPP-W sensor deliveries for SAGD wells.

    
                                     ----------------------------------------
    (In thousands of Canadian            Three-    Three-     Nine-     Nine-
     dollars, except data per share)     month     month     month     month
                                        period    period    period    period
                                         ended     ended     ended     ended
                                        May 31,   May 31,   May 31,   May 31,
                                          2010      2009      2010      2009
                                     ----------------------------------------
                                             $         $         $         $
                                     ----------------------------------------

    Sales                                1,469     1,279     3,586     2,498
    Cost of sales                          770       611     2,112     1,497
                                     ----------------------------------------
    Gross margin                           699       668     1,474     1,001
    Administrative expenses                386       262     1,121       893
    Marketing expenses                     233       232       652       669
    Research and development expenses      346       216       819       626
    Stock option based compensation         43        50       145       177
    Amortization of property, plant
     and equipment                          45        43       131       118
    Amortization of intangible assets        5         5        26        17
    Financial expenses (income)            (18)       75         3       (47)
                                     ----------------------------------------
                                         1,040       883     2,897     2,453

    Loss before income taxes              (341)     (215)   (1,423)   (1,452)
    Income taxes                             -         -         -         -
                                     ----------------------------------------
    Net loss                              (341)     (215)   (1,423)   (1,452)
    Basic loss per share                 (0.01)    (0.01)    (0.03)    (0.04)
    Diluted loss per share               (0.01)    (0.01)    (0.03)    (0.04)
    

Grant of stock options

Opsens' Board of Directors also authorized yesterday the grant of a total of 219,750 stock options, of which 110,000 were granted to certain directors and officers and 109,750 to certain employees, as provided in the Opsens' stock option plan adopted by the shareholders on January 19, 2010.

Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe for one Opsens' common share at the latest on July 5, 2015 and at a price equal of $0.36 per share. The stock options granted to the directors entitle the holders to subscribe immediately for Opsens' common share whereas the stock options granted to the employees will be vested over a period of four years at a rate of 25 % per year, the first tranche being vested at the end of the first year following the granting of the stock options.

    
    About Opsens (www.opsens.com)
    -----------------------------
    

Opsens is a leading developer, manufacturer and supplier of a wide range of fiber optic sensors and associated signal conditioners based on proprietary patented and patent pending technologies. Opsens' sensors provide long-term accuracy and reliability in the harshest environments. Opsens provides sensors to measure pressure, temperature, strain and displacement to original equipment manufacturers (OEM) and end-users in the oil and gas, medical, high-power transformers, and laboratory fields. Opsens provides complete technical support, including installation, training, after-sales service, for its fiber optics systems that are regulated by the ISO 9001-2008 norm.

Opsens was recognized as a TSX Venture 50(R) company in 2010. TSX Venture 50 is a trademark of TSX Inc. and is used under license.

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.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Opsens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

For further information: Pierre Carrier, President and Chief Executive Officer, Opsens Inc, [phone]; Louis Laflamme, CA, Chief Financial Officer, Opsens Inc, [phone]