• Clemex announces its Financial Results for 2015 And Corporate Update

    21/08/2015 12:00:00 AM

    Montreal, QC – August 20th, 2015-- Clemex Technologies Inc. (TSXV: CXG.A) (“Clemex” or the “Corporation”) announces its financial results for Fiscal Year ending April 30th, 2015. The Corporation ends this Fiscal Year with total sales of $6,359,657 compared also to $6,159,655 in 2014. Gross margin improved this fiscal year when compared to last but higher commercial and administrative expenses affected the EBITDA and the net result attributable to the owners of Clemex which ended at $13,791 compared to $103,797 in 2014.

    FINANCIAL HIGHLIGHTS

    Fiscal year ended

     April 30th, 2015

    April 30th, 2014

           

           $

            $

    Sales                                                                                     

        6,359,657

       6,159,655

     

     

     

    Gross Margin                                                                        

      3,590,575

      3,399,178


    EBITDA
     


    319,664
     


    387,814
     

    Net Earnings attributable to owners of Clemex Technologies 

        13,791

        103,797

         

    Earnings  per share                                                               

           -      

           0,003


    Note: This is only financial highlights. All financial documents for the year ending April 30, 2015 are available on SEDAR at www.sedar.com and on the website of Clemex Technologies Inc at www.clemex.com.

    Sales grew slightly in North America in the latest fiscal year, as sales in Canada compensated for the sales decline in the United States. In Canada, sales rose from $1,194,096 in 2014 to $1,662,463 in 2015. In contrast, sales in the United States saw a slight 6.4% decline, going from $3,124,250 in 2014 to $2,925,853 in 2015. Sales south of the border accounted for 46.0% of the Corporation’s revenues in 2015, compared to 50.7% in 2014. 

    International sales fell 3.8% to stand at $1,771,341 in 2015 compared to $1,841,309 the previous year. Sales in Europe decreased sharply to $415,216 in 2015, down from $921,294 in 2014. Despite the presence of a subsidiary in Europe enabling the Corporation to stay close with its clients there, the economic slowdown in the euro zone had an adverse impact on sales growth in that market. Elsewhere in the world, overall sales rose slightly in the latest fiscal year. Asian sales stood at $280,134 in 2015, up from $258,226 in 2014. Meanwhile, sales in India climbed to $608,143 in 2015, compared to $171,282 a year earlier. In the other countries, sales declined slightly to $467,848 in 2015 from $490,507 in 2014.

    The gross profit margin climbed to 56.5% against 55.2% in 2014. This improvement reflects higher sales related to software and equipment updates together with lower sales of Leica products, which have lower margins.

    Again in the latest fiscal year, there were numerous promotional activities for medical instruments such as trade shows, advertising and campaigns. Administrative expenses grew to $1,050,594 in 2015 compared to $886,001 in 2014; a rise due mainly to the payment of non-recurring professional fees and the rise in R&D expenses from $715,865 in 2014 to $797,831 in 2015 are due mainly to the hiring of specialized computer programming staff for development of new products.

    The EBITDA declined given the higher operating expenses compared to the previous year which ultimately affected the net result for the year that ended in $ 13,791 in 2015 compared to $ 103,797 for fiscal year 2014.

    Corporate update

    Yves Bassat, who has been acting as President and CEO on an interim basis since December 2014, has been confirmed as permanent President and CEO by the board of directors of the Corporation.

    Mr. Bassat commented: “The last twelve months have been a challenging period for Clemex, marked by fundamental changes, and a reassessment of several aspects of the business, rendered necessary by the lack of progression. Since taking over as President and CEO, my main goal has been to redefine the business strategy to insure we retain our competitive edge, evolve with our client, and create a stimulating environment for our employees as well as tangible value for our shareholders. I’m pleased by the vote of confidence, which will now allow me to pursue the implementation of our new strategy with the full support of the board and a feeling of renewed enthusiasm within the organization.”

    The Corporation also announces that it has appointed, in accordance with regulatory requirements, Demers Beaulne LLP, Chartered Accountants (“DB”), as auditors of the Corporation for the Fiscal Year ending April 30th, 2016.

    Accordingly, the Corporation has requested the resignation of the former auditors, Raymond Chabot Grant Thornton LLP, Chartered Accountants (“RCGT”), as auditor of the Corporation, and thanks them for their past professional service and support. There were no reservations in RCGT’s reports for the two most recently completed Fiscal Years or for any period subsequent to the most recently completed period for which an audit report was issued preceding the date of RCGT’s resignation. There were also no reportable events between the Corporation and RCGT or between the Corporation and DB.

    The audit committee and board of directors of the Corporation have approved the appointment of Demers Beaulne LLP as successor auditor. In accordance with NI 51-102, a reporting package will be filed on SEDAR and will be included in the management materials sent to shareholders for the next annual general meeting of the Corporation.

    Caution Concerning Forward-Looking Statements
    This press release contains forward-looking statements that are based on certain assumptions. The forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Company cautions investors not to place undue reliance on forward-looking statements. Additional factors are discussed in materials filed with the Securities regulatory authorities in Canada. 

    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 the globe and encompasses prestigious Universities and Research Centers in many scientific domains, large and medium size manufacturing facilities in numerous industries including automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.