SENSIO Presents its 2011-2012 Financial Results

SENSIO Presents its 2011-2012 Financial Results 
A fiscal year marked by the achievement of significant milestones and
higher revenues from the Consumer Electronics market 
MONTREAL, CANADA -- (Marketwire) -- 09/28/12 -- SENSIO Technologies
Inc. ("SENSIO"/ "the Company") (TSX VENTURE:SIO) today presented its
financial results for the fiscal year ending May 31, 2012. During
this period, Company revenues dipped slightly from $1.25M to $1.13M,
while the losses decreased from $4.59M last year to $4.33M for this
fiscal year end. While SENSIO's total income experienced a slight
decrease, its revenues from the Consumer Electronics market rose
significantly from $78,766 to $901,512, a new record for the company.
This increase is attributable to the growth in product sales to
existing clients as well as the addition of new clients such as
Samsung for the patent agreement on our SENSIO(R) S2D Switch
technology. The fiscal year was marked by the achievement of
impressive milestones and the conclusion of major agreements that
demonstrate the progress of SENSIO in achieving its goal of becoming
the world leader in stereoscopic image-processing technologies. 
"The 2011-2012 fiscal year saw a lot of media gloom and pessimism
toward the future of 3D," said Nicholas Routhier SENSIO's President
and CEO. "However, there were never so many movies in 3D made, never
so many 3D televisions sold, never so many consumers experiencing 3D,
as today. After an inevitable period of adjustment with the launch of
a new technology, the industry is now ready for a new development of
3D at home. With our portfolio of technologies and patents, our
integration strategy with chip manufacturers and our new service
3DGO! which will be available this fall, SENSIO is now in an
exceptional strategic position that will enable us to take advantage
of the anticipated continued growth. The signing of integration
agreements with two major manufacturers for our SENSIO(R) Hi-Fi 3D
technology and the confirmation of agreements for content for 3DGO!
following the 2011-2012 fiscal year end are concrete examples of this
strategic position. SENSIO currently enjoys significant momentum in
the market and we are excited to increase this momentum throughout
the next fiscal year." 
Highlights of the Fiscal Year Ended May 31, 2012 
- Significant increase in revenues, up 1,045% from the Consumer
Electronics market compared to the previous year;   
- First patent license agreement exclusively for SENSIO(R) S2D Switch
technology with Samsung Electronics co Ltd ;  
- Major success in China already underway with the planned
integration of SENSIO(R) Hi-Fi 3D technology in TCL 3D TVs continued
during the current fiscal year with the confirmation of integration
of SENSIO(R) Hi-Fi 3D technology in TCL 3D TVs and an agreement with
a second Chinese manufacturer, Hisense;  
- Continuing of the integration on chip strategy: Marvell Technology
Group Ltd. added to the list of manufacturers that have integrated
SENSIO(R) Hi-Fi 3D technology in their products for 3D TVs;  
- SENSIO announced the creation of a dedicated 3D video-on-demand
service, 3DGO!, within the framework of its content strategy;  
- Successful first live-3D distribution of the last three games of
the NBA Finals in Europe, generating SENSIO's first revenues from its
content-distribution activity in the Live 3D market;  
- Alliance with Sequence SDP to present a series of live 3D concerts. 
"Live 3D" Market - A change in strategy to focus on series of events 
Activities in the Live 3D market generated total revenues of $142,514
for the 2011-2012 fiscal year, compared to $1,034,890 in 2010-2011, a
decrease of $892,376. This significant decrease is mainly due to two
factors: the decrease in the number of Live 3D events in theaters and
changes in the methods of charging for access to the SENSIO(R) Hi-Fi
3D technology in theaters. Despite a good start with the success of
the presentation of the NBA Finals in June 2011 (with a record
occupancy rate of 86% for the last game), the rest of the year was
marked by contingencies beyond the control of SENSIO such as the
cancellation of live 3D broadcast of Rugby World Cup and the NBA
lockout with whom SENSIO had presented the last two NBA All-Star
weekends. Partly in response to these incidents and to meet the needs
of its customers, SENSIO has developed a new strategy based on the
presentation of series of cultural or sports events instead of
focusing on single events. The signing of an agreement with Sequence
SDP is the first concrete manifestation of this new focus, which will
allow SENSIO to diversify its content and generate more recurring
On the technology side, SENSIO has changed its business model by
modifying its pricing method, shifting from a single payment (at the
license activation) to gradual payments per event presented. This
change was made in order to encourage the continued deployment of its
technology in movie theaters while SENSIO proceeds with its efforts
to develop series of events. . With this strategy, the network of
theaters enabled to present events in SENSIO(R) Hi-Fi 3D rose from
842 to 1048 theaters, a growth of 19.6%. SENSIO still considers
increasing the number of cinemas in the SENSIO(R) Live 3D network in
the United States and Asia a priority which it will consistently
"Although we were not able to get the desired results during the past
year, we are more determined than ever to leverage our leading
position in this market," said Richard LaBerge, Executive
Vice-President and Chief Marketing Officer. "We are continuing our
work with suppliers to increase the presence of our technologies in
the digital cinema network, as demonstrated by our agreement with
Christie Digital for the integration of the SENSIO(R) Hi-Fi 3D
technology in their new digital processor, SKA-3D. In addition to the
agreement with Sequence announced during the 2011-2012 fiscal year,
the agreement concluded with Front Row Networks at the beginning of
the current fiscal year confirms our desire to focus on series of
events of a cultural nature. With the experience gained in recent
years and the introduction of our new event strategy, we are
confident of repeating the many successes that we have seen in the
past year on this market." 
The market for Consumer Electronics - Revenue growth and significant
For the fiscal year ending May 31, 2012, activities in the Consumer
Electronics market generated revenues of $901,512 compared to $78,766
a year earlier, an increase of $822,746 or 1,045%. During this fiscal
year, the Company continued its expansion strategy in this market,
reaching several milestones. First, SENSIO signed a letter of intent
with Chinese manufacturer TCL to integrate SENSIO(R) Hi-Fi 3D
technology in their 3DTVs. Shortly after the end of the fiscal year,
this letter evolved into a licence agreement, and TCL became the
second major manufacturer to adopt SENSIO(R) Hi-Fi 3D after Vizio.
SENSIO also continued to develop its integration-on-chip strategy,
adding Marvell to its list of manufacturers, and continued its
efforts to promote SENSIO(R) Autodetect with manufacturers. SENSIO(R)
Autodetect is designed to automatically detect, with superior
reliability and without the need for end-user intervention, all the
most commonly-used frame-compatible stereo 3D video formats (HDMI
1.4a): SENSIO(R)  Hi-Fi 3D, side-by-side, top-and-bottom, or a 2D
In addition, SENSIO has signed one of the most important agreements
in its history by completing a patent license on the SENSIO(R) S2D
Switch with the world leader Samsung Electronics, an agreement which
demonstrates the Company's ability to generate income on the basis of
its patents. As of May 31, 2012, SENSIO's patent portfolio had 8
active patents and 39 patents pending in over 15 different patent
families. Similarly, in order to enhance and increase the demand for
its SENSIO(R) Hi-Fi 3D, the Company continued the development of its
video-on-demand service, 3DGO!, announced at CES in January and whose
launch is planned this fall. 
"Once again during the past fiscal year, our strategy to integrate
SENSIO(R) Hi-Fi 3D on chips for the Consumer Electronics market has
demonstrated its effectiveness in drastically reducing the length of
the sales cycle and facilitating the conclusion of agreements with
TCL and Hisense at the beginning of this fiscal year," said Nicholas
Routhier. "With the conclusion of these two agreements, we have
reached a crucial stage in our development strategy in China, one of
SENSIO's two priority territories along with the United States. In
addition, our content strategy, which will materialize shortly with
the launch of 3DGO!, also played an incentivizing role in the
conclusion of these agreements. Our content offerings address a real
market need and are more substantial, as demonstrated by our
agreements with three movie studios: Starz Digital Media, National
Geographic, and Big Picture Digital Productions. Finally, we strongly
believe in the intrinsic value of our patents. Protecting them is
very important to us and we put a lot of effort into doing so. The
agreement with Samsung for SENSIO(R) S2D Switch is an extraordinary
achievement and confirms the relevance of our patent licensing
strategy on which we have been working for several years now. " 
Summary of Financial Results 
For the fiscal year ending May 31, 2012, SENSIO's revenues amounted
to $1,130,541, compared to $1,253,267 in 2011, a decrease of
$122,726, or 9.8%. The year to year decrease is primary due to the
lack of major live 3D event broadcasts. 
For the fiscal year ending May 31, 2012, SENSIO's gross profit margin
was $1,016,547 (89.9% of revenues), compared to $1,225,538 (97.8% of
revenues) for 2011.  
For the fiscal year ending May 31, 2012, sales and marketing expenses
amounted to $2,833,000, compared to $3,118,057 the previous year, a
decrease of $285,057 or 9.1%. The decrease is primarily due to the
Company's completion in the current year of non-recurring marketing
initiatives (new company image, promotional material and trade shows,
for example) started in the previous year to support Live 3D event
distribution. This offsets the increased expenses related to the
addition of staff, product development efforts, and the hiring of
external consultants specializing in business development in the U.S
and Asia. 
For the fiscal year ending May 31, 2012, research and development
expenses totalled $803,863 compared to $1,010,089 for the previous
year. This decrease of $206,226 or 20.4% essentially comes from
non-recurring expenses related to research and development projects. 
Administration expenses amounted to $1,620,062 for the fiscal year
ending May, 31, 2012 compared to $1,750,151 the previous year, a
decrease of $130,089 or 7.4%. This variance is mainly attributable to
an increase of $82,961 related to depreciation of assets, a $62,500
impairment of the Advances on royalties, a decrease in salary and
share based compensation and a decrease in legal fees. 

Selected Financial information                                              
                                               As at and for the year ended 
                                        May 31,       May 31,       May 31, 
                                           2012          2011       2010(1) 
Statements of Comprehensive Loss              $             $             $ 
Revenues                              1,130,541     1,253,267       693,368 
Gross profit                          1,016,547     1,225,538       535,967 
Net loss and comprehensive loss      (4,334,874)   (4,590,830)   (3,174,454)
Basic and diluted loss per share          (0.08)        (0.09)        (0.07)
Statements of Financial Position                                            
Total assets                          4,610,672     8,582,177    11,931,358 
Non-current financial                                                       
 liabilities(2)                             Nil           Nil           Nil 
Dividends declared                          Nil           Nil           Nil 
(1)  Prepared in accordance with Canadian GAAP.                             
(2)  Non-current financial liabilities exclude deferred revenue and lease   
     inducement of $505,965 in 2012 ($73,240 in 2011 and $48,440 in 2010)   

For more details, please see the Management Discussion and Analysis
and the Financial Statements for the reference quarter on the SENSIO
About SENSIO Technologies Inc. (SENSIO):  
Founded in 1999, SENSIO Technologies Inc. ( is a
pioneer in the 3D industry. Its vision, expertise and
state-of-the-art solutions, based on diversified stereoscopic
image-processing technologies, have been trusted by some of the
biggest names in the broadcasting and consumer electronics sectors,
as well as for live 3D events in cinemas, to power numerous industry
firsts, initiate new business models and generate immediate revenue
with a distinctive 3D offering. 
SENSIO enables its clients to deliver the best possible 3D experience
for the end-user through a broad portfolio of licensed products,
based on quality, content, usability and compatibility. These include
its flagship, award-winning technology, SENSIO(R) Hi-Fi 3D, the
premium-quality frame-compatible format. 
SENSIO's technologies are the object of patents and intellectual
property protection proceedings worldwide. SENSIO is listed on the
Toronto TSX Venture Exchange (SIO). 
SENSIO(R) is a registered trademark of SENSIO Technologies Inc. 
This news release contains forward-looking statements that reflect
the company's expectations with regard to future events. Actual
events could differ significantly from those anticipated in this
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. 
Investor relations
Advent Management Inc.
Sylvain Archambault
Strategic Advisor, Capital Markets
+1 866 703-4887 
SENSIO Technologies
Eric Choquette
Chief Financial Officer
+1 514 846-2022 x17
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