Pure Technologies Ltd. Business Update
By Pure Technologies Ltd, PRNESunday, January 10, 2010
CALGARY, Canada, January 11 - Pure Technologies Ltd., TSX-V: PUR, released the following update on
business activities for 2009, and the outlook for 2010, based on
preliminary unaudited financial results:
- Full-year revenue is expected to be more than 35% greater than the $22.2 million generated in 2008. This has been achieved through growth in all aspects of our business. - EBITDA, excluding foreign exchange losses, is expected to grow by more than 125% over the $1.7 million EBITDA for 2008. - Recurring revenue for the year is expected to be approximately $3.5 million, compared to $2.5 million in 2008. - Gross margin for the year is expected to remain in excess of 60%.
Total confirmed backlog (contracts in place) plus notified contract
awards currently stands at $33.5 million, excluding recurring revenue.
Based on current visibility, we expect to maintain a high rate of revenue
and EBITDA growth through 2010, excluding the impact of any acquisitions
that may be completed during the year.
We have identified the following sectors and regions which we expect
will help to deliver growth in addition to our current markets through 2010
and beyond:
- Leak detection, inspection and condition assessment in the wastewater sector: We expect to generate opportunities as a consequence of increasing regulatory scrutiny, particularly in the US, where the Environmental Protection Agency is implementing Consent Decrees on wastewater agencies as a means of addressing sewer overflows and discharges. The wastewater market is at least as large as the water market, and suffers from a dearth of effective inspection and condition assessment technologies. We will leverage our newly-acquired robotics capability, as well as SmartBall(R) and new in-line inspection tools to be introduced in the near future, to establish a strong presence in this sector. The acquisition of Jason Consultants in late 2009 allows us to add value to our technology offerings in the space, as Openaka has done in the prestressed pipe market. - Mexico and South America: We increased our business development activities significantly in the large-diameter pipe market in these regions in 2009, and we expect this investment to result in an increase in commercial activity in the near term. - Middle East: The establishment of our Abu Dhabi office will allow us to pursue and service business in the Middle East region, where there is an increasing awareness of the need to conserve water resources. We are currently in the process of planning a number of SmartBall(R) demonstration projects, and we are also pursuing large-diameter pipeline management opportunities. We expect the region to generate meaningful revenue in 2010. - East Asia: Through our Chinese partner, Nanjing Hydraulic Research Institute, we have identified several high-value opportunities for pipeline inspection and monitoring. We are in the process of establishing an office in Hong Kong in partnership with a local company to service these opportunities and to grow our general inspection and monitoring business in Hong Kong, Macau, China and Taiwan.
While our cash reserves will be reduced in the short term in order to
service our growing backlog, we expect our working capital position to
strengthen considerably as the year progresses. We plan to maintain our
commitment to investment in research and development and in international
business development, and we continue to pursue opportunities for
acquisitions.
ABOUT PURE TECHNOLOGIES LTD.
Pure Technologies Ltd. is an international technology and services
company which has developed patented technologies for inspection,
monitoring and management of critical infrastructure around the world. Pure
operates from its headquarters in Calgary, Canada and through subsidiaries
in Maryland, New Jersey, and the UK. Pure's proprietary product portfolio
includes SoundPrint(R), a continuous acoustic structural monitoring system
for buildings, bridges and structures; SoundPrint(R) AFO, a fiber-optic
distributed acoustic sensing system for monitoring and surveillance of
pipelines; and SmartBall(R), a revolutionary new leak detection technology
for water, wastewater and hydrocarbon pipelines.
Forward-Looking Statements
This release contains forward-looking statements. Forward-looking
statements, without limitation, may contain the words believes, expects,
anticipates, estimates, intends, plans, or similar expressions. Forward-
looking statements are not guarantees of future performance. They involve
risks, uncertainties and assumptions and the Company's actual results could
differ materially from those anticipated. Forward looking statements are
based on the opinions and estimates of Management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results
to differ materially from those projected in the forward-looking statements
. In the context of any forward-looking information please refer to risk
factors detailed in, as well as other information contained in, the
Company's filings with Securities Regulators (www.sedar.com).
(R) Registered Trademarks, property of Pure Technologies Ltd.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release"
For further information: To find out more about Pure Technologies Ltd.
(TSX-V: PUR), visit our website at www.puretechnologiesltd.com;
contact James E. Paulson, Chairman or Karen Keebler, Chief Financial
Officer at +1-(403)-266-6794; or e-mail to: info@puretechnologiesltd.com
For further information: To find out more about Pure Technologies Ltd. (TSX-V: PUR), visit our website at www.puretechnologiesltd.com; contact James E. Paulson, Chairman or Karen Keebler, Chief Financial Officer at +1-(403)-266-6794; or e-mail to: info at puretechnologiesltd.com