Seprotech announces third quarter fiscal 2012 results and operational update

    




 OTTAWA, June 22, 2012 /CNW/ -   Seprotech Systems Incorporated  ("Seprotech" or the  "Company") announces the following unaudited results for the three and  nine months ended May 31, 2012 with comparative unaudited results for  the equivalent periods in fiscal 2011. 

  





                   Three Months Ended   NineMonthsEnded
                         May 31             May 31

                    2012       2011      2012     2011

                    $000       $000      $000     $000

    Revenue        2,746        678     5,347    2,197

    Gross Margin     669        159     1,323     583

    Net Loss        (76)      (505)     (569)  (1,088)

    Loss per share (0.00)    (0.01)     (0.01)  (0.01)






   

 Third quarter 2012 revenues continued to grow as compared with both the  preceding quarter and the same quarter in 2011.  Margins are beginning  to recover, and with the exception of margins on water and wastewater  systems, are returning to historical levels or better. There was strong  revenue growth from each sector of operations. 

 Operating costs were significantly higher than for both the prior  quarter and the equivalent period in 2011, which largely reflected  incremental hiring costs as required to execute new business, as well  as travel costs arising from business development activities. 

 The net loss of $76,332 in the quarter and a net loss of $569,296 in the  nine months is a significant improvement over the comparable periods in  2011, with the Company now operating at close to break-even. 

 "These numbers reflect continued improvement in both our sales efforts  and getting our product out the door," said Harry Marshall, President  and CEO. "We see this trend continuing as we execute on our plan --  fulfilling current orders and building future sales opportunities. Our  new team is focused on this growth strategy to regain profitability." 

 The Company also announced during the quarter that it had entered into a  non-binding letter of intent to acquire 100% of privately held WESA in  a reverse takeover (the "Transaction"). Upon completion of the  Transaction, the combined entity (the "Resulting Issuer") is expected  to be a leading provider of earth sciences expertise, water resources  and environmental engineering services, and wastewater/water treatment  systems. The intent is to build an integrated product and service  organization that provides intelligent solutions to complex  environmental problems both in Canada and abroad. The merger is subject  to shareholder and regulatory approvals, including the approval of the  TSX Venture Exchange, and is targeted to close by the end of August,  2012. 

 About Seprotech: 

 Seprotech is a provider of pre-engineered water and wastewater treatment  solutions to the municipal/land development, resource sector, and  military market place.  Products include Reverse Osmosis water  purification systems, ROTORDISK® biological sewage treatment package  plants and CrystalBlue™ membrane-based water recycling systems. 

 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.  The TSX Venture Exchange has neither approved nor disapproved of the  information contained herein. Some of the statements in this press  release, including those relating to the Company's strategies and other  statements that are predictive in nature, that depend upon or refer to  future events or conditions, or that include words such as "expects",  "anticipates", "intends", "plans", "believes", "estimates" or similar  expressions, are forward-looking statements within the meaning of  securities laws. Forward-looking statements include, without  limitation, the information concerning possible or assumed future  results of operations of the Company. These statements are not  historical facts but instead represent only the Company's expectations,  estimates and projections regarding future events. The Company does not  undertake any obligation to update or release any revisions to these  forward-looking statements to reflect events or circumstances after the  date of this presentation or to reflect the occurrence of unanticipated  events, except as required by law. 

Seprotech Systems Incorporated


CONTACT:  Mr. Ian W. Malone, CFOTel: [phone]Fax: [phone] 


    

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