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Roctest reports an increase of its sales and net profit for first quarter 2009

^{Published on 2009-05-08 08:17:50, Last Modified on 2009-11-02 11:34:56 - Market Wire}
 

 ST-LAMBERT, QC, May 8 /CNW/ - Roctest Ltd ("Roctest") (TSX: RTT), a leading designer and manufacturer of high-precision sensors for the civil engineering market and applications in the energy, healthcare and process control industries, today announced its operational and financial results for the three-month period ended March 27th 2009. All results are reported in Canadian dollars. "We are very pleased with first quarter results which reflect continuing solid revenue growth in this, one of the seasonally weakest quarter of the year," said François Cordeau, President and CEO, Roctest. "Revenue growth was particularly strong in the industrial sector reflecting in part record orders for fiber optic sensors and the launch and delivery of a new smaller signal conditioner to a long-term OEM partner specialising in the production of microwave laboratory instruments. First quarter revenue from civil engineering activities also continued to grow steadily, while orders for new projects, including an important contract in Vietnam and several others in the Middle East, were particularly strong, totalling about $4 million for the quarter," he added. Financial Results For the first quarter ended March 27 2009, revenue increased 13.4% to $5.79 million, compared to $5.11 million in the same quarter of 2008. The increase was mainly attributable to a 34.6% increase in sales for the industrial sector and a 5.2% increase in the civil engineering sector. Gross margin increased to 40.0% during the first quarter compared to 37.2% for the comparable period last year. This increase is mainly due to higher volume in both the civil engineering and industrial sectors. Sales and Administration ("S&A") totalled $1.57 million or 27.2% of sales, compared to $1.42 million or 27.8% of sales for the first quarter of 2008. The increase of $0.15 million was mainly due to increased marketing costs and personnel hiring activities. For the first quarter of 2009, earnings before interest, taxes, depreciation and amortization ("EBITDA") amounted to $419,572, compared to $231,481 in the same period in 2008. Net earnings were $0.15 million or $0.03 per share, compared to a net loss of $0.1 million or ($0.02) per share in the same period in 2008. Liquidity and Capital Resources On March 27, 2009, cash, cash equivalents and temporary investments, net of cash advances, were $1.15 million, compared to $1.45 million at the end of the first quarter of 2008. The decrease was mainly due to the use of additional cash to support the increase in accounts receivable and inventories associated with the growth in sales, partly offset by improved net income. Roctest's working capital increased by more than $100,000 to $4.97 million at March 27th 2009 compared to $4.86 million on December 26, 2008. During the first quarter, the Company entered into a refinancing arrangement for $1.85 million with the Business Development Bank of Canada ("BDC"). Proceeds have been used to reimburse outstanding loans with Roctest's previous banker. An additional $300,000 from BDC has been received following the end of the first quarter and will be used for additional working capital to grow sales volume. The refinancing arrangement is also expected to positively impact cash flow from operating activities by at least one million dollars over the next 12 months due to improved payment terms, the effect of which will start to be reflected in the second quarter 2009 financial statements. As at May 8th, 2009, the Company had 5,563,071 common shares outstanding. Outlook With a profitable first quarter and the benefit of a strong order book at the end of the quarter, management remains confident that, despite continuing difficult global economic conditions, Roctest will deliver both revenue and profit growth in 2009. Further information relating to Roctest's 1st quarter 2009 operating results and financial results may be found on the Company's website at [ www.roctest.com ] and on SEDAR ([ www.sedar.com ]). About Roctest Ltd Roctest designs, manufactures and markets sensors and high-precision measuring instruments for the civil engineering market and applications in the energy, healthcare and process control industries. The Company is recognized for its leading-edge technology, the quality of its technical expertise and its product development capabilities for challenging and demanding environments. Its products are mainly sold internationally. The shares of the Company are listed on the Toronto Stock Exchange under the symbol RTT. To reach Roctest Ltd via the worldwide web log on to [ www.roctest.com ]. Caution concerning forward-looking statements Except for historical information provided herein, this press release may contain information and statements of a forward looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events, and as such involve a number of risk factors. Such factors may include, without excluding other considerations, risks related to foreign exchange fluctuations, evolution in customer demand for the Company's products and services, the impact of price pressure from competitors and general market trends, as well as economic and geopolitical changes. As a result, readers are advised that actual results may differ from expected results. The Company does not update or revise publicly its forward-looking statements, except as may be required under applicable law. %SEDAR: 00002564EF 

For further information: François Cordeau, President and Chief Executive Officer, Roctest Ltd., (450) 465-1113, (450) 465-1938 fax, Email: [ info@roctest.com ]; Jeremy Mackenzie Lee, Investor Relations, The Equicom Group Inc., (514) 788-2434, (514) 788-2435 fax, Email: [ jmackenzielee@equicomgroup.com ]