Smartcool First Quarter Revenues Increase 49% Over 2010

VANCOUVER, July 6, 2011 /CNW/ - July 6, 2011, [ Smartcool Systems Inc. ] (TSX-V: SSC) announced its results for the first quarter of 2011, showing revenue of $943,958, an increase of $309,031 or 49%, compared to $634,927 for the first quarter of 2010.

"We anticipate a major surge in revenues from direct sales during the months ahead as our newly acquired UK team carries out a number of roll-outs to major customers such as Sainsbury's in Europe," stated George Burnes, President and CEO of Smartcool. "Our first quarter results reflect the adjustment period that we underwent in acquiring Smartcool UK. Our anticipated results for the remainder of 2011 will demonstrate the benefits of the acquisition, as we complete more highly profitable direct sales to major customers than ever before in our company's history. Thanks to these efforts, we expect to achieve profitability by the third quarter of 2011."

Highlights:

Gross profit for the quarter was $686,681 compared to $339,360 for the same quarter of the previous year.
Smartcool's distribution network maintained its significant growth pace, reaching $674,471 and contributing to 71% of the quarter's total revenue.
The Company had $1,515,348 in cash and cash equivalents at the end of the quarter, compared to $323,241 in cash and cash equivalent at the end of the first quarter of 2010.
General and administrative expenses increased to $893,249 from $710,304 for the same quarter of 2010 due to the acquisition of Smartcool UK. Adjusting for this newly acquired subsidiary's expenses, the quarter's general and administrative expense total was $752,984, increasing by $42,680 or 6% from the first quarter of 2010 while there was an increase of 49% in revenue.
Net loss for the quarter was $578,824, a decrease of $172,933 from $751,757 for the same quarter of the prior year, due to revenue growth. The loss per share (basic and diluted) for the first quarter was $0.01, compared to $0.02 for the same quarter of 2010.
The acquisition of Smartcool UK increased intangible assets by $3,768,164 bringing Smartcool's total assets to $10,771,424 while current liabilities increased by $1,478,936 due to the acquisition.

As of March 31, 2011 the company had 60,154,726 common shares outstanding. The detailed financial statements can be found at [ www.sedar.com ] and on [ Smartcool's website ].

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ESM™ and ECO³™ are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems, with no risk to existing equipment performance. [ www.smartcool.net ]

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Smartcool First Quarter Revenues Increase 49% Over 2010