VOTI Detection Reports Fiscal 2020 Year End Results

By Benzinga6 days ago

Resilience & Resolve Pay Off – Emerging From 2020 Stronger & Better Positioned For Success

  • Following significant strategic initiatives taken in FY20, Company emerging as a leaner, more efficient organization
  • Company set to benefit from technological innovation with introduction of next generation MATRIX Series line of X-Ray scanners resulting in a new revenue stream with higher margins
  • Company ends year with improved cash position through capital injections from shareholders, the leveraging of available government programs, and the cutting of operating costs
  • Forecasting return to pre-pandemic annual sales level and gross margins
  • Despite significant headwinds and the related negative impact of the global COVID-19 pandemic, company achieved revenue of $19 million for FY20 compared with revenue of $28.4 million for our fiscal year ended October 31, 2019 (“FY19“)
  • Achieved gross margin* of 30% for the year
  • Company delivered 526 security scanning system units to a wide range of global clients across a diversified base of sectors

MONTREAL, Feb. 23, 2021 /CNW Telbec/ - VOTI Detection Inc. (“VOTI“, “the Company“, “we“ or “our“) (TSXV:VOTI), a leading-edge Canadian technology company that develops latest-generation X-ray security systems based on 3D Perspective™ technology, today announced results for its fourth quarter and full year ended October 31, 2020 (“FY20“).

“Fiscal year 2020 was a very difficult year for our Company,“ commented Rory Olson, President and CEO of VOTI Detection. “We operated under unforeseen and extremely challenging circumstances brought about by the ongoing COVID-19 crisis and the resulting slowdown in the global economy. While our full year results reflect these circumstances, our fourth quarter results of FY20 finally pointed to the light at the end of the tunnel coming in at $4.8 million vs. $3.8 million posted in the third quarter of FY20. Moreover, we are forecasting revenue of $6.3 million for the first quarter of fiscal 2021 (“FY21“), surpassing the pre-pandemic revenue reported in the first quarter of FY20 of $6.0 million. These expected results illustrate that the trajectory of improvement as well as the momentum is continuing into the new fiscal year. In addition, through a focused objective of shoring up our cash position, I am very pleased to report that we ended the year with a significant improvement in our cash position through capital injections from shareholders, the leveraging of available government programs and the cutting of operating costs. I could not be prouder of the VOTI team, exhibiting tremendous resolve and proving our ability to move forward and come out even stronger.“

Added Olson, “We believe that the initiatives that we have taken, particularly on the cost cutting front, along with the solid foundation that has been laid, our backlog and our leading technology, places us in a position to significantly grow our operations on a global basis over the coming years. More importantly, we believe that our latest estimates back up our improved outlook. Looking to the current fiscal year underway, starting with our first quarter results of FY21 and extending through the full 12 month period, we are forecasting a return to pre-pandemic levels both in sales and gross margins which we expect should result in positive Adjusted EBITDA for the full year of FY21 (barring, among other things, any further unforeseen negative impact or escalation of COVID-19). In addition, we are forecasting positive cash flow from operations for the full year of FY21. This forecast results from the success of our restructuring initiatives taken throughout FY20 as well as the benefits of our technological innovations put in motion when we became a public company 2 years ago. Over these past 2 years we have been promising to disrupt the X-Ray scanning market through innovation, and we believe that we are delivering on that promise today.“

Financial Highlights

Period Ended Oct. 31

Q4 2020

Q4 2019

Change

FY 2020

FY 2019

Change

Revenue

4,852,379

5,310,129

(457,750)

19,013,905

28,427,023

(9,413,118)

Gross profit

1,197,758

1,789,994

(592,236)

5,696,891

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