NORTH VANCOUVER, BRITISH COLUMBIA -- (Nov. 30, 2007) - Open EC Technologies, Inc. ("OpenEC" or "the Company") (TSX VENTURE:OCE) announced today a new sales record with sales for the 1st quarter increasing 728% to $1,286,583 with EBITDA earnings of $180,434 for the period ended September 30, 2007.
Highlights of the performance during the three months ended September 30, 2007 are as follows:
- Revenues hit a record high of $1,286,583 with an increase over 728%, compared to the revenues of $155,399 in the fiscal quarter of 2007. All subsidiaries have experienced rapid growth on revenues.
- All subsidiaries have experienced rapid growth on revenues. According to the management of the Chinese subsidiaries Headware and Jinhuaye, the subsidiaries were able to grow the revenues by more than 140% compared to the same period of previous year; while SoftCare grew the revenues by 56% compared to the same period of previous year.
- The Company recorded a small profit of $21,004 in the three months ended September 30, 2007, compared to a loss of $66,653 in the first fiscal quarter of 2007 and a loss of $427,940 a quarter before.
- The EBITDA which excludes the non-cash depreciation and amortization was $180,434 in the quarter ended September 30, 2007, compared to a negative amount of 63,656 in the same period of previous year.
- Cash flow for operating reached $514,259 in the three months ended September 30, 2007, compared to a negative cash flow from operating of $101,863 in the first year of fiscal year 2007.
- Integration of the Canadian and Chinese operations is well underway. New opportunities which will be built on the strength of both sides have been identified. Areas with synergies include outsourcing for telecommunication, banking and retailers in North America, mobile commerce technology to North America and introducing EDI technology to operators in China. The Company will continue to focus on leveraging the two company's software solutions, expertise, resources and knowledge into solutions that will expand the Company's market as well as increase overall profit and growth.
"We are extremely satisfied with the performance of the first fiscal quarter of 2008 of both our North American and China subsidiaries," commented OpenEC CEO Mr. Martyn Armstrong, "with integration of our China business subsidiary well under way we look forward to expanding the businesses in both North America and China and fully realize the synergies that will grow the revenue and earning potential of Open EC."
The three months ended September 30, 2007 is the first quarter consolidated with the financial results of the Company's newly acquired Chinese operating subsidiaries Shenzhen Headware Software System Ltd. ("Headware") (100% owned) and Shenzhen Jinhuaye Software System Ltd ("Jinhuaye") (60% owned).
"With the first quarter of consolidated operations behind us we have successfully shown the abilities of our management and operations teams to work together." OpenEC's Co-CEO Mr. Zhongdong Zhou added, "this team commitment demonstrates our strength in blending the two cultures to draw out the best of the two operations in China and North America."
Change in year end:
During the period ended June 30, 2007, the Company changed its fiscal year end from May 31 to June 30. Accordingly, the consolidated financial statements presented are for the three months ended September 30, 2007 and for the three months ended August 31, 2006.
The comparative financial statements for the three months ending September 30, 2007, along with other information, may be obtained through the Company's website at www.openec.com or on SEDAR at www.sedar.com.
This press release is available on the Company's official on-line Investor Relations HUB at http://www.agoracom.com/IR/OpenEC for investor questions, answers and monitored commentary. Alternatively, investors are able to e-mail all questions and correspondence to OCE@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
About Open EC Technologies, Inc.
Open EC Technologies, Inc ("OCE") www.openec.com is a TSX Venture Exchange listed holding company specializing in the acquisition of software companies in e-business, mobile business and business to business (b2b) commerce. Our subsidiaries, SoftCare EC Solutions Inc., www.softcare.com , and Shenzhen Headware Software System Ltd., www.headware.cn provide software solutions to customers throughout North America and Asia. With over 400 employees in the OpenEC Group of companies we deliver global innovative software solutions to mid market through fortune 100 companies.
ON BEHALF OF THE BOARD
Martyn A. Armstrong, President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting either, Mr. Martyn A. Armstrong, President & CEO of the Company or Mr. Michael (Gong) Chen, CFO of the Company.
Trading in the securities of Open EC should be considered speculative. The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:Open EC Technologies, Inc.
Corporate Inquiries
Martyn A. Armstrong, President and CEO
(604) 983-8083
(604) 983-8056 (FAX)
Email: investors@openec.com
Website: www.openec.com
AGORACOM Investor Relations
Investor Relations
Email: OCE@Agoracom.com
