NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2009) - Open EC Technologies, Inc. (the "Company") (TSX VENTURE:OCE) announced today sales revenue for the second fiscal quarter $2,470,660 with EBITDA earnings of $27,083 for the period ended December 31, 2008.
Highlights of the performance during the three months ended December 31, 2008 are as follows:
The revenues for the quarter were $2,470,660 with an EBITDA of $27,083 as compared with revenues of $1,380,391 and an EBITDA of ($90,300) during the same period in the last fiscal year.
The Company finalized the purchase of certain intellectual property, including certain software source code, licences and trademarks, from Mala Ventures Inc. ("Mala"), a private company controlled by a director of the Company. On October 15, 2008, the Company issued 2,000,000 units to Mala, each unit consisting of one common share valued at $0.165 and one share purchase warrant exercisable at $0.205 per share for a period of two years.
The Company announced on February 4, 2009 that its subsidiary, Shenzhen Headware Software Systems Ltd. had entered into an agreement, subject to TSX Venture Exchange acceptance to sell its China operations, including a 60% ownership interest in Shenzhen Jinhuaye Software Ltd; to Mr. Zhongdong Zhou ("Mr. Zhou").
The sale of the China operations to Mr. Zhou, was initiated by a sudden downturn in business contract development with a major customer, Huawei in China. With the sale of the China business operations, Open EC will substantially improve its working capital, improve its shareholder's equity by approximately 20% and lower its costs of operations. Overall, the Company will have lower short term revenues, but with the reduced costs and increased working capital, it should improve its financial stability at a time when cash resources are most important.
The increase in working capital will enable the Company to focus its business development in the lower risk, higher margin potential, North American e-business software market through its subsidiary, SoftCare EC Solutions Inc. This move will strengthen the Company's ability to continue to grow its profitable EDI software business subsidiary and accelerate its initiatives in the new economy resilient markets of Healthcare and Government Services, primarily in the USA.
Open EC will continue to hold its interest in Headware, a foreign China corporation. This will allow Open EC, through its Headware subsidiary, to more effectively evaluate and to develop new EDI business opportunities and partnerships in China which would be complementary to the Company's plans to maximize the revenue potential for its existing e-Business Software Products.
The comparative financial statements for the three months ended December 31, 2008, along with other information, may be obtained through the Company's website at www.openec.com or on SEDAR at www.sedar.com.
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 & CEO |
