May 31 2012
BIOREM Inc. (TSXV: BRM) announced today its results for the first quarter of 2012:
Q1, 2012 revenue was $3,267,000, which is down $465,000 or 12.5% over the comparative period in the prior year. New orders in the quarter were $4.0 million resulting in a backlog increase of 0.7 million to $15.7 million. This compares to $2.8 million in bookings and a period ending backlog of $10.6 million in Q1, 2011.Gross Profit in the quarter was $380,000, or 11.6% of revenues compared to $1,366,000 or 36.6% of revenues in the same period in prior year.
Total Net Loss was $544,000 in the first quarter compared to a loss of $19,000 in the comparative period from last year. Total operating costs for the period were $863,000 compared with an operating cost of $1,272,000 in 2011, for a reduction of $409,000.
"While our results from the quarter have come in near our expectations, our gross profits in Q1 were lower primarily due to the completion of a large, low margin project taken last year in support of developing the biogas market." said Peter Bruijns, President and CEO. "We have made considerable progress on reduction of costs and continue to focus on cash management, revenue growth as well as gross margin improvement."
During the quarter, cash and cash equivalents were reduced by $100,000.
Subsequent to the first quarter, the Company announced a proposed private placement of up to 1400 Units at $1,000 per Unit for gross proceeds of $1,400,000, each Unit consisting of 8% debentures and one common share purchase warrant. A total of 535 units were issued on May 4, 2012 for proceeds of $535,000. The Private Placement remains open until June 4, 2012 for additional investment. The Company has successfully renegotiated its existing 12.75% debenture agreement providing for new repayment terms and revised covenants.
SOURCE Biorem Inc.