Syft Technologies grows revenue
Syft Technologies grows revenue on the back of increased sales
News release, 1 December 2008, Syft Technologies Limited, Christchurch, New Zealand
Christchurch-based Syft Technologies Limited (Syft) today announced that it had achieved revenue growth of over 320 percent for the six months to 30 September 2008 and that the Company is on track to post annual revenue of $5.2 million for the twelve months to 31 March 2009.
While revenue from operations, including the sale of the SIFT-MS based instruments grew from $373,000 in the first half of last year to $1,198,000 in the six months to 30 September 2008, the deficit after tax rose slightly from $1.92 million in the first half of last year to $1.96 million for the six months to 30 September 2008.
Syft's chief executive, Geoff Peck said, "Despite the uplift in revenue, this interim result doesn't necessarily demonstrate the progress the Company has made and provides only a limited insight into how we are travelling. To borrow a phrase from the sports field, 'it's a game of two halves' and the results achieved in the second half gives us confidence that we will indeed hit our target numbers in spite of a slow start and the prevailing global conditions."
Syft is forecasting trading revenue of around $5.2 million in the year to 31 March 2009 and a net deficit after tax for the year of $2.4 million compared to the $3.6 million recorded in the previous year. The Company expects to become profitable in financial year 2010.
Mr Peck says, "The number of established sales and the quality of prospects into the near future far exceeds anything achieved previously. This is a better indicator of future growth given that these numbers are being achieved against the background of international financial turmoil. In fact, our key markets seem to be holding up well.
"While Syft's scientific pedigree is well established, we are now starting to demonstrate that the Company is capable of developing a commercial pedigree to match. A key change has been the reconstituted board which specifically focuses on the company's globalisation. We will see the positive effect of these changes as we move ahead with our growth plans.
"The interim result represents just two months of actual sales as the initiatives put in place last financial year took some time to take effect. Happily, we are now seeing these come to fruition and we are confident that we will achieve our sales goal for the year, hitting our revenue target.
On 20 November, Syft announced its plans to raise up to $5 million by way of private placement and an accompanying Rights Issue to existing shareholders. The capital raised will enable the Company to realise the market potential of its Selected Ion Flow Tube Mass Spectrometry (SIFT-MS) technology. A Prospectus and Investment Statement will be issued shortly.
"Despite the slow start, we are on track to ship the forecasted number of units this year, signalling that the Company has graduated from the start-up phase where the capital raised is primarily dedicated to fund the inevitable cash burn.
"Syft is now moving to realise the full commercial potential of our innovative technology. Achieving our goal of becoming the first choice of instrument in any one of the four sectors we are currently targeting would result in annualised sales in excess of 100 units, thereby delivering on the technology's promise and providing a significant uplift in shareholder value," Geoff Peck said.