Pure Technologies warns of disappointing 2005 result
Calgary, Canada-based Pure Technologies (TSXV:PUR) warned yesterday that it expected to drop to a full-year loss of about $3.3 million when it reports its results next month. The expected loss compares to net income of $1.36 million in 2004. Pure stock plunged on the news, dropping 25 cents, more than 14 per cent, to $1.50 in light trading on the TSX Venture exchange. Pure said it made investments in new technologies and in the start-up of its PureTech Systems video surveillance subsidiary. “In addition, significant costs were encountered with the development of new pipeline hydrophone arrays and the company was unable to replace revenue received in 2004 from a single $4 million contract,” Pure said in a release. Full financial results are expected to be released on 20 March 2006.
Pure develops technologies for management and surveillance of critical infrastructure including water and wastewater pipelines, bridges, oil and gas pipelines, transportation infrastructure, nuclear power plants, and other critical structures.
Chairman Jamie Paulson did not mince words: “While these results are a major disappointment to Pure’s shareholders, employees and management, we are determined to continue investing in the development and commercialization of innovative infrastructure management products as a strategy for building a profitable growth-oriented business. Our working capital position is strong, our order backlog is at an all-time high and recurring revenues for 2006 are anticipated to exceed $1.8 million. The introduction of new products is expected to help reduce the reliance on a small number of projects for revenue generation and the deployment of permanent and long-term AFO monitoring systems is expected to increase our recurring revenue stream significantly.”
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