Fiber Optic Systems Technology, Inc, a developer of patented fiber optic sensing products, today announced its third quarter financial results. The interim financial statements can be viewed at our website at www.fox-tek.com and have been filed on SEDAR (www.sedar.com). All amounts are expressed in CAD unless otherwise noted.
During the quarter, FOX-TEK substantially strengthened its corporate resources, in particular its sales and marketing infrastructure, as the Company moves toward full commercialization of its patented technology.
Among the highlights of the quarter ending September 30, 2005:
– The Company accepted a purchase order for an FTI-3405 instrument to ISIS Canada (Intelligent Sensing for Innovative Structures) a federal Centre of Excellence specializing in instrumenting bridge structures. FOX-TEK has been a partner with ISIS Canada on several installations involving fiber optic sensors.
– Marketing contact was made with more than 75 firms. Over 20 organizations currently have projects under consideration.
– J. Douglas Young (a director) joined the company part-time as Executive Vice President responsible for building the North American sales organization.
– FOX’s technology continues to gain scientific recognition as evidenced by Chief Scientific Advisor Dr. R.C. Tennyson’s presentation of a paper co-authored by Dr. Eric Christiansen of NASA’s Johnson Space Center at the 5th International Workshop on Structural Health Monitoring.
– $1,975,000 was raised from the conversion of warrants and the exercise of options.
For the three months ended September 30, 2005, FOX reported a loss of $693,000 or $0.03 per share, as compared to a loss of $526,000 or $0.03 per share in the comparable period of 2004. The main factor in the larger loss was an increase in operating expenses incurred in advancing the Company’s efforts to commercialize its technology.
For the nine months ended September 30, 2005, FOX recorded a loss of $1,962,000 or $0.07 per share, as compared to a loss of $1,486,000 in the same period of 2004, or $0.11 per share. The larger loss again is attributable to higher operating expenses.