B-Scada Reports Consecutive Quarters of Record Revenue
Tuesday, September 16, 2014

CRYSTAL RIVER, FL, September 16, 2014 B-Scada, Inc., a software solutions provider specializing in compelling visualization technology and HMI/SCADA products, today reported financial results for its third quarter of FY2014 ended July 31, 2014 (3QFY14) and first nine months of fiscal year 2014 (9moFY14) compared to the third quarter (3QFY13) and first nine months of fiscal year 2013 (9moFY13). It is the second consecutive quarter of increases in revenue and net income as compared against prior quarters.

3QFY14 highlights compared with 3QFY13:

  • Revenues increased 69% to $574,315 - an increase of $234,171 from $340,144
    • Customer development services for contracts entered into in FY2013 accounted for most of the $234,171 increase in technology licensing and support revenues

  • Sales & Marketing costs were $81,879, an increase of $32,255 or 65%
    • Marketing, internet pay-per-click advertising, and payroll and related costs are the major contributing factors in the increased costs

  • General Administrative expenditures were $192,764 an increase of $67,459 or 54%
    • Increase is primarily due to building infrastructure to handle anticipated customer demand

  • Net income increased 133% to $181,553, an increase of $103,613 from $77,940
    • Major contributors were increases in technology licensing and support revenues, customer development services and customer training

9moFY14 highlights compared with 9moFY13:

  • Revenues were $1.418 million, an increase of $362,830 or 34% from $1.055 million
    • Service revenues were generated from implementation of our software products and custom training provided to customers

  • Sales and Marketing costs increased to $254,054 an increase of $87,022 or 52% from $167,032
    • Increases were due to expanded staff and payroll-related costs, as well as additional marketing and advertising campaigns

  • General & Administrative costs were $428,751 an increase of $147,424 or 52%
    • Increase is primarily related to payroll and related costs, repairs and maintenance and professional and consulting fees

  • R&D expenditures were $87,450, an increase of $22,723, or 35%, over $64,727
    • Payroll and related costs increased slightly as work on the release of our new product, Status Enterprise, moved forward

  • Net Income increased 12% to $353,766, an increase of $36,499 from $317,267

"We believe the increases in revenue are a reflection of the increased confidence the market has in our products and expertise," said Ron DeSerranno, CEO. The Status Enterprise HMI/SCADA system introduced into the market this spring is being very well received. It will begin to have a positive influence on our revenue this fall. The additional $800,000 in equity financing received by the Company this summer will be used to further promote the Company and our products globally.

Comparison of the Three Months Ended July 31, 2014 and 2013

The following tables set forth, for the periods indicated, certain items from the statements of operations along with a comparative analysis of ratios of costs and expenses to revenues.

 

For the three months ended July 31,

 

2014

 

2013

 

(Unaudited)

 

(Unaudited)

 

 

 

% of

 

 

 

% of

 

Amounts

 

Revenues

 

Amounts

 

Revenues

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Technology licensing and support

$497,632

 

87%

 

  $     249,515

 

73%

Commercial software

         76,683

 

13%

 

90,629

 

27%

Total revenues

         574,315

 

100%

 

340,144

 

100%

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Technology licensing and support

           53,742

 

9%

 

           39,566

 

12%

Commercial software

           52,667

 

9%

 

           38,699

 

11%

Sales and marketing

           81,879

 

14%

 

           49,624

 

15%

Research and development

             6,853

 

1%

 

             4,870

 

1%

General and administrative

         192,764

 

34%

 

         125,305

 

37%

    Depreciation expense

             3,672

 

1%

 

             1,307

 

--

Total operating expenses

         391,577

 

68%

 

         259,371

 

76%

 

 

 

 

 

 

 

 

Other (income) expenses

             1,185

 

--%

 

             2,833

 

1%

 

 

 

 

 

 

 

 

Net Income

$181,553

 

32%

 

$77,940

 

23%

 

 

 

 

 

 

 

 

Basic earnings per common share

$0.01

 

 

 

$--

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$0.01

 

 

 

$--

 

 

 

 

Comparison of the Nine Months Ended July 31, 2014 and 2013

The following tables set forth, for the periods indicated, certain items from the statements of operations along with a comparative analysis of ratios of costs and expenses to revenues.

 

For the nine months ended July 31,

 

2014

 

2013

 

(Unaudited)

 

(Unaudited)

 

 

 

% of

 

 

 

% of

 

Amounts

 

Revenues

 

Amounts

 

Revenues

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Technology licensing and support

1,194,634

 

84%

 

$     751,387

 

71%

Commercial software

         223,227

 

16%

 

303,644

 

29%

Total revenues

1,417,861

 

100%

 

    1,055,031

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Technology licensing and support

         134,435

 

9%

 

99,495

 

9%

Commercial software

         150,189

 

11%

 

111,102

 

11%

Sales and marketing

         254,054

 

18%

 

167,032

 

16%

Research and development

           87,450

 

6%

 

64,727

 

6%

General and administrative

         428,751

 

30%

 

281,327

 

27%

Depreciation expense

             7,752

 

1%

 

3,851

 

--%

Total operating expenses

1,062,631

 

75%

 

727,534

 

69%

 

 

 

 

 

 

 

 

Other (income) expenses

             1,464

 

--%

 

10,230

 

1%

 

 

 

 

 

 

 

 

Net Income

  $353,766

 

25%

 

$    317,267

 

30%

 

 

 

 

 

 

 

 

Basic earnings per common share

$         

0.01

 

 

 

$         

0.01

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$         

0.01

 

 

 

  $         

0.01

 

 

 

 

About B-Scada, Inc.

B-Scada

specializes in the compelling visualization of real-time data. Its visualization technology and SCADA products are deployed in manufacturing, power & utilities, transportation, petrochemical, building automation, and other fields of business where visualization of real time data is critical. B-Scada's in-house expertise and experience has provided them the opportunity to partner with companies from various vertical markets, and assist them to develop custom solutions that meet their specific needs.B-Scada's goal isto help clients transfer real-time production and operational data into actionable information through graphically-compelling, functional, and intuitive user interfaces. Learn more at http://www.scada.com

 

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like "believe," "expect" and "anticipate" mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: general economic conditions, the results of potential future business in our pipeline, the financial and operational health of our prospects and customers, acceptance of new software

and improved versions of our existing software by our customers, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, a sustainable market and many other which have not been stated. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.


B-Scada Investor Relations and PR Contact

Debra Gardner

General Manager

B-Scada, Inc.

[email protected]