Financial Results:
Gross Profit rose to CAD643,415 (38.1% of sales) for the 2008 fiscal year versus CAD411,382 (18.0%) for the same period in 2007.
Total selling, general and administrative expenses increased from CAD1,323,362 in 2007 to CAD1,982,111 in 2008.
Improved job costing and stronger gross margins offset the CAD598,509 decrease in operating revenue during fiscal 2008. The rise in S, G &A was due to increased spending on marketing materials, advertising, selling expenses, trade shows, rebranding and investor relations.
The 2008 net loss included commercial and market development expenses of CAD244,234 in Sofame Europe S.A.S., stock-based compensation of CAD395,525 related to option plan accounting and non-recurring re-organization expenses CAD46,893.
John Gocek, president and chief executive officer of Sofame stated, Sofame’s restructuring plan was completed during fiscal 2008 with minimal disruption to operations despite a thorough overhaul of physical plant, equipment, engineering software, systems and facilities. Sofame started the year with a $2 million sales funnel, and finished with over $41 million in active projects under quotation and an expanded manufacturing capacity. The subsequent significant confirmed order from a major American university, and another job shipped in Q1 to a brand name foods company are indications that Sofame’s sales plan is working despite the long sales cycle. Sofame is ideally positioned to benefit from the upcoming unprecedented investments by both governments and industry in energy efficiency and reduction of green house gas emissions.
