Microtec reports steep increase in commercial installs

SSN Staff  - 
Thursday, May 22, 2003

May 22, 2003

ST. AUSGUSTIN, Quebec - A sharp spike in commercial business for full-service firm Microtec Enterprises led the company's 6.2 percent increase in operating revenues for the 2002 fiscal year, where revenues reached $31,039,000 compared to $29,225,000 in 2002.

Revenues from the company's commercial activities, an area where the company has focused over the past few years, jumped 44.5 percent, part of a two and a half percent jump in monitoring service revenues.

Despite the revenue growth, the company posted a net loss of $7.7 million for 2002, compared to a loss of $1.2 million in 2001.

"The results obtained in terms of operation met the main objectives that we had set at the start of the year," said Raymond Gilbert, chairman and chief executive officer of Microtec. 'While maintaining a growth of the EBITDA, Microtec reduced its recruitment costs by nine percent in 2002 and by 21 percent over the last three years."

The company also saw more revenues from new subscribers and from existing clientele and stabilized its debt level, Gilbert said.

Microtec also re-evaluated the book value of some of its assets to "reflect a concern about showing greater conservatism" in its financial reporting, the company said in a release.