Opsens third-quarter revenues increase 15% to $1,469,000

Opsens Inc. ("Opsens") (TSX-V: OPS) today released its financial results for the three- and nine-month periods ended May 31, 2010.

Highlights - Quarterly revenue climbed to $1,469,000 - Strong growth of 44% for consolidated revenues since the start of fiscal year 2010 - Net loss of $341,000 for the quarter, or $0.01 per share - Opsens' OPP-W sensor successfully completed its second year of operation in the Steam Assisted Gravity Drainage (SAGD) wells run by an oil sands producer in Alberta - New orders for the OPP-W and for Opsens' CO2-enhanced oil recovery systems.

Not only is Opsens receiving repeat orders from its current customers, but more and more oil and gas producers are installing the OPP-W sensor, which allows them to measure pressure and temperature in SAGDs. During the third quarter, the system successfully completed its second year of continuous operation, demonstrating the sensor's long-term performance. Opsens also received a new order for its CO2-enhanced oil recovery systems. In an effort to further enhance its product offering, Opsens launched a new high-temperature fiber optic extensometer for measuring soil displacement and monitoring caprock integrity.

In the medical field, the development of an Opsens proprietary medical instrument is progressing swiftly. Opsens plans to do animal study during the summer of 2010.

Financial results - Three-month period ended May 31, 2010

The Company recorded $1,469,000 in revenues for the three-month period ended May 31, 2010, compared with $1,279,000 for the same period in 2009, a 15% increase. Sales growth for the third quarter was generated primarily through an organic growth of more than $700,000 in the oil and gas industry.

The net loss for the quarter ended May 31, 2010 was $341,000, compared with a loss of $215,000 for the same period ended May 31, 2009. The increase in the net loss is primarily reflective of an increase in research and development and administrative expenses.

R&D expenses rose to $346,000 for the quarter, compared with $216,000 for the same period in 2009. The variance over the three-month period was primarily caused by the increase in sub-contracting expenses, the number of research employees and the material.

Administrative expenses were $386,000 and $262,000 respectively for the three-month periods ended May 31, 2010 and 2009.

Sales and marketing expenses were stable, at $233,000 for the quarter ended May 31, 2010, compared with $232,000 for the same period in 2009.

Financial results - Nine month period ended May 31, 2010

The Company recorded revenue of $3,586,000 for the nine-month period ended May 31, 2010, compared with $2,498,000 for the same period a year earlier, a 44% increase. The upsurge in sales for the third quarter was primarily generated from an organic growth of more than $1,163,000 in the oil and gas industry. The increased revenue from this sector was driven by the escalation of OPP-W sensor deliveries for SAGD wells.

Grant of stock options

Opsens' Board of Directors also authorized yesterday the grant of a total of 219,750 stock options, of which 110,000 were granted to certain directors and officers and 109,750 to certain employees, as provided in the Opsens' stock option plan adopted by the shareholders on January 19, 2010.

Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe for one Opsens' common share at the latest on July 5, 2015 and at a price equal of $0.36 per share. The stock options granted to the directors entitle the holders to subscribe immediately for Opsens' common share whereas the stock options granted to the employees will be vested over a period of four years at a rate of 25 % per year, the first tranche being vested at the end of the first year following the granting of the stock options.

Source: OPSENS INC.