BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three-month period ended September 30, 2010. Biorem's complete 2010 third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
"In Q3 of 2010, along with a Gross Margin improvement from the previous quarter, the Company generated cash of $232,000," said Peter Bruijns, President and CEO. "We are focusing a great deal of attention on generating positive cash flow from operations but also generating cash from our balance sheet through improvements to project management systems. This effort is expected to result in reduced Unbilled Revenues and accelerated cash from Accounts Receivable."
Bookings year to date of 2010 were $14,500,000, which represents a 23 percent increase from September 30, 2009. The Company's current backlog is $12,131,000 as of the third quarter of 2010, up 16 percent in comparison to third quarter 2009.
Financial Summary:
THREE MONTHS ENDED SEPTEMBER 30, 2010
The gross margin was 37% in Q3 2010 compared to 48% in the same period in 2009. Gross profit in Q3 2010 was $1,816,000 down from $2,348,000 in Q3 2009. When adjusted for one time Operations re-organization costs and the installation of a subsidized technology demonstration project, Q3 gross margins would be 39% or 1% below the company's long term average of 40%.
As at September 30, 2010, Biorem had total working capital of $6,035,000, including cash and short-term investments of $1,479,000 and unbilled revenue of $4,909,000, compared to total working capital of $6,080,000, cash and short-term investments of $1,247,000 and unbilled revenue of $5,366,000 as at June 31, 2010.