20-20 Technologies rises to $700,000 profit in fourth quarter, revenues weaken
Software developer 20-20 Technologies Inc. (TSX:TWT) produced a profit of US$700,000 in the fourth quarter despite weaker revenues on lower licensing sales.
The Laval, Que.-based company, which reports results in U.S. dollars, said profits were worth four cents per share for the period ended Oct. 31. That compared to a $1.3-million loss, or seven cents per share, a year earlier.
Revenues slipped 17.3 per cent to $16.2 million from $19.6 million in 2008, as licence sales declined 33.2 per cent across the operations.
20-20 creates design, business and manufacturing software for the interior design and furniture industries, and licenses its products across North America, Europe and China.
For the full year, profits were $2.6 million compared to a $2.3 million loss in 2008.
Overall, revenues were down to $63.1 million, from $78.6 million, on continuing challenges from the economy and unfavourable currency exchange rates, the company said.
"While the interior design business was severely impacted by the recession throughout 2009, 20-20 Technologies remained a leading supplier to the industry in all principal markets," said chief executive Jean-Francois Grou in a release.
"By reducing overhead, selectively downsizing and bringing costs in line with revenues, we considerably improved our profitability. The lean efficiency we established has positioned us to benefit considerably as the market recovers."
Shares of the company were unchanged at $2.80 Wednesday morning on the Toronto Stock Exchange.